US Customs Inspect China-Linked Factories in Vietnam Amid Trade Scrutiny

US Customs officials have conducted surprise inspections at factories in Vietnam with ties to China, according to sources familiar with the matter cited by Bloomberg. The inspections are examining records, raw material origins, and production processes to determine the extent of value added in Vietnam before goods are exported to the US. They are also looking into potential intellectual property rights violations related to software. This move raises the possibility that the White House could soon find further reasons to impose additional tariffs on Vietnam. However, sources indicate that there is currently no substantial evidence to suggest that Chinese goods are being illicitly transshipped through Vietnam to the US. Vietnam has been facing significant risks concerning tariffs from the US, including accusations of transshipping goods for China, intellectual property rights violations, and incomplete enforcement of bans on goods produced by forced labor. A few days ago, the US imposed new tariffs on 60 trading partners related to forced labor conditions. According to the final decision, Vietnam will be subject to a 12.5% tariff, effective from 00:01 EST on July 25 (11:01 AM Vietnam time on the same day). Vietnam has also taken steps to tighten controls on counterfeit goods and intellectual property rights violations after being identified as a top country of concern for intellectual property rights in April. Bloomberg reports that Vietnam has submitted a report of over 3,500 pages to the US Trade Representative's Office (USTR), stating that authorities have handled nearly 20,000 intellectual property rights violations between 2021 and 2025. On July 25, Vietnamese authorities discovered and seized nearly 50,000 pairs of shoes suspected of counterfeiting Nike and Air Jordan brands at a factory in Ho Chi Minh City, based on information provided by US Homeland Security Investigations (HSI). The shipment is estimated to be worth over 100 billion Vietnamese dong, and part of it had already been exported to the US. The issue of trade surpluses and accusations of Vietnam being a transshipment point for China has been discussed extensively between the two countries but has yet to reach a final consensus.