Dispute in contract implementation, hundreds of Vietnamese cargo trucks detained in China

Due to disputes between Vietnamese and Chinese enterprises in contract performance and substandard storage of goods, since the beginning of 2023, more than 100 Vietnamese vehicles have been detained in China.

More than 100 Vietnamese cargo trucks were detained in China due to drivers failing to properly take care of the goods or contract disputes.

More than 100 trucks carrying Vietnamese goods were detained in China, due to drivers failing to properly fulfill their responsibilities in preserving goods or contract disputes.

According to information from the Lao Cai Economic Zone Management Board on April 25, recently, the number of Vietnamese vehicles being detained in Hekou (China) has been increasing.

Since the beginning of 2023, more than 100 Vietnamese vehicles have been detained in China.

Through the exchange between Lao Cai Economic Zone Management Board and Hekou Border Gate Management Board (China), some main causes of the above situation were identified.

The first reason is that the driver did not properly fulfill his responsibility in preserving the goods, causing damage to the goods on the vehicle. Because the two parties could not reach an agreement on compensation, the vehicle could not leave the country.

Second, due to a dispute between Vietnamese and Chinese enterprises over contract performance, the Chinese enterprise kept the vehicle and required the driver or vehicle owner to compensate in cash before returning the vehicle to Vietnam.

Faced with the above situation, the Lao Cai Provincial Economic Zone Management Board and the Ha Khau Border Gate Management Board have coordinated to resolve and remove the problem, however, this situation has not been completely resolved.

To prevent Vietnamese vehicles from being detained in China, build a healthy business environment, and avoid causing unnecessary damage to Vietnamese export and transport enterprises, the Lao Cai Provincial Economic Zone Management Board recommends that enterprises participating in import and export at the border gate need to improve the legality and formality of transactions in the purchase, sale, and import and export of goods.

Before accepting to transport goods, transport businesses are requested to ask drivers to clarify the contents and terms of the contract with the Vietnamese shipper regarding the status of goods, vehicles... and the responsibilities of the parties involved when disputes arise on the Chinese side.

According to data from Lao Cai Customs Department, in the first quarter of 2024, 365 enterprises carried out import-export procedures, an increase of 32 enterprises compared to the same period in 2023; the total number of declarations was 11,657, an increase of 1,855 declarations.

Total import-export turnover reached 293.9 million USD, up 41% over the same period, of which, export reached 186.2 million USD, up 41.3%; import reached 107.7 million USD, up 40.5%.

Main export items include: peeled wood of all kinds, dragon fruit, cassava of all kinds, green bananas, footwear, durian...; main import items include: agricultural products, plastic, plastic products, iron and steel and iron and steel products, machinery and mechanical equipment, fertilizers, chemicals, coke, electricity...

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