HANOI - Vietnam’s new legal ban on importing goods made wholly or partly with forced labour took effect on September 5. The decree, initially issued on July 22, adds the forced-labour category to Vietnam’s list of prohibited imports under the Law on Foreign Trade Management.

The measure covers products and goods extracted, produced or manufactured wholly or partly through forced labour from enterprises, countries or territories in accordance with relevant international treaties to which Vietnam is a party.

Article 5 of the decree also requires responsible ministers and heads of ministerial-level agencies to publish detailed prohibited-goods lists with HS codes unless existing law already specifies them.

It says goods covered by Appendix I are those whose HS codes and descriptions appear in those detailed lists. Appendix I assigns the forced-labour import category to the Ministry of Home Affairs.

The decree took effect against the backdrop of a U.S. trade dispute over forced-labour import controls.

On June 2, the Office of the U.S. Trade Representative said Vietnam was among 54 economies that had failed to impose and effectively enforce such an import prohibition. Six other investigated economies, USTR said, had prohibitions but had failed to enforce them effectively.

USTR announced final Section 301 action on July 23, placing Vietnam in the group subject to an additional 12.5% tariff on covered products. The measure took effect on July 24 U.S. Eastern Time.

Vietnam’s Ministry of Industry and Trade said the tariff applies to about 37% of the country’s current exports to the United States after products excluded under U.S. law are removed from the measure’s scope.

Vietnam issued Decree 292 one day before USTR announced its final action. On July 25, Foreign Ministry spokesperson Pham Thu Hang said the U.S. decision “does not fully reflect the realities on the ground and Vietnam’s efforts” to prevent and eliminate forced labour, pointing to the new import prohibition.

The Ministry of Industry and Trade said it would continue coordinating with Vietnamese agencies and U.S. authorities so that Vietnam’s legal changes and enforcement progress are reflected in the application of the Section 301 measures.