Vietnam Urgently Tightens Origin Rules Amid U.S. Tariff Concerns

Vietnam's Ministry of Industry and Trade has issued a new directive to strengthen oversight of product origin and crack down on illegal transhipment practices, primarily to protect the country's export access amid tightening U.S. and EU trade regulations. The move comes as Vietnam faces investigations from the U.S. and EU over possible tax evasion involving wood, steel, and footwear, with authorities particularly concerned about inadequate traceability records. The directive, effective April 15, addresses the risk of Vietnam being used as a transhipment hub—especially for Chinese goods—to evade U.S. tariffs, with nearly 40% of Vietnam's imports coming from China. Enhanced measures include upgrading the electronic certificate of origin system, real-time alerts for irregularities, and stricter customs inspections. Industries like textiles and timber are under pressure to provide detailed supply chain transparency to maintain market access in the U.S. and EU. These steps are seen as vital for safeguarding Vietnam's export-driven economy against potential sanctions and trade disruptions.