Vietnam Tightens Borders: A Fight Against Illegal Transhipment

Vietnam's trade ministry has announced measures to curb illegal transhipment, aiming to avoid significant U.S. tariffs. With rising trade tensions, the ministry has called for stricter supervision of imports and 'Made in Vietnam' labels to prevent fraud and protect Vietnam's export-driven economy.

In an effort to sidestep severe U.S. tariffs, Vietnam's trade ministry is clamping down on illegal transhipment practices. A directive, effective April 15, underscores the urgency of identifying and mitigating trade fraud as tensions with the U.S. intensify.

The directive highlights Vietnam's reliance on Chinese imports, acknowledging the risk of becoming a gateway to avoid U.S. duties. Despite not naming specific countries, the document indicates a need for rigorous inspections of imports, particularly raw materials for manufacturing and export.

Vietnam's strategy to safeguard its economy involves heightened customs scrutiny and enforcement of stricter sourcing labels. These measures follow high-level emergency discussions triggered by the Trump administration's reciprocal tariff threats.

(With inputs from agencies.)