Vietnam Denies Being Export 'Transshipment Hub' Amid US Trade Talks

Vietnamese President To Lam has revealed that negotiations for a trade agreement between Vietnam and the United States are progressing positively, stating that both sides are "very close" to signing a deal. This announcement followed a meeting with U.S. Trade Representative Jamieson Greer in New York. In an interview with Bloomberg, President Lam also addressed and denied allegations that Vietnam is being used as a "transshipment hub" for Chinese exports, emphasizing that trade must be based on "substantial trade activities, with products actually produced in Vietnam." The U.S. remains Vietnam's largest export market. For the first eight months of 2026, Vietnam's trade surplus with the U.S. exceeded $100 billion, a 22.7% increase year-on-year. This significant surplus has led to Vietnam facing a 20% tariff on its exports to the U.S. President Lam expressed Vietnam's intent to increase imports from the U.S., particularly high-tech products to support domestic manufacturing. However, he also pointed to "some barriers in U.S. export policies" and stated Vietnam's commitment to continue working to narrow these differences. Furthermore, Vietnam has been subject to an additional 12.5% tariff on approximately 37% of its exports to the U.S. since July, following an investigation under Section 301 of U.S. trade law. President Lam urged the U.S. to adopt a comprehensive approach to outstanding trade issues, including those related to Washington's Section 301 investigations. The accusation of being a transshipment point for Chinese goods is a significant concern for Vietnam, as such goods identified as being transshipped to evade tariffs could face duties of up to 40%. President Lam affirmed that Vietnam "does not accept the transshipment of goods," without specifying China or any other country. While the Vietnamese government has repeatedly denied these accusations, the perception persists in some quarters. An analysis by the Lowy Institute in Australia suggests that Vietnam's large trade surplus and its close integration with Chinese supply chains contribute to U.S. dissatisfaction and fuel concerns about it being a transshipment hub. The White House estimates that the U.S. loses $19 billion to $26 billion annually in tax revenue due to goods being transshipped through third countries, including Vietnam. According to Bloomberg sources, U.S. customs officials conducted unannounced inspections in July at several factories in Vietnam linked to China. However, at that time, no significant evidence was found to suggest that Chinese goods were being illicitly transshipped through Vietnam for export to the U.S. market. Regarding potential meetings during his U.S. trip, President Lam indicated that "there may be meetings" with Mr. Trump, though no specific schedule has been publicly announced. Experts note that the relationship between Vietnam and the U.S. faces numerous complexities, including political system differences and economic imbalances, making a formal summit contingent on resolving these issues. Source: BBC Vietnamese