Vietnam to apply more trade remedies to protect production

Following many successful cases, there is now a growing tendency in Vietnam to apply trade remedies to protect locally made products.



The Ministry of Industry and Trade (MOET) has decided to impose anti-dumping duties of 3.17 to 38.34 percent on some galvanized steel imports from South Korea and China.

The ministry has also decided to apply temporary anti-dumping duties on H-shaped steel imports from China under a supplement import tax of 21.18 to 36.33 percent.

The decision on steel import products was released after state management agencies found the dumping of imports in Vietnam and significant damages to domestic production caused by imports.

According to Nguyen Van Sua, deputy chair of the Vietnam Steel Association, the association and its members had to spend six months and a lot of money to follow the lawsuit against ingot steel and long-steel imports.

Thanks to the MOIT’s decision on imposing anti-dumping duties in March 2016, the situation has improved.

These were two successful lawsuits raised by domestic enterprises against imports. Prior to that, MOIT also imposed anti-dumping duties on imports such as seasoning powder and vegetable oil.

However, lawyers said the number of successful cases is modest compared with the number of anti-dumping lawsuits against Vietnam’s exports in world markets.

A number of Vietnam’s products have anti-dumping duties in overseas markets, including cold-rolled iron sheet, galvanized iron, fiber, catfish and shrimp.

To date, Vietnamese exports have been subjected to trade remedies in over 70 cases with a wide range of products, while Vietnam has taken investigation or applied trade remedies in 10 cases.

Experts said that strengthening trade remedies with anti-dumping, anti-subsidy and anti-countervailing measures is the best way to protect local production against imports in the context of FTAs under which import tariffs are cut to zero percent.

While other countries have been exploiting the measure to protect local protection, Vietnam rarely uses it.

According to lawyer Tran Huu Huynh from VIAC (Vietnam International Arbitration Center), 10 years ago, when Vietnam’s exports began facing anti-dumping lawsuits in overseas markets, Vietnam was advised to use trade remedies as the last resort to protect domestic production.

However, at that time, Vietnamese businesses did not understand the importance of trade remedies, and found it difficult to collect figures and materials to prove damages to their production and business. Many businesses did not want to spend money to hire lawyers.

Huynh said trade remedies will be used more in markets in the world. He advised Vietnamese businesses to consider using the measure if they find their production seriously affected by imports.

Le Thanh Kinh from Le Nguyen Law Firm agreed that Vietnam needs to strengthen measures to protect local production in line with international laws and practice.

Thanh Mai / vietnamnet