VCCI Submits Comments to the U.S. Trade Representative on Two Large-Scale Section 301 Investigations

VCCI Submits Comments to the U.S. Trade Representative on Two Large-Scale Section 301 Investigations VCCI has submitted comments on the U.S. Section 301 investigations concerning overcapacity and forced labor. Earlier, on March 11 and 12, the Office of the U.S. Trade Representative (USTR) began two large-scale investigations under Section 301(b) of the 1974 Trade Act with several countries, including Vietnam. VCCI states that production and business practices in Vietnam do not exhibit systemic overcapacity. The two investigations relate to systemic overcapacity across manufacturing, processing, and imported goods into the U.S. that use forced labor. On April 15, the WTO and Integration Department, the Legal Affairs Board, and the Vietnam Chamber of Commerce and Industry (VCCI) submitted comments to the USTR, affirming that production and business practices in Vietnam do not exhibit systemic overcapacity and that there is no evidence of forced labor in the production of exported goods as concerns were raised. According to VCCI, under the Enterprise Law and the Investment Law, which form the basis for production activities in Vietnam, enterprises operating in Vietnam do not distinguish ownership origin and operate under the same legal framework, with freedom of business and absolute decision-making over output, inputs, and outputs based on market indicators and enterprise capacity. The recent production expansion reflects an objective global market trend, including rising consumer demand, supply chain restructuring, and waves of international investment. Notably, in key export sectors to the U.S. such as electronics, machinery and equipment, wood products, textiles and footwear, most Vietnamese companies operate under an original equipment manufacturing model for foreign partners. Hence, production is strictly carried out according to quantity, technical standards, and agreed-upon intellectual property requirements. This means output is tightly linked to real market demand and does not create systemic overcapacity. Additionally, VCCI asserts that Vietnamese labor law and practice comply with international standards, including those related to forced labor. In recent years, Vietnam has actively and progressively improved its legal framework to align with international standards, including commitments under new-generation FTAs and ILO conventions (Conventions No. 29 and 105). Vietnam’s Labor Code of 2019 bans forced labor in all forms and guarantees workers' rights to freely choose employment and negotiate working conditions, wages, etc. In practice, these rights are being widely enforced, especially in the manufacturing sector. Based on these arguments, VCCI urges the USTR to conduct investigations prudently, based on complete, up-to-date, objective information that accurately reflects Vietnam's actual production activities. 'An objective conclusion based on evidence will help maintain supply chain stability, bring tangible benefits to businesses and American consumers, and ensure employment for millions of workers in Vietnam's exporting industries,' VCCI emphasizes. Lê Thúy