Vietnam-US trade cooperation is strengthening as the two countries step up efforts to combat illegal transshipment and trade fraud. It aims to prevent businesses from evading tariffs and other trade barriers. The move comes amid growing scrutiny over the origin of products entering the U.S. market.
The latest development highlights the importance of Vietnam-US trade cooperation in improving supply chain transparency. It also helps prevent tariff evasion particularly as Chinese-origin goods could be rerouted through Vietnam and falsely declared as Vietnamese-origin products. As part of these efforts, a workshop between American and Vietnamese officials took place in Hanoi on Thursday on trade cooperation and fraud. The initiative aims to protect legitimate businesses, strengthen supply chain transparency. It also ensures that goods entering international markets comply with rules of origin.
Vietnam-US Trade Cooperation Targets Tariff Evasion
Transshipment is considered illegal when goods are moved through a third country, but misrepresented in their origin. Thus, it enables the exporters to dodge any trade barriers or tariffs. This problem has acquired special significance for Vietnam, owing to its importance as a manufacturing/export centre in Asia.
Vietnam faces mounting pressure to stop businesses from rerouting Chinese-origin goods through the country. These businesses falsely declare the items as Vietnamese-origin products. They then export them to the United States. The concern has grown as Vietnam has become an important part of regional supply chains and a manufacturing destination for companies seeking to diversify production.
The latest initiative builds on steps taken by Vietnam to address U.S. concerns. In April 2025, Vietnam’s trade ministry instructed authorities and businesses to strengthen controls on the origin of goods and materials. It also increased efforts to combat illegal transshipment and trade fraud. The issue also played an important role in U.S.-Vietnamese tariff negotiations. In July 2025, the two countries announced a trade agreement that imposed a 20% tariff on Vietnamese exports to the United States and a potential 40% tariff on goods that the U.S. deemed transshipped to evade its tariffs. The agreement also granted U.S. goods duty-free access to Vietnam.
Vietnam Tightens Controls as US Scrutiny Grows
Vietnam’s efforts to combat trade fraud have intensified alongside the rapid growth of its trade relationship with the United States. The country has become a major alternative manufacturing base as global companies diversify supply chains and reduce their dependence on China. Vietnam has responded by tightening controls, strengthening inspections and increasing efforts to combat illegal transshipment and trade fraud. Moreover, the government has also considered tougher penalties for illegal transshipment and trade fraud.
As shown by the latest workshop in Hanoi, continued collaboration between the countries will be crucial in efforts of both nations to protect their trade and prevent any illegal tariff evasion. Coordinating efforts of their respective customs and trade authorities would be beneficial in identifying fraudulent shipments and verifying the origin of goods.
For Vietnam, strict enforcement of legislation is crucial in order to maintain credibility as a legitimate manufacturing and export hub and ensure compliance with rules of origin. Vietnam-US trade cooperation gives the US an opportunity to address tariff evasion while maintaining its economic relationship with Vietnam.
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