The requirement for full supply chain transparency is becoming a vital condition for goods originating from Vietnam to avoid the latest trade sanctions from the US market.

The Department of Domestic Market Management and Development (Ministry of Industry and Trade) stated that on July 23, the US President signed a Memorandum requiring the Office of the United States Trade Representative (USTR) to conduct investigations under Section 301 into 60 economies, including Vietnam.

This move aims to examine whether these countries have enacted and effectively enforced bans on importing goods produced entirely or in part using forced labor.

The Memorandum stipulates a 10% tariff rate on goods from certain economies that already possess prohibition mechanisms, have committed to establishing prohibition mechanisms, or have applied partial measures to prevent goods with forced labor elements. For the remaining economies, the USTR is directed to apply Section 301 tariff rates at 12.5%.

Under this classification, goods originating from Vietnam fall into the group subjected to the 12.5% tariff rate, except for products exempted under the Annex of the Memorandum.

Notably, US regulations emphasize goods produced "entirely or in part" using forced labor. This implies that risks lie not merely in the final manufacturing phase but can also arise from raw materials, components, semi-finished goods, or any stage within the supply chain.

According to the Department of Domestic Market Management and Development, in that context, origin traceability becomes an essential requirement for enterprises to prove products do not utilize forced labor throughout the entire production chain.

For sectors with multi-tiered supply chains such as textiles and garments, footwear, electronics, energy, or agricultural products, enterprises need the capacity to identify raw material origins, suppliers, production sites, and processing stages forming the product.

On June 11, the Ministry of Industry and Trade issued Circular 31/2026 regulating origin traceability of products and goods under the Ministry's scope of management. The Circular applies mandatorily to high-risk commodity groups while encouraging other enterprises to voluntarily implement it.

According to regulations, enterprises can declare directly on the Ministry of Industry and Trade's Product Traceability System at VeriGoods.vn or construct internal traceability systems capable of connecting and sharing data with the Ministry's system.

The Department of Domestic Market Management and Development recommends that production, business, and export enterprises proactively review and standardize origin traceability systems across the entire supply chain ahead of changes in US trade policy.

According to this agency, enterprises need to map supply chains, maintain complete records regarding raw material origins, classify suppliers according to risk levels, standardize traceability data per shipment lot, and tightly control origin to avoid risks of being deemed as transshipped or circumventing trade measures.

Enterprises also need to prepare documentation to promptly supply when regulatory agencies or import partners request verification.

According to this agency, standardizing origin traceability systems not only helps enterprises satisfy export market requirements but also contributes to risk management, elevating the prestige of Vietnamese goods and increasing accessibility to international markets.

Source: Bao dien tu Dan tri