Vietnam Tightens Trade Fraud Penalties Amid U.S. Tariff Strategy

Vietnam is intensifying its crackdown on trade fraud and illegal transshipment, primarily focusing on Chinese imports to comply with a U.S. agreement. The country is implementing stricter sanctions and inspections to prevent fraudulent 'Made in Vietnam' labels, a move crucial to maintaining favorable relations with the U.S.


Devdiscourse News Desk | Updated: 10-07-2025 13:49 IST | Created: 10-07-2025 13:49 IST
Vietnam Tightens Trade Fraud Penalties Amid U.S. Tariff Strategy
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Vietnam is stepping up measures against trade fraud and illegal transshipments, specifically targeting Chinese products, to honor commitments made to the United States. Documents viewed by Reuters highlight Vietnam's plan to implement stricter penalties and inspection protocols as part of a broader crackdown.

Last week, Vietnam and the U.S. reached a preliminary tariff agreement, which saw a reduction in tariffs on Vietnamese imports. However, items determined by Washington to be illegally transshipped will face a 40% levy. The Vietnamese government is preparing a new decree to enforce tougher sanctions against fraudulent practices.

The decree will introduce stringent checks and sanctions for fraudulent origin certification. Despite an increase in Vietnam's exports to the U.S., there is uncertainty about the implementation of the tariff deal and what constitutes illegal transshipment. The Vietnamese trade ministry has not commented on these developments.

(With inputs from agencies.)

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