Vietnam exporters fret over potential trade fallout of US rules on Xinjiang

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Vietnam exporters fret over potential trade fallout of US rules on Xinjiang
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Some industries in Vietnam may be importing, sometimes unwittingly, raw material from Xinjiang – or might find it hard to prove they were not doing so.

HANOI, Vietnam – Concerned Vietnam-based exporters are seeking to ensure they comply with a US ban on imported products using raw materials from China’s Xinjiang as lucrative trade in goods like garments and solar panels comes under closer scrutiny in Washington.

The US Uyghur Forced Labor Prevention Act, which came into force last June, has already halted more than 1,500 shipments to the United States from all over the world worth about $500 million, according to data from the US customs agency. The solar panel sector could be particularly at risk, as it greatly relies on polysilicon for solar cells, whose global production is concentrated in Xinjiang. Alongside other Southeast Asian countries, Vietnam accounts for about 80% of US panel supplies, and Vietnam’s panel exports to the United States were worth $3.4 billion in 2020.

In addition to First Solar, the top solar panel makers in Vietnam are mostly Chinese companies, according to investment consultancy Dezan Shira.

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