Vietnam's Crackdown on Transhipment Fraud

Vietnam's trade ministry has issued a directive to combat illegal transhipment practices to the U.S., aiming to evade hefty tariffs. The move follows tensions over allegations of China using Vietnam to bypass duties. The directive calls for stringent inspections to verify goods' origins.

Vietnam's trade ministry has taken a significant step to curb illegal transhipment activities intended to evade U.S. tariffs. A directive issued on April 15 targets trade fraud, identifying it as a growing concern amid escalating trade tensions.

The directive does not explicitly identify countries of origin for potential transhipments. Nonetheless, it highlights the nearly 40% import share from China, a nation the U.S. suspects of leveraging Vietnam as a transhipment hub.

The initiative arrives amid fears that U.S. reciprocal tariffs, postponed until July, might harm Vietnam's export-reliant economy. New regulations focus on verifying the origin of imported goods, especially amid China's strengthening bilateral agreements with Vietnam.

(With inputs from agencies.)