Why more than 100 Vietnamese means of transport detained in China?

VCN - From the beginning of 2023, in Lao Cai area, there have been more than 100 Vietnamese means of transport detained in China.
More efforts needed to maintain export growth to China: Insiders More efforts needed to maintain export growth to China: Insiders
Vietnam has a trade deficit of over US$17 billion with China Vietnam has a trade deficit of over US$17 billion with China
Notice for businesses exporting watermelons to China Notice for businesses exporting watermelons to China
Import and export activities of goods through international land border gate No. II Kim Thanh, Lao Cai. Photo: T.Binh
Import and export activities of goods through international land border gate No. II Kim Thanh, Lao Cai. Photo: T.Binh

According to information from the Lao Cai Economic Zone Management Board on April 25, the number of Vietnamese vehicles illegally stored in Hekou (China) has been increasing.

Unofficial statistics from this agency show that from the beginning of 2023 alone, there have been over 100 Vietnamese transport vehicles detained in China.

Through research and discussion between the Lao Cai Economic Zone Management Board and the Hekou Border Gate Management Board (China), there are two main causes of the above situation.

Firstly, the driver did not properly carry out his responsibilities in preserving the goods, causing damage to the goods on the vehicle, because the two sides could not reach an agreement on compensation, leading to the situation that these means of transport are unable to exit to the home country.

Secondly, due to a dispute between Vietnamese and Chinese enterprises over contract implementation, the Chinese enterprises kept the vehicle and required cash compensation from the driver, then release the means of transport to Vietnam.

Faced with the above situation, the Lao Cai Provincial Economic Zone Management Board and the Hekou Border Gate Management Board have actively coordinated together to resolve the problem, but this situation has not been completely resolved.

To prevent Vietnamese vehicles from being detained in China, build a healthy business environment, and avoid causing unnecessary damage to Vietnamese export enterprises and transportation enterprises, the Management Board Lao Cai Provincial Economic Zone Authority recommends that businesses involved in import and export at the border gate need to improve the legality and compliance in commerce transactions.

Before transporting goods, drivers are requested to clarify the contents and terms of the contract with the goods owner in Vietnam regarding the condition of goods, vehicles, etc., and the responsibilities of the stakeholders when a dispute occurs on the Chinese side.

According to Lao Cai Customs Department, in the first quarter of 2024, there were 365 enterprises carrying out import and export procedures at the unit, up 32 enterprises year-on-year; the total number of declarations reached 11,657, an increase of 1,855.

In particular, total import-export turnover increased sharply by 41% to US$293.9 million. Of which, exports rose 41.3% to US$186.2 million, and imports rose 40.5% to US$107.7 million.

Main export items include: all kinds of peeled wood, dragon fruit, all kinds of cassava, green bananas, shoes, durian...; Main imported items: agricultural products, plastic, plastic products, iron and steel and iron and steel products, machines and mechanical equipment, fertilizers, chemicals, coke, electricity.

By Thai Binh/ Huyen Trang

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