Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam: Better control on COs needed to avoid trade frauds

Vietnam: Better control on COs needed to avoid trade frauds

Content image - Phnom Penh Post
Vietnamese customs officials check the origin of goods. The state should improve the management efficiency in granting certificates of origin for enterprises, Minister and Chairman of the Government Office Mai Tien Dung has said. PHAP LUAT/VIET NAM NEWS

Vietnam: Better control on COs needed to avoid trade frauds

Vietnam's management efficiency in granting certificates of origin for enterprises needs to be improved to reduce trade frauds, Minister and Chairman of the Government Office Mai Tien Dung has said.

The state should continue to create favourable conditions for enterprises in the production and export of goods in accordance with international commitments in free trade agreements (FTAs), he said.

Deputy Minister of Industry and Trade Tran Quoc Khanh said to deal with fraud, the state should promote and improve awareness of enterprise regulations related to certificates of origin (COs).

Speaking during a meeting at the Vietnam Chamber of Commerce and Industry (VCCI) late last week, Khanh said joining the FTAs will help reduce cases of origin fraud.

This often occurs for goods exported to markets applying self-verification of origin such as US, EU and Canada because these markets do not require enterprises to present certificates of origin.

Relevant agencies such as the Ministry of Industry and Trade (MoIT), the Ministry of Finance, VCCI, the Ministry of Planning and Investment and the General Department of Customs should strengthen cooperation to solve problems relating to COs, Khanh said.

The MoIT also needs to authorise VCCI to issue more CO types under the FTAs so that the MoIT can reduce its workload related to granting COs and strengthen state management in the matter.

At a working day between Prime Minister Nguyen Xuan Phuc’s working team, the VCCI and relevant ministries and agencies on CO and trade fraud of goods origin in Hanoi on Friday, Dung said there was a sudden increase in some goods items exported to the US market and some items imported from China to Vietnam, a report from the General Department of Customs said.

Therefore, the state should have warnings about fraud, counterfeiting and evasion of trade remedies and strengthen close supervision to ensure the economic stability.

Tran Thi Thu Huong, director of VCCI’s Centre for Commercial Document Certification, said they issued more than 472,000 certificates of origin in the first nine months of this year, an increase of 2.4 per cent year-on-year.

Inspections in HCMC

Ho Chi Minh City market management authorities have stepped up efforts to combat contraband, counterfeit goods and trade fraud.

Authorities said smuggling of fake garments, footwear, liquor and beer, and sugar would increase by the end of the year for the festival season.

Relevant city agencies have begun inspections and seized large volumes of contraband items, mainly consumer goods.

Last week, the General Department of Market Management and the city’s authorities inspected 29 shops selling fashion goods at Ben Thanh Market and Saigon Square Trade Centre in District 1.

At 10 shops in Ben Thanh Market, they seized more than 800 items that were suspected of being counterfeit, which carried labels such as Rolex, Dior, Hermes, Gucci, LV and Tag Heuer, as well as 49 bags smuggled into the country.

At Saigon Square, they seized more than 1,000 bags, wallets, watches, scarves, belts and footwear purporting to be Rolex, Hublot, Tag Heuer, Gucci, Chanel, LV and Hermes products for trade fraud. More than 500 watches and belts had been illegally imported.

The inspections are part of a campaign launched by the market management force to prevent the distribution of illegal imports and counterfeits.

A spokesperson for French personal care company L’Oreal recently warned buyers of counterfeit skincare products being sold as L’Oreal.

Counterfeit L’Oreal hair care products are also sold at traditional markets.

Smuggling, illegal imports and trade fraud are rife around the country. In the first ten months of this year, there have been 1,262 violations of customs regulations, mainly fraud trade and smuggling, involving goods worth more than 1.5 trillion dong ($65 million), data from Ho Chi Minh City Customs shows.

Inspections by customs officers after clearance have uncovered tax evasion and collect taxes of more than 149.4 billion dong this year.

The National Customs Bureau has instructed its city office to inspect the origins of goods carefully, and this has helped discover a number of trade frauds.

Last week, customs officers at Cat Lai Port in the city’s District 9 searched and seized four containers destined for South Korea containing aluminium (22 per cent tax rate) which had been declared as steel pipes, which are exempt from tariffs.

To prevent fraudulent declarations of goods origins, the municipal Customs Department has asked its various divisions to draft plans for combating contraband and carrying out inspections after customs clearance.

Customs agencies have also organised training courses in goods origin and brand name frauds for enterprises in the city.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Kingdom’s domestic milk still cannot compete with imports

    Price competition and a lack of confidence by consumers are the main reasons the dairy market cannot compete with imports, said domestic milk producers. The large displays of imported fresh milk at the Kingdom’s supermarkets present a cumbersome obstacle for local producers, they said.

  • ‘Pesticide-laden cucumbers’ kill two, poison 150 in Banteay Meanchey

    At least two youths have died and 243 others are being treated for vomiting, diarrhoea, breathing difficulties, dizziness and muscle weakness after they ate cucumbers suspected to consist of pesticides. The incident happened on Saturday, said Banteay Meanchey provincial police chief Ath Khem. He told The

  • Three dead, 13 injured in collapse at Siem Reap pagoda

    At least three people were killed and more than 10 others injured on Monday after a dining hall under construction collapsed at Prasat Kokchak pagoda in Kokchak commune, Siem Reap province. Provincial police chief Tith Narong said Military Police, soldiers and local volunteers had successfully recovered 16

  • Forest Harmony’s $18M luxury villas break ground in Kampot

    Local and French joint-venture Forest Harmony has broken ground on its $18 million “second-home” Luxury Holiday Villas project in Kampot province. Century 21 Mekong CEO and local shareholder of the project Chrek Soknim told The Post that the project will comprise 90 villa units covering 18ha on a 97

  • China Unicom enters Cambodia

    China Unicom, the country’s largest telecoms operator, has expanded into Cambodia to build optical telecommunication pathways in the Kingdom as part of the Belt and Road Initiative (BRI). The Hong Kong-listed company officially opened its China Unicom (Cambodia) subsidiary on Monday to become the

  • PP-SHV Expressway on track for completion in early 2023

    The construction of the $1.9 billion Phnom Penh-Sihanoukville Expressway, which broke ground at the end of March, is on track to be completed by early 2023, Ministry of Public Works and Transport spokesman Vasim Sorya said on Monday. The 190km high-speed highway linking the capital to the