Reuters writes, citing its sources, that Vietnam is ready to take tough measures against Chinese goods supplied to the United States through its territory and tighten controls on exports to China. By doing so, Vietnam hopes to avoid punitive tariffs the United States imposes.
The proposal came after senior US officials expressed concern that Chinese goods are being shipped to America with "Made in Vietnam" labels, which imply a reduction in tariffs.
In recent weeks, Vietnam has tried to compensate for US trade dominance by offering concessions. However, instead, the US has imposed a 46% tariff as part of President Trump's "Liberation Day" measures. Although the tariff was suspended for 90 days, it was decided to start bilateral talks after a meeting between Vietnam's deputy prime minister and the US trade representative.
Vietnam hopes to reduce tariffs to 22% and 28% or even lower.
The Vietnamese government has said it will crack down on "trade fraud" but has not provided details.