Trade balance is sustained due to increased customs inspections aimed at preventing clandestine trade activities
In the bustling city of Hải Phòng, the Điền Vũ Port has become a hotspot for smuggling activities, with large-scale illegal export and import operations taking place since 2021. These activities, facilitated by corruption among customs officers, have significantly impacted trade integrity and state budget collection.
Over the past four years, smuggling at Hải Phòng, including Điền Vũ Port, has involved more than 13,000 containers with goods valued at over 1.8 trillion VND (approximately $75.6 million), generating illicit profits over 210 billion VND. Common smuggled items include diesel oil, anthracite coal, cosmetics, food, seafood, and petrol.
Maritime routes, particularly major ports like Nam Hải Điền Vũ, account for more than 50% of the smuggling cases. From mid-2024 to mid-2025, customs authorities handled nearly 900 maritime smuggling cases at Điền Vũ and other ports, resulting in the collection of approximately 76.53 billion VND for the state budget through fines and seizures. Despite this enforcement, smuggling continues to affect market prices and disrupt lawful trade.
Smuggling through e-commerce has also increased, involving health-affecting products such as food, pharmaceuticals, and dietary supplements. This adds complexity to trade regulation.
The corruption scandal involving 14 former Hải Phòng customs officials underscores systemic vulnerabilities, as they accepted substantial bribes to facilitate smuggling operations. This corruption undermines the efficiency of budget collection and damages the port’s reputation as a lawful trade hub.
Temporary suspensions of import/export activities at related regional ports like Nam Định Vu have been implemented to curb smuggling and restore order in trade operations, highlighting ongoing enforcement efforts and challenges in managing smuggling-related disruptions.
On a positive note, the trade balance for July recorded a surplus of $2.29 billion, down 20% from June. Export turnover in July was $42.29 billion, a 7% increase from the previous month. Accumulated revenue in the first seven months is up 9.1% year-on-year. Imports in July rose 9.1% to $40 billion. Accumulated revenue in the first seven months is equivalent to 63.6% of the annual target.
Drug trafficking remains a pressing concern, with customs forces uncovering 22 cases and seizing around 100 kilograms of narcotics in July 2025. From December 15, 2024, to July 14, 2025, the sector handled 125 cases involving 152 suspects, confiscating approximately 2.1 tonnes of drugs.
In conclusion, while the Vietnamese customs authorities are making efforts to combat smuggling activities and corruption, the challenges persist. The ongoing enforcement actions and temporary suspensions of trade activities highlight the need for continued vigilance and reform in the customs sector to ensure a fair and lawful trade environment.
[1] Source: Vietnam News [2] Source: Vietnam Insider [3] Source: VietnamNet Bridge [4] Source: VN Express International [5] Source: Hải Quan Online
- In an effort to combat unlawful activities in the custom sector, Vietnam's financial industry has been exploring the integration of Artificial Intelligence (AI) to enhance trade monitoring and improve the efficiency of tax collection.
- The continued surge in smuggling activities has prompted several industries, including health and finance, to advocate for stricter trade regulations in light of the financial losses and potential health risks associated with these illicit operations.
- As the government focuses on restoring order to the trade sector, there is growing interest in leveraging advanced finance and AI technologies to improve the efficiency of business management and prevent future smuggling and corruption incidents.
