Image Credits: Vietnam Plus
Vietnam’s Ministry of Industry and Trade recently convened with trade offices abroad to address the rising challenges faced by Vietnamese exports under international trade defense measures. The meeting focused on analyzing the increasing instances of anti-dumping and other trade restrictions imposed by foreign countries and discussed proactive strategies to mitigate these impacts.
In recent years, Vietnam has emerged as a significant player in global trade, benefiting from competitive labor and production costs. However, the number of trade defense cases against Vietnamese exports has surged, with 39 cases recorded in 2020 alone, compared to only 50 cases from 2001 to 2011. Since 2001, a total of 257 cases have been documented, including 141 anti-dumping investigations, 37 anti-circumvention cases, and 27 anti-subsidy investigations.
The scope of these investigations has broadened, now including not only traditional export partners but also countries such as Mexico, South Africa, and several ASEAN nations. A diverse range of products is under scrutiny, from high-volume exports like shrimp and steel to lesser-known items such as lawn mowers and paper plates.
Trương Thùy Linh, deputy director of the Trade Remedies Authority, noted that investigations are expanding to include new areas such as product scope and anti-circumvention measures. A significant concern is the potential increase in trade defense tax rates, particularly as some countries, including the U.S., do not recognize Vietnam as a market economy. This situation can result in third-country cost assessments impacting anti-dumping calculations.
Vietnam’s trade offices play a critical role in defending the interests of local manufacturers. These offices are pivotal in relaying information about potential investigations back to the Vietnamese government. Đinh Quốc Thái, General Secretary of the Vietnam Steel Association, emphasized the importance of collaboration between trade offices and domestic businesses. Early warnings from trade offices have proven invaluable, enabling companies to prepare and strategize effectively in response to legal challenges.
In Canada, for instance, trade officials have identified potential upcoming investigations into products like tractors, wind turbines, and upholstered furniture. The Vietnamese trade office in Canada is actively promoting the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to help local businesses navigate trade rules and enhance compliance with origin standards.
As Vietnam continues to expand its export portfolio, the collaboration between trade offices and Vietnamese companies will be essential in navigating complex international trade landscapes and ensuring sustainable growth in export markets.