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.



  • PM to vet NY holiday dates

    The Ministry of Economy and Finance submitted a letter to Prime Minister Hun Sen asking him to formally set a five-day national holiday from August 17-21 to make up for the Khmer New Year holiday in April that was postponed. Finance minister Aun Pornmoniroth sent

  • Cambodia rejects UN rights claim

    Cambodia's Permanent Mission to the UN Office in Geneva on Friday hit back at David Kaye, the UN special rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression after he raised concerns over the repression of free speech and

  • Snaring may spawn diseases

    The World Wildlife Fund (WWF) has warned that snaring of animals has become a crisis that poses a serious risk to wildlife in Southeast Asia and could spawn the transmission of zoonotic diseases to humans. Its July 9 report entitled Silence of the Snares: Southeast Asia’

  • Ex-party leader, gov’t critic named as secretary of state

    A former political party leader known for being critical of the government has been appointed secretary of state at the Ministry of Rural Development, a royal decree dated July 9 said. Sourn Serey Ratha, the former president of the Khmer Power Party (KPP), told The Post

  • Residence cards set for over 80,000 immigrants

    The Ministry of Interior plans to grant residence cards to more than 80,000 immigrants to better keep track of them. The ministry announced the plan on July 10, following the results of an immigration census. “An inter-ministerial committee and many operational working groups have been set up

  • Kingdom produces PPE gear

    Medical supplies from Cambodia have been donated to member countries of the Asian Development Bank (ADB) to assist in the fight against Covid-19, said an ADB report published on July 9. The report stated that the supplies were donated as a response to global efforts to

  • Kingdom, US vow stronger ties

    At an academic forum on Saturday to celebrate 70 years of Cambodia-US diplomatic ties, Cambodian researchers and officials expressed hope of encouraging US investments and for that country to deepen and improve its bilateral relations. Held at the Royal Academy of Cambodia, it reviewed the past 70

  • Fifteen Cambodians from Saudi get Covid-19

    The Ministry of Health on Sunday confirmed 15 more imported cases of Covid. The 15 men ‒ all Cambodian aged 21 to 33 ‒ arrived from Saudi Arabia on Friday via a connecting flight in Malaysia. They were travelling with 79 other passengers, three of them women. The ministry said 80 of the

  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen

  • Kingdom eyes India FTA, China deal set for August

    Cambodia is studying the possibility of establishing a bilateral free trade agreement (FTA) with India to open a new market with the second-largest regional economy. This comes as an FTA with China is scheduled to be signed next month while similar negotiations with South Korea