Vietnam Sourcing: The Transshipment Trap

Vietnam has become the primary beneficiary of the "China Plus One" strategy. However, it has also become a primary node for **Illegal Transshipment**—where Chinese goods are routed through Vietnam to evade US tariffs and UFLPA restrictions.

1. What is Transshipment?

Transshipment (or "Country of Origin Laundering") occurs when goods are made in China, shipped to Vietnam, and re-labeled as "Made in Vietnam" with minimal or no processing.

The Warning Sign:

If a Vietnamese factory exports 50 containers a month but has only 5 employees and no machinery, they are likely a transshipment front (a "Shell Company").

2. High-Risk Sectors in Vietnam

Several industries are under intense scrutiny by CBP due to their reliance on Chinese raw materials.

🪵 Wood & Furniture

Vietnam is a global hub for furniture. However, reports like Sheffield Hallam's "Built on Repression" highlight that PVC flooring and timber often originate from Xinjiang state-owned entities before being finished in Vietnam.

☀️ Solar Panels

Over 90% of Vietnamese solar panels use Chinese polysilicon. The Department of Commerce has previously investigated major manufacturers for circumvention.

⚙️ Aluminum & Steel

Raw aluminum ingots from Xinjiang are often extruded in Vietnam. Importers must trace the metal back to the smelter level.

3. How to Spot a "Shell Factory"

ChainVetter uses 6 forensic checks to identify shells. Here are the red flags you can look for manually: