The policy was announced by Vietnam’s Ministry of Industry and Trade (MOIT) and is in effect from 5 September.
Individuals or organisations that lure, entice or deceive workers for the purpose of exploitation or forced labour could face fines of up to VNĐ75 million (US$2,870).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
It will mean closer supply chain scrutiny, with factories in Vietnam unable to mix or mask unverified raw materials, particularly from locations considered red flags for forced labour.
Importers will also need to provide clear HS codes and proof of origin for inputs, which may result in increased costs that could be passed up the supply chain.
Earlier this year the US announced Vietnam as one of 54 economies that had failed to impose and effectively enforce such an import prohibition and subsequently hit the nation with an additional 12.5% tariff. According to the MOIT, the tariff impacts approximately 37% of Vietnam’s current exports to the US.
In July MOIT said: “The Decree introduces a prohibition on the importation of products and goods that are extracted, produced, or manufactured wholly or in part through forced labour. The issuance of the Decree underscores the Vietnamese Government’s commitment to strengthening the domestic legal framework, fully implementing the conventions of the International Labour Organization (ILO) and other international commitments, and enhancing transparency and sustainability across supply chains.
“Going forward, the Ministry of Industry and Trade will continue coordinating with relevant ministries and agencies to engage with the US on the implementation of bilateral commitments and Vietnam’s progress in strengthening its legal framework governing the prohibition of imports produced with forced labour.
“The Ministry will also continue working with USTR and other relevant US authorities to ensure that Vietnam’s efforts to strengthen and effectively enforce its legal framework are fully reflected, thereby facilitating the application of import tariff measures that accurately reflect Vietnam’s actual circumstances.”
