Firms need to be cautious about exporting to China

According to the Agency of Foreign Trade under the Ministry of Industry and Trade, the Commercial Counselor of Vietnam in China recently has had tip-offs and warnings about possible risks Vietnamese enterprises might encounter when exporting to Chinese market.

Currently, export turnover to China’s market has always posted strong growth. Agro-forestry-aquatic products have many advantages thanks to a preferential tariff of zero percent in accordance with the free trade agreement between the ASEAN and China.

However, in order to reduce risks, the Commercial Counselor of Vietnam in China warned Vietnamese enterprises that before doing business at this market they should seek support from trade offices, trade office branches and trade promotion agency to look for suitable and prestigious partners in China as well as verify their Chinese partners’ capacity, especially the ones they found in the Internet. 

All transactions with Chinese enterprises must be implemented in the form of contracts in according to normal international trade practice with terms of transactions and dispute resolution being unified and highly binding.

In the past, Vietnam mainly exported goods into China via unofficial cross border trade. Now, the Chinese Government has had changes in policy for export companies which officially export to China, including reduction in import tariffs and no gap between export by road and by sea. It also tightens control on product quality, origin and other elements relating to product quality at the border gates.

Therefore, firms should actively study import regulations of China on the products that they plan to export. At the same time, they should improve product quality and model and update regulations on product quality and consumers’ taste of each place.