"Made in Vietnam”, Certificate of Origin,Vietnam Detour and Transhipment.

Due to the high tariffs imposed by the U.S. government on goods manufactured in China, American companies with factories there have been seeking ways to circumvent these costs. The straightforward solution would be to relocate production from one country to another, but this option is expensive and not so much fun, particularly for smaller companies with deep-established operations in China.  Consequently, these companies have resorted to creativity by adding a Vietnamese detour—either for a bowl of Pho OR to alter the Certificate of Origin from China to Vietnam. It’s is probably both.

Such transshipment practices are illegal, and the US government has been cracking down on and fining these companies. Additionally, the Vietnamese government has tightened the requirements for obtaining the Vietnamese Certificate of Origin (C/O), enforcing a rule that 30% Local Content Value (LCV) must be contributed by Vietnamese manufacturing.

For labor-intensive industries like textiles and garments, where local materials are readily available, meeting the LCV requirement is relatively straightforward. In contrast, industries that depend on foreign imports, such as gas or electronics for raw materials, this requirement is challenging to fulfill.

Depending on the industry, the complexities vary, but regardless, it is crucial to consult with reputable business attorney.  A knowledgeable lawyer can streamline the process, ensuring it is as smooth and efficient as possible.

( Be sure to consult on how legal practice operates in Vietnam as it is significantly different from US. )