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Vietnam associations propose tight control over China exports

Vietnamese associations have proposed stricter control over exports to Chinese markets due to the high tariffs in the US market. They have urged association members to apply the cross-control mechanism to local exports to prevent possible negative impacts.

Chinese enterprises have raised their orders for products manufactured or processed in Vietnam which they plan to export to the US. This will bring short-term benefits to Vietnamese enterprises but may cause a surge in export revenue from these products, thus posing a high risk of increased tariffs imposed by the US Department of Commerce (DOC).

Thus, if the DOC detects Vietnamese enterprises outsourcing products to their Chinese partners, not only will the outsourcing firms face high duties but their peers in other sectors will as well. Vietnam is the second-largest supplier of textile-garment and leather-footwear products to the US after China. Therefore, China may ship its products to Vietnam to complete simple stages and then export those products stateside, bearing the labels of Vietnamese enterprises to avoid high tariffs.

 

 
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