Vietnamese exporters should be prepared to cope with an increasingnumber of anti-dumping and anti-subsidy lawsuits filed by key exportmarkets, heard a conference held in HCM City on December 6.
Speakingat the event, Nguyen Chi Mai of the Ministry of Industry and Trade'sVietnam Competition Authority, said that Vietnamese exporters have facedan increasing number of lawsuits in recent years.
From 1994-2007, 20 cases of anti-dumping lawsuits were filed against Vietnamese exports. From 2008 to 2012, the number was 19.
Inthe first eight months of this year, two anti-dumping lawsuits werefiled, according to figures from the Vietnam Competition Authority.Since 2008, four anti-subsidy lawsuits have been filed.
Inaddition to the US and the EU, which have traditionally filed thehighest number of such lawsuits, other markets such as the Republic ofKorea, Canada, India, Turkey, Poland, Columbia and Peru have been doingso as well.
Among those markets, Turkey and Indiahave increased their number of anti-dumping and anti-subsidy lawsuits inrecent years.
Countries in the ASEAN region such as Thailand, Indonesia and the Philippines have also begun to file such lawsuits.
Manyexport markets now file twin lawsuits, both anti-dumping andanti-subsidy, against the same product, according to the agency.
Maisaid that two-thirds of the lawsuits focused on the top 15 leadingexports of Vietnam , and three-fourths of the lawsuits were filed byVietnam's major export markets.
Most of the products involved in the lawsuits need manual labourers such as shrimp, fish and footwear and leather.
Maisaid many of these Vietnamese exports have a significantly higherexport turnover than similar exports from other countries, which alsoface similar lawsuits.
The most vulnerable products to such lawsuits are those that developed countries do not have a competitive advantage, she said.
Productsas chemicals, plastic, rubber, steel, iron, textiles, furniture,machinery, tools and equipment, paper, food and farm products are amongthe most "sensitive" and face a high risk of having lawsuits filedagainst them, according to Mai.
Many Vietnamese businessesare not fully aware of the laws related to anti-dumping andanti-subsidy lawsuits, according to the Vietnam Competition Authority.
Another problem facing exporters is the weak auditing and accountancy system in Vietnam .
Many businesses do not store or back up documents, contracts, data, or invoices, creating problems with legal evidence.
In addition, most exporters lack experience in dealing with such lawsuits and have not developed plans on how to react to them.
Companiesalso are not fully aware of the healthy competition and fair trade inmarket economies, and many of them lack awareness of the new challengesthey will face when expanding to other export markets.
Otherhindrances include complicated procedures of lawsuits such asquestionnaires, language barriers, technical terms or jargon in legaldocuments. The strict regulations of export markets are another issue.
Regardingthe anti-subsidy lawsuits against Vietnamese shrimp exports to the US,the slow reaction from the Government in proving that it did notsubsidise exporters caused major problems for companies, Nguyen HuuDung, VASEP vice president, told Vietnam News recently.
However,despite the negative impact, such lawsuits had prompted exporters toreview and improve their auditing and accountancy systems, according toMai.
To cope with lawsuits, exporters should developlong-term, comprehensive strategies for business, investment, marketsand products, she said.
Speaking at the conference, ToThai Ninh of the Vietnam Competition Authority described an earlywarning system that helps Vietnamese exporters predict the possibilityof anti-dumping lawsuits filed by major export markets such as the USand the EU.
The Early Warning System website in bothVietnamese and English was set up last year by the Ministry of Industryand Trade's Vietnam Competition Authority.
The website aims to alert exporters about Vietnamese products that could be subject to trade remedy measures.
Thesystem uses a variety of data sources, sourced mostly from the VietnamCustoms Department and foreign customs agencies. These include dataabout trade, market size and trade measures.
With thewebsite, businesses can prepare for counter-trade measures, includinganti-dumping taxes, and make business production adjustments as well asdeal with investigations conducted by foreign agencies.
Inaddition, businesses can more easily maintain operations in asustainable manner and improve their competitiveness in export marketsby monitoring the website information.
