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Vietnam's govt, bizs act to prevent origin fraud, illegal transhipment

22 Apr '25
2 min read
Vietnam's govt, bizs act to prevent origin fraud, illegal transhipment
Pic: Shutterstock

Insights

  • As stricter control over the abuse of origin labelling has turned essential, Vietnam is trying to strengthen management of imported raw materials used in production.
  • To prevent the abuse of Vietnam's origin to evade tariffs through transshipment, businesses are also taking advantage of the 90-day pause to US tariffs to implement both short-term and long-term solutions to minimise negative impacts.
As stricter control over the abuse of origin labelling has turned essential amid growing pressure from US trade policies, Vietnam is trying to strengthen management of imported raw materials used in the production of exported goods.

The Ministry of Industry and Trade (MoIT) had earlier released a warning list of 17 export product categories from Vietnam to the United States that are at risk of trade remedy investigations due to concerns over origin fraud and illegal transhipment.

The new US tariff policies pose significant challenges to Vietnamese enterprises, as origin rules are likely to become more stringent, requiring higher domestic content in exported goods, experts say. This could raise production costs and place pressure on several export sectors.

To prevent the abuse of Vietnam’s origin to evade tariffs through transshipment, businesses in the country are also taking advantage of the 90-day pause to US reciprocal tariffs to implement both short-term and long-term solutions to minimise potential negative impacts, domestic media outlets reported.

Several industry experts view this challenge as an opportunity to restructure production process and enhance competitiveness.

Many businesses are working with partners to raise shipments during the 90-day tariff delay period to avoid inventory pole-up and higher tariffs, if negotiations fail.

Several businesses in Hai Duong have started implementing digital logs—tools that help track the entire production process, from sourcing raw materials to final processing, with strict input control from the outset.

Fibre2Fashion News Desk (DS)

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