The USTR is considering levying sanctions against Vietnam for importing illegal lumber for use in wood
furniture and for currency manipulation believed to be harming U.S. industry. Two Section 301
investigations were initiated on October 2nd and may result in additional duties on Vietnamese imports.

The public is invited to comment on the extent of the violations and the impact on U.S. commerce.

Details can be found in Federal Register document number(s) 2020-22270 & 2020-22271

Public comments are due by November 12th, 2020.

Import and Use of Illegal Timber

USTR’s notice claims that in 2019, Vietnam exported $3.7 billion worth of wooden furniture and that
there is evidence that Vietnamese customs officials did not record the origin of timber used as
coming from Cambodia. Evidence suggests that a significant portion of the timber imported was
illegally harvested or traded. Cambodian timber was harvested outside of legal timber concessions
including wildlife sanctuaries. USTR also referred to Vietnam as importing wood from Cameroon and
the Congo which may also have been illegally harvested.

Currency Valuation

Currency undervaluation analysis indicates the VN dong was undervalued by 7% in 2017 and 8.4% in
2018. Undervaluation continued in 2019.