Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Vietnam is facing an increasing risk of tradedefence lawsuits as exports expand after the country's active internationalintegration and participation in free trade agreements (FTAs).
Most recently, the US Department of Commerce officially announced it wouldinitiate an anti-dumping investigation on polyester texture yarn (PYT) importedfrom Malaysia, Indonesia, Thailand and Vietnam.
Vietnam’s PYT export to the US increased from 490,000 USD in 2017 to 4.5million USD in 2019, making up 8.7 percent of the US’ PTY import in the periodfrom September 2019 to August 2020.
Steel, which had an average export value of 4.2 billion USD per year, was theproduct facing the most trade defence lawsuits.
The Ministry of Industry and Trade’s statistics showed that Vietnam faced 30trade defence lawsuits in the first nine months of this year, compared to just10 in the same period last year. Among them, there were six cases related tosteel. The investigations were mainly initiated by the US, India, Turkey,Canada and Australia.
According to Deputy Minister of Industry and Trade Tran Quoc Khanh, Vietnamparticipated in 14 FTAs, pushing the country’s exports from 15 billion USD in2001 to nearly 100 billion USD in 2011, with exports expected to reach 270billion USD this year.
The ministry said that the main cause for the increasing number ofinvestigations targeting Vietnamese exports is their rapid increase.
Many Vietnamese products were creating significant competition in importingmarkets, meaning industries in foreign countries were requesting investigationsand applications of trade defence instruments.
The problem was that while there was an increasing risk of measures fromimporting markets, Vietnamese enterprises were still not well aware of tradedefence policies.
Phan Khanh An from the ministry’s Trade Remedies Authority of Vietnam, said arecent survey showed about 15 percent of enterprises did not know anythingabout trade defence, only two percent were well aware of the issue, while therest had heard about trade defence but did not understand it enough.
An said that many Vietnamese exporters did not know that their products wereunder investigation for trade defence measures or faced higher tariffs.
According to Phan Mai Quynh from the Vietnam Trade Remedies Authority,Vietnamese enterprises should not be afraid of such measures but participateactively in the investigation process, such as answering questions byinvestigators and preparing documents as requested.
She said that the active cooperation of enterprises made up 90 percent of theresults of the investigation.
She also urged enterprises to develop advanced and modern management systemswith clear records as well as having legal departments to study traderegulations.
In addition, enterprises should actively cooperate with industry associationsand State management agencies to cope with trade defence lawsuits./.
Most recently, the US Department of Commerce officially announced it wouldinitiate an anti-dumping investigation on polyester texture yarn (PYT) importedfrom Malaysia, Indonesia, Thailand and Vietnam.
Vietnam’s PYT export to the US increased from 490,000 USD in 2017 to 4.5million USD in 2019, making up 8.7 percent of the US’ PTY import in the periodfrom September 2019 to August 2020.
Steel, which had an average export value of 4.2 billion USD per year, was theproduct facing the most trade defence lawsuits.
The Ministry of Industry and Trade’s statistics showed that Vietnam faced 30trade defence lawsuits in the first nine months of this year, compared to just10 in the same period last year. Among them, there were six cases related tosteel. The investigations were mainly initiated by the US, India, Turkey,Canada and Australia.
According to Deputy Minister of Industry and Trade Tran Quoc Khanh, Vietnamparticipated in 14 FTAs, pushing the country’s exports from 15 billion USD in2001 to nearly 100 billion USD in 2011, with exports expected to reach 270billion USD this year.
The ministry said that the main cause for the increasing number ofinvestigations targeting Vietnamese exports is their rapid increase.
Many Vietnamese products were creating significant competition in importingmarkets, meaning industries in foreign countries were requesting investigationsand applications of trade defence instruments.
The problem was that while there was an increasing risk of measures fromimporting markets, Vietnamese enterprises were still not well aware of tradedefence policies.
Phan Khanh An from the ministry’s Trade Remedies Authority of Vietnam, said arecent survey showed about 15 percent of enterprises did not know anythingabout trade defence, only two percent were well aware of the issue, while therest had heard about trade defence but did not understand it enough.
An said that many Vietnamese exporters did not know that their products wereunder investigation for trade defence measures or faced higher tariffs.
According to Phan Mai Quynh from the Vietnam Trade Remedies Authority,Vietnamese enterprises should not be afraid of such measures but participateactively in the investigation process, such as answering questions byinvestigators and preparing documents as requested.
She said that the active cooperation of enterprises made up 90 percent of theresults of the investigation.
She also urged enterprises to develop advanced and modern management systemswith clear records as well as having legal departments to study traderegulations.
In addition, enterprises should actively cooperate with industry associationsand State management agencies to cope with trade defence lawsuits./.
VNA
