Vietnam’s shipments from China, to US reach record high amid trade fraud crackdown

By Francesco Guarascio and Khanh Vu

HANOI (Reuters) -Vietnam’s imports from China and exports to america each reached a post-pandemic report in April, amid talks with Washington to cut back Hanoi’s commerce surplus and a crackdown on Chinese language items being shipped to the U.S. through its territory.

The Southeast Asian nation faces the chance of 46% duties on its exports to the U.S. if the White Home confirms this fee on the finish of a worldwide tariff pause in July. This might undermine Vietnam’s progress mannequin and hit multinationals exporting from the nation, together with Samsung and Nike.

Hanoi has made a number of gives to the Trump administration to keep away from excessive levies, together with clamping down on unlawful transshipment of Chinese language items to the U.S. through Vietnam. Items profit from decrease tariffs if labelled as ‘Made in Vietnam’.

Nonetheless, commerce tendencies which have attracted U.S. criticism are accelerating, doubtlessly complicating Vietnam’s efforts to extract U.S. concessions in ongoing commerce talks.

The Trump administration needs to cut back commerce imbalances, however Vietnam’s surplus with america – already one of many highest globally – expanded by almost 25% within the 4 months to April yr on yr, in accordance with Vietnam’s statistics company.

In March alone, it exceeded $13.5 billion, the very best month-to-month determine ever, U.S. knowledge confirmed.

Producers in Vietnam are ramping up exports to america earlier than a doable tariffs hike, a number of business executives stated.

In April, shipments to the U.S. exceeded $12 billion, 34% larger than a yr earlier, and the biggest worth recorded after the COVID-19 pandemic, Vietnam’s customs knowledge confirmed.

Vietnam’s Cai Mep deep-sea port, which handles a lot of the nation’s sea-borne exports to america, is experiencing a surge in shipments to the U.S., stated Soren Pedersen, vice chairman at SSA Marine, which operates a port in Cai Mep and is likely one of the world’s largest port operators.

He informed Reuters Cai Mep, which hosts all main transport firms, together with Maersk, MSC and COSCO, has 26 container ships booked for weekly departures to the U.S. in Could, “a report excessive” from a median of 20-22.

“Most container terminals are actually working at or close to full capability,” he stated, noting that was in anticipation of doable larger tariffs.

CHINA IMPORTS

On the similar time, Vietnam is ramping up imports from China, which additionally reached a post-pandemic report in April, exceeding $15 billion, in accordance with customs knowledge.

Vietnam’s exports to the U.S. lately have been fuelled by imports from China, with inflows from Beijing carefully matching the worth and swings of exports to Washington.

Vietnam’s imports of Chinese language items, usually parts or uncooked supplies utilized in Vietnamese factories, grew almost 31% in April from a yr earlier. Industrial manufacturing rose 8.9% in the identical interval.

White Home officers have accused Vietnam of being a mere waypoint for items made in China and shipped to america, with no or inadequate worth added within the nation to justify ‘Made in Vietnam’ labels.

In response, Hanoi began a crackdown on unlawful transshipment in April, growing controls on imported items and the issuance of certificates about merchandise’ origins.

(Reporting by Francesco Guarascio, Khanh Vu and Phuong Nguyen; Modifying by Jacqueline Wong)