By Sarah Galeski, Counsel, Tilleke & Gibbins –
The current landscape presents a pressing issue significantly impacting businesses in Vietnam: supply chain legislation. If you’re involved in exporting to major markets, understanding these changes is crucial.
The American Uyghur Forced Labor Prevention Act (UFLPA) has reshaped how companies approach their supply chains. Enacted in 2021 and effective since June 2022, this legislation was designed to address serious human rights concerns regarding forced labor in the Xinjiang region of China. Under the UFLPA, any products containing components from Xinjiang—or sourced from blacklisted entities—are presumed to involve forced labor and are banned from import into the U.S.
As of May 2024, the implications for Vietnam have been significant. Data shows that Vietnam has the highest volume of shipments denied entry into the U.S. due to Uyghur forced labor risks.