Vietnam tightens origin checks on raw materials, pressuring converters

Vietnam has begun tightening checks on the origins of raw materials, especially imports from China, amid heightened trade tensions with the US. The move comes in the wake of President Donald Trump’s announcement of a 46% tariff on Vietnamese imports, prompting the Vietnamese government to reassure Washington by cracking down on origin fraud and illegal transshipment.

A Vietnamese converter purchasing PP from China said, “We used to bring in Chinese PP with little scrutiny. Now customs asks for a Certificate of Origin (C/O); otherwise, we pay 3% tax. This was rarely enforced before.” The stricter enforcement is hitting local manufacturers who rely on Chinese-sourced PP and had previously benefitted from 0% tariffs under ASEAN-China trade rules when a valid C/O was presented.

The government’s intensified inspection appears to be an economic response aimed at avoiding further escalation of US tariffs. In a recent letter to Trump, Vietnam offered to scrap all tariffs on US imports and requested a 45-day delay in the implementation of new duties.