Hanoi (VNA) - By the end of September 2024, Vietnamese exports were involved in 263 trade defence investigations, with half of them focusing on anti-dumping, safeguards, and countervailing measures. This increasing trend highlights the challenges faced by Vietnam’s export sector as it integrates into the global economy.
As an open economy, Vietnam has actively negotiated and signed numerous key free trade agreements (FTAs), creating significant opportunities for export growth.
However, the expansion of export volume has been accompanied by a surge in trade defence investigations by foreign markets. Many of these probes involve allegations of circumvention of existing trade defence measures.
In an era where nations are intensifying protectionist policies to safeguard domestic industries, the risk of Vietnamese goods being targeted by trade defence measures, including circumvention allegations, remains ever-present. To maintain a stable and sustainable export flow, it is crucial for Vietnam to improve its capacity to handle such investigations.
Many products subject to trade defence investigations abroad
Statistics from the Trade Remedies Authority of Vietnam reveal that Vietnamese exports have faced hundreds of trade defence cases from 24 markets and territories. These investigations are becoming more stringent, posing significant risks to Vietnamese exporters.
Chu Thang Trung, Deputy Director of the Trade Remedies Authority under the Ministry of Industry and Trade, said trade defence investigations targeting Vietnamese exports are on the rise. As of the end of September 2024, 263 cases had been initiated, half of which pertained to anti-dumping, safeguards, countervailing, and anti-circumvention measures.
Particularly, investigations have targeted a wide range of products, including steel, aluminum, chemicals, plastics, and agricultural and forestry products, especially wood and wood products.
Trung noted that most investigations are linked to products with high export value. For example, the US investigated circumvention of tariffs on wooden cabinets and dressers with exports to this market valued at 3.4 - 3.5 billion USD in 2023. Similarly, it launched an anti-dumping probe into solar batteries, which posted over 4 billion USD in exports last year.
He added recent years have seen an increase in anti-circumvention investigations as global production shifts and foreign markets have claimed Vietnamese goods are bypassing trade defence measures imposed on items from other countries.
Businesses advised to compete on quality, not price
Lawyer Nguyen Thanh Ha, Chairman of the SB LAW Company, suggested that businesses should have a good grasp of international trade defence rules to stay ready to respond to investigations, hire consulting firms while dealing with cases, and work closely with authorities, especially Vietnam’s trade representatives in foreign markets.
Ha also recommended them compete on quality instead of merely focusing on price, explaining that this is a factor of leading importance as they can avoid risk of being subject to investigations and improve Vietnamese goods’ competitiveness in international markets.
To protect the legitimate rights and interests of businesses and ensure sustainable export, Trung noted the Trade Remedies Authority is implementing several key measures including enhancing businesses’ capacity, issuing early warning, and giving policy recommendations to the Ministry of Industry and Trade and the Government to cope with trade defence investigations.
The official emphasised the importance of proactive measures to address trade defence issues, including closer collaboration with exporters to navigate these challenges effectively.
Do Ngoc Hung, Trade Counsellor and head of the Vietnam Trade Office in the US, said the office continues to monitor foreign trade data and collect information from relevant sides to provide early warnings for potential lawsuits. Strengthening relationships with experienced law firms is also a priority to assist businesses in resolving such cases.
Hung said the Vietnam Trade Office in the US leverages various information channels, engages with American partners and agencies, and steps up consulting and expressing Vietnam’s viewpoints and legal arguments. The office also coordinates with the embassy to ensure robust support for ongoing cases./.
