Early warning of trade defense helps sustainable exports

The Ministry of Industry and Trade has stepped up the implementation of the Project to Build and Effectively Operate an Early Warning System on Trade Defense towards Sustainable Exports.

On December 31, 2024, the Ministry of Industry and Trade issued Document No. 10816/BCT-PVTM reporting on the summary of 5 years of implementing the Project on Building and Effectively Operating the Trade Defense Early Warning System (Project 316) to the Prime Minister.

The Ministry of Industry and Trade has stepped up early warnings on trade defense, aiming for sustainable exports. Photo: VNA

Strengthening and perfecting mechanisms and policies

On March 1, 2020, the Prime Minister issued Decision No. 316/QD-TTg approving the Project "Building and effectively operating the Early Warning System on Trade Defense" (hereinafter referred to as Project 316). The Project aims to improve the effectiveness of the international economic integration process, especially when participating in new-generation free trade agreements, building and effectively operating the Early Warning System to monitor, warn and support the Trade Defense Investigation Agency and relevant agencies in investigating and handling domestic and foreign trade defense cases, resolving disputes at the World Trade Organization (WTO), ensuring the goal of protecting domestic production, proactively preventing and responding to foreign trade defense cases, towards sustainable exports.

In the report, the Ministry of Industry and Trade said that, based on Decision 316/QD-TTg, the Ministry of Industry and Trade has developed and issued Decision No. 2074/QD-BCT dated August 5, 2020, proposing a specific action program to implement the tasks assigned in Decision 316/QD-TTg. Based on the action program, functional units under the Ministry of Industry and Trade have implemented activities, specifically:

Regarding the improvement of mechanisms, policies and laws, in recent times, the Ministry of Industry and Trade has proactively researched, reviewed and compared the Law on Foreign Trade Management and related legal documents in the field of trade defense with international agreements and treaties to which Vietnam is a member to improve mechanisms and policies. Thereby, effectively exploiting international agreements and treaties through improving the capacity to investigate, give early warnings and respond to domestic and foreign trade defense cases.

On that basis, the Ministry of Industry and Trade issued Circular No. 42/2023/TT-BCT amending and supplementing a number of articles of Circular No. 37/2019/TT-BCT detailing a number of contents on trade defense measures. In particular, after the research and summary process, on November 15, 2024, the Ministry of Industry and Trade reviewed and submitted to the Government for consideration the issuance of a Decree replacing Decree 10/2018/ND-CP detailing a number of articles of the Law on Foreign Trade Management on trade defense measures. The Ministry of Industry and Trade has also regularly reviewed the provisions and terms of international treaties and international, multilateral and bilateral free trade agreements to which Vietnam is a member in order to promptly compare and make changes to suit the legal status and economic situation of Vietnam, creating favorable conditions for economic trade.

In the field of trade defense alone, the Ministry of Industry and Trade has issued three circulars to guide the implementation of trade defense measures in the Regional Comprehensive Economic Partnership Agreement (RCEP), the Free Trade Agreement with the European Union (EVFTA) and the Free Trade Agreement with the United Kingdom of Great Britain and Northern Ireland (UKVFTA).

To implement Vietnam's strategy on dialogue and advocacy for recognition of a market economy with major trade partners in the new context, the Ministry of Industry and Trade has coordinated with the Ministry of Foreign Affairs and relevant ministries and sectors to combine diplomatic advocacy with dialogue and negotiation so that trade partners will recognize Vietnam as a market economy. Since Project 316 was approved, two more trade partners, the United Kingdom (2023) and Costa Rica (2024), have recognized Vietnam as a market economy.

The Ministry of Industry and Trade emphasized that the work of requesting the United States to recognize Vietnam as a market economy has been urgently and resolutely implemented in accordance with the direction of the Politburo and the Prime Minister. Although the conclusion issued by the US Department of Commerce continues to not recognize Vietnam as a country with a market economy, it has also recorded many positive changes in the Vietnamese economy in recent times.

Currently, the Ministry of Industry and Trade has developed and submitted to the Government a master plan on proposing countries to recognize Vietnam as a market economy in trade defense cases in the 2024-2030 period in September 2024. The Ministry of Industry and Trade has also established a system of information focal points at ministries, branches, associations, and Vietnamese representative agencies in a number of Vietnam's major trade partner markets to provide information, warnings, response, and investigation of trade defense cases to ensure proactive investigation and response to these measures.

