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Vietnam Bans Forced Labor Goods, Faces US Tariffs
9 Sep
Summary
- Vietnam prohibits imports of goods made with forced labor.
- US tariffs impact 37% of Vietnam's exports due to non-enforcement.
- Penalties for exploiting workers for forced labor can reach US$2,870.
Vietnam has implemented a new policy prohibiting the importation of products extracted, produced, or manufactured through forced labor. This decree, effective September 5, 2026, aims to strengthen the nation's legal framework and meet international commitments, including those of the International Labour Organization (ILO).
The policy introduces significant supply chain transparency requirements. Factories must now clearly identify raw materials, especially those from regions flagged for forced labor risks, and cannot mix or mask unverified inputs. Importers will be mandated to provide precise HS codes and proof of origin for their goods.
This move comes after the US designated Vietnam as one of 54 economies failing to effectively enforce import prohibitions on goods made with forced labor. Consequently, the US imposed an additional 12.5% tariff, affecting an estimated 37% of Vietnam's current exports to the US. The Vietnamese Ministry of Industry and Trade (MOIT) is engaging with US authorities to ensure Vietnam's progress is accurately reflected in tariff measures.
Individuals or organizations found to be luring, enticing, or deceiving workers for exploitation or forced labor could face substantial fines, up to VNĐ75 million (US$2,870). The MOIT has stated its commitment to continued coordination with relevant ministries and agencies to address bilateral commitments and enhance supply chain sustainability.
