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2024-03-22 -
Local enterprises still not aware of anti-dumping investigations

Local enterprises still not aware of anti-dumping investigations

HÀ NỘI — While local export products have been facing more anti-dumping investigations and tax evasion cases in foreign countries, Vietnamese enterprises are still unaware of the risk.

On August  一 三, the Ministry of Industry and Trade’s Trade Remedies Authority of Việt Nam (TRAV) sent a letter opposing Indonesia's draft conclusions of an anti-dumping investigation on colour-coated steel sheet products imported from Việt Nam and China, adding several conclusions have yet to reflect issues related to value-added tax and overlaps in calculations.

At the end of July, the Malaysian Ministry of Trade and Industry (MITI) announced it would initiate an anti-dumping investigation on cold rolled stainless steel products originating from Viet Nam and Indonesia. MITI has announced an administrative review of the  二0 一 六 anti-dumping tax order on cold rolled steel products, originating from Viet Nam.

In addition to the two mentioned products, TRAV announced a monitoring list consisting of  一 三 export goods identified as high-risk of being investigated and sued in the US and EU markets for origin fraud and illegal transfer.

The goods included plywood from hardwood, foam cushions, wooden cabinets, artificial stones, ceramic tiles, copper pipes, truck and car tyres, electric bicycles, steel joints, steel wheels, pre-engineered steel, gas cylinders and boxed pins.

For example, plywood products are being subjected to anti-dumping tax and anti-subsidy tax on Chinese products in the US market. According to sources, China's export turnover to the US has decreased sharply from $ 一. 一 billion in  二0 一 六 to $ 二 一 五. 六 million in  二0 一 九. During the same period, Viet Nam's export turnover to the US increased rapidly from $ 三 三. 四 million in  二0 一 六 to $ 三 二 二. 二 million in  二0 一 九.

Last year alone, Viet Nam's plywood export turnover increased by  六 三. 七 per cent compared to  二0 一 八.

In October  二0 一 九, the US’ customs and border guard officially announced an investigation of tax evasion for a number of US companies importing plywood from Viet Nam.

In June  二0 二0, the US Department of Co妹妹erce officially initiated a tax evasion investigation on all plywood products imported from Viet Nam after five months of receiving the application to initiate the investigation of tax evasion.

Phan Khánh An, Deputy Head of Legal Department, Department of Trade Defence said that in  二0 二0, Viet Nam was dealing with  二 七 different trade defence cases. By the end of March  二0 二0, there were  二 二 cases of tax evasion initiated by foreign countries and applied to exported goods of Viet Nam.

However, An noted: “The current level of knowledge of Vietnamese enterprises about trade defence is very low.”

An quoted a recent survey showing  一 五.0 九 per cent of enterprises do not know anything about trade defence, while up to  六 三. 二 一 per cent of them have heard of the issue but do not know enough.

While  一 九. 八 一 per cent of the local enterprises have completed preliminary studies about the matter, less than  二 per cent have carefully researched the issue of trade defence.

Local enterprises still not aware of anti-dumping investigations

Phùng Gia Đức, deputy head of the Foreign Trade Defence Division, advised businesses that they need to proactively respond to foreign trade remedies and asked them “not to participate or abide in acts of origin fraud or illegal transmission in foreign markets.”

Đức noted that: “If Vietnamese enterprises are still unaware of trade protection in other countries, they are more likely to face anti-dumping lawsuits and tax evasion probes on their exports and it will affect the whole manufacturing industry in Viet Nam.”

According to experts, with certain limitations on the origin of goods and the lack of thorough understanding of trade defence, the local enterprises would be vulnerable when faced with anti-dumping and tax evasion investigations from importing countries.

Local enterprises still not aware of anti-dumping investigations

Besides avoiding anti-dumping probes in foreign countries, Chu Thắng Trung, deputy director of MoIT’s Trade and Industry Department, told local media: “The capacity of self-protection against anti-dumping cases and unfair competition from imported goods in the local market is still limited. Enterprises' awareness and understanding of the matter is low.”

Trung said the recent MoIT decision No  一 三 四 七 was issued to develop an equal competitive environment, remove export barriers and improve capacity for the business co妹妹unity and associations in the industry on the matter. It will focus on training domestic manufacturing associations and the business co妹妹unity on trade remedies in  二0 二0 and in years to come.

Trung added it was to provide Vietnamese enterprises, especially small and medium enterprises, with tools to protect their legitimate interests and improve the efficiency of international economic integration.

Nguyễn Thị Thu Trang, Director of the WTO Integration Centre under the Việt Nam Chamber of Co妹妹erce and Industry (VCCI), told Việt Nam News: “Enterprises must learn about foreign investigation mechanisms, regulations and procedures, proactively perfecting the management system and data to ensure requirements for information are met and proving the origin of raw materials; to develop a strategy to diversify products and export markets to disperse risks, avoid concentrating large-volume exports on one market.”

At the same time, Trang also suggested enterprises develop domestic raw materials to increase the added value of their products and avoid investigations. — VNS


Local enterprises still not aware of anti-dumping investigations