Building and operating an effective Early Warning System

Regarding the construction and operation of the Early Warning System, according to the Ministry of Industry and Trade , immediately after Project 316 was approved, the Ministry deployed the application of information technology to build software to analyze, calculate and provide early warning of the risk of trade defense lawsuits against Vietnam's export goods; warn of the risk of foreign goods evading trade defense measures applied by Vietnam; and evaluate the effectiveness of trade defense measures being applied.

The statistical database on import and export of Vietnam's major trading partners has been gradually built and completed. Up to now, this database ensures the exploitation of information on trade exchanges of 38 countries and territories in detail down to each tax line, each partner (including trade with Vietnam) and is updated monthly. The database on domestic and foreign legal systems in the field of trade defense, the database on trade defense investigations in the world are also regularly supplemented and updated.

With synchronously built databases and software, the Ministry of Industry and Trade is currently regularly monitoring the fluctuations of over 300 Vietnamese export products that are likely to be subject to trade defense investigations, thereby periodically issuing warnings for export products at high risk of being investigated so that businesses, associations and state management agencies can proactively prepare preventive measures. According to the warning list updated in December 2024 announced by the Ministry of Industry and Trade, there are 24 groups of products exported to 9 markets at high risk of being investigated for trade defense.

Regarding the improvement of the capacity to use the Early Warning System, in 5 years, the Ministry of Industry and Trade (Department of Trade Defense) has coordinated with localities and industry associations to organize over 100 seminars and training courses on trade defense and early warning, providing knowledge to over 6,000 officials, civil servants, and public employees of ministries, sectors, localities, and enterprises to recognize the risks of trade defense investigations, proactively prevent, avoid, and coordinate to handle lawsuits effectively.

At the same time, the Ministry of Industry and Trade has actively promoted the dissemination of information on trade defense through many forms. Through these activities, the awareness of agencies, enterprises and associations about trade defense cases and the early warning system of the Ministry of Industry and Trade has been significantly improved. Enterprises in many industries such as textiles, seafood, steel, wood, aluminum, rubber, ceramics, cement, honey have had basic understanding of trade defense and how to handle when their goods are at risk of being investigated for trade defense. Localities have had good coordination with the Ministry of Industry and Trade in the process of supporting enterprises in handling foreign trade defense investigations.

In addition, the Ministry of Industry and Trade continues to maintain cooperation activities with foreign trade defense agencies and customs agencies of countries with large export and import turnover with Vietnam to monitor and supervise the import and export situation, prevent fraud and avoidance of trade defense measures for both export and import goods, and maximally protect Vietnam's interests in the process of international economic integration.

In the report, ministries and branches such as the Ministry of Foreign Affairs, the Ministry of Agriculture and Rural Development, the Vietnam Federation of Commerce and Industry (VCCI), the People's Committees of central provinces and cities, and the Associations also reported specifically on the implementation of Project 316.

According to the Ministry of Industry and Trade, although the tasks have been completed and the results achieved as stated in the report by ministries, branches and associations, in the process of implementing the Project, the ministries, branches and relevant units have also encountered certain difficulties. For example, in many localities, the work of disseminating information and knowledge about international economic integration, legal documents related to trade defense and the early warning system has received attention, but the effectiveness has not been as expected.

In addition, most businesses in the province are small and medium-sized, still familiar with traditional business methods, have no awareness or limited awareness of international economic integration and the importance of trade defense in international trade. Therefore, businesses are still indifferent and inactive in participating in training activities, propaganda conferences, and training to improve knowledge about defense.

Some localities have not yet taken advantage of and used effectively the warning information from the trade defense early warning system to serve production and business activities. Therefore, although the early warning system is effective, the capacity to use the Early Warning System is a matter of concern. For industry associations, the resources of the association are thin, the qualifications of enterprises are still limited, so the synthesis, communication of information and guidance for enterprises still face many difficulties.

Based on the report contents, in order to continue implementing Project 316 in the coming time, the Ministry of Industry and Trade respectfully recommends that the Prime Minister assign the Ministry of Industry and Trade, based on the contents of the Project "Building and effectively operating the Early Warning System on Trade Defense" approved by the Prime Minister, to continue developing a plan to coordinate with ministries, branches and localities to implement tasks for the period 2025 - 2030 to enhance the ability to warn and support businesses in trade defense.

Source: https://congthuong.vn/canh-bao-som-phong-ve-thuong-mai-giup-xuat-khau-ben-vung-367543.html