Concerned Vietnam-based exporters are seeking to ensure they comply with a U.S. 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.
Washington accuses China of committing genocide against ethnic Uyghurs and other Muslims in Xinjiang, and herding them into camps. Beijing denies abuses in Xinjiang, but says it had established "vocational training centres" to curb terrorism, separatism and religious radicalism.
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 U.S. 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. A third trade expert who attended internal meetings with U.S. customs officials in recent weeks told Reuters Vietnam had recently been repeatedly mentioned among the countries at highest risk of falling foul of U.S. trade restrictions. The expert declined to be identified due to the sensitivity of the matter.
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