Reliable trade data, advance warnings and consultation services are also available on the website, Ninh said.-VNA
Speakingat the event, Nguyen Chi Mai of the Ministry of Industry and Trade'sVietnam Competition Authority, said that Vietnamese exporters have facedan increasing number of lawsuits in recent years.
From 1994-2007, 20 cases of anti-dumping lawsuits were filed against Vietnamese exports. From 2008 to 2012, the number was 19.
Inthe first eight months of this year, two anti-dumping lawsuits werefiled, according to figures from the Vietnam Competition Authority.Since 2008, four anti-subsidy lawsuits have been filed.
Inaddition to the US and the EU, which have traditionally filed thehighest number of such lawsuits, other markets such as the Republic ofKorea, Canada, India, Turkey, Poland, Columbia and Peru have been doingso as well.
Among those markets, Turkey and Indiahave increased their number of anti-dumping and anti-subsidy lawsuits inrecent years.
Countries in the ASEAN region such as Thailand, Indonesia and the Philippines have also begun to file such lawsuits.
Manyexport markets now file twin lawsuits, both anti-dumping andanti-subsidy, against the same product, according to the agency.
Maisaid that two-thirds of the lawsuits focused on the top 15 leadingexports of Vietnam , and three-fourths of the lawsuits were filed byVietnam's major export markets.
Most of the products involved in the lawsuits need manual labourers such as shrimp, fish and footwear and leather.
Maisaid many of these Vietnamese exports have a significantly higherexport turnover than similar exports from other countries, which alsoface similar lawsuits.
The most vulnerable products to such lawsuits are those that developed countries do not have a competitive advantage, she said.
Productsas chemicals, plastic, rubber, steel, iron, textiles, furniture,machinery, tools and equipment, paper, food and farm products are amongthe most "sensitive" and face a high risk of having lawsuits filedagainst them, according to Mai.
Many Vietnamese businessesare not fully aware of the laws related to anti-dumping andanti-subsidy lawsuits, according to the Vietnam Competition Authority.
Another problem facing exporters is the weak auditing and accountancy system in Vietnam .
Many businesses do not store or back up documents, contracts, data, or invoices, creating problems with legal evidence.
In addition, most exporters lack experience in dealing with such lawsuits and have not developed plans on how to react to them.
Companiesalso are not fully aware of the healthy competition and fair trade inmarket economies, and many of them lack awareness of the new challengesthey will face when expanding to other export markets.
Otherhindrances include complicated procedures of lawsuits such asquestionnaires, language barriers, technical terms or jargon in legaldocuments. The strict regulations of export markets are another issue.
Regardingthe anti-subsidy lawsuits against Vietnamese shrimp exports to the US,the slow reaction from the Government in proving that it did notsubsidise exporters caused major problems for companies, Nguyen HuuDung, VASEP vice president, told Vietnam News recently.
However,despite the negative impact, such lawsuits had prompted exporters toreview and improve their auditing and accountancy systems, according toMai.
To cope with lawsuits, exporters should developlong-term, comprehensive strategies for business, investment, marketsand products, she said.
Speaking at the conference, ToThai Ninh of the Vietnam Competition Authority described an earlywarning system that helps Vietnamese exporters predict the possibilityof anti-dumping lawsuits filed by major export markets such as the USand the EU.
The Early Warning System website in bothVietnamese and English was set up last year by the Ministry of Industryand Trade's Vietnam Competition Authority.
The website aims to alert exporters about Vietnamese products that could be subject to trade remedy measures.
Thesystem uses a variety of data sources, sourced mostly from the VietnamCustoms Department and foreign customs agencies. These include dataabout trade, market size and trade measures.
With thewebsite, businesses can prepare for counter-trade measures, includinganti-dumping taxes, and make business production adjustments as well asdeal with investigations conducted by foreign agencies.
Inaddition, businesses can more easily maintain operations in asustainable manner and improve their competitiveness in export marketsby monitoring the website information.
Reliable trade data, advance warnings and consultation services are also available on the website, Ninh said.-VNA
