Vietnam to curb fraud in plywood exports to US

Temporary imports of plywood products waiting for being exported to the US will be suspended from December 27 till end of 2024, according to recent statement of Ministry of Industry and Trade.

The decision was made to prevent fraud on product origins and tariffs. The illegal product transferring could place Vietnam’s wood exports at risk of being heavily taxed by US government.

The ministry said that plywood is among several products which are highly potential to be falsely labeled as “Made-in-Vietnam”.

Amid US – China trade war, Vietnamese authorities are struggling to curb fraud in exports since manufacturers seek to dodge punishing tariffs.

Exporters have been shifting production from China to Vietnam to avoid high tariffs imposed by US President Donald Trump on hundreds of billions of dollars worth of Chinese goods.

The move has also prompted concerns on a rise in manufacturers illegally claiming their products are from Vietnam.

According to the Ministry of Industry and Trade, 15 commodities including textiles, footwear, electrical components, iron, steel and wood products have been identified as fraud risk due to a sudden surge of imports from China and exports to US market.

Vietnam always enjoys high trade surplus with US while facing large deficit with China. In the first ten months of this year, Vietnam has $38.5 billion surplus with US and $29 billion deficit with China.

For wood and products from wood, Vietnam export revenue reached $8.55 billion while US market contributes $4,2 billion during the 10-month period, according to data from Vietnam Customs Office.

Vietnam discovered dozens of fake product-origin certificates and illegal transfers by companies trying to sidestep US tariffs on everything from agriculture to textiles and steel.

Related stories:

• Vietnam seizes falsely labeled Chinese aluminum worth $4.3 billion: Dan Tri

• Vietnam’s Oct. trade surplus with US expands to $4.51 billion