Since the Sino-US trade war, China’s production transfer has led to a surge in Vietnam’s exports to the United States. In view of this, Vietnam will strengthen the prohibition of illegal labeling to prevent “circuitous exports” of imports from China and other countries to third countries via Vietnam.
According to Nikkei.com, Vietnam’s trade surplus with the United States reached $21.6 billion from January to May, surging by more than 40% over the same period last year. The Vietnamese government has recently begun drafting a law to prevent circuitous exports.
As of early July, local media reported one after another that Vietnam began to intensify the investigation and punishment of illegal labels, which was the problem of forgery of the origin labels of Asanzo, a newly emerging household appliances company, exposed in June.
Local reports show that Asanzo imports nearly finished products made in China and sells them in Vietnam as “made in Vietnam” after simple processing such as parts installation in Vietnamese factories.
Allegedly, the most important work of the factory workers is to tear off the label “Made in China” attached to the LCD panel. Nguyen Bich Lam, Vietnam’s director of national statistics, pointed out in response to Asanzo’s situation that similar conditions had normalized in Vietnam and that such imports were circuitously exporting.
In May, Haifang City of Vietnam investigated the case of Chinese-made shoes exported as Vietnamese-made shoes.
U.S. President Trump hinted in June that if Vietnam did not ban circuitous exports, it might face the same punitive tariffs as China.
On July 2, the United States identified some steel products made in Vietnam exported to the United States as circuitous exports, and decided to impose a tariff of up to 456%.
Although the steel product is not manufactured in mainland China, it shows that the United States will treat the circuitous exports from Vietnam with stringent attitude.
Relevant Chinese e-cigarette exporters should keep abreast of relevant information and adjust their business to avoid losses.