Proactively turning danger into opportunity in trade defense lawsuits

The number of trade defense investigations into Vietnam's export goods is increasing. Therefore, businesses need to strengthen their response to "turn danger into opportunity".

Trade defense investigations increase every day

The Department of Trade Defense said that on October 28, 2024, the US Department of Commerce (DOC) officially initiated an anti-dumping (AD) and countervailing duty (CVD) investigation into fiber-cast products imported from Vietnam.

According to data from the US International Trade Commission (ITC), in 2023, Vietnam exported about 50 million USD and accounted for about 9% of the total import of fiber molded products of the US. From the beginning of the year to August 2024, Vietnam exported about 34.5 million USD. The anti-dumping investigation period is from April 1, 2024 to September 30, 2024; anti-subsidy from 2023; the damage investigation period is 3 years (2021-2023).

Recently, the Australian Anti-Dumping Commission (ADC) under the Australian Department of Industry, Science and Resources announced the initiation of an anti-dumping investigation (CBPG) on imported hot-rolled steel bars originating from Indonesia, Malaysia, Thailand, Türkiye and Vietnam.

Mr. Chu Thang Trung, Deputy Director of the Department of Trade Defense (Ministry of Industry and Trade), said that the number of trade defense investigations against Vietnam's export goods is increasing day by day. Accordingly, by the end of September 2024, there were 263 trade defense investigations related to Vietnam's export goods, of which half were anti-dumping, self-defense, anti-subsidy and anti-circumvention investigations.

In particular, trade defense investigations are covering many products, especially metals (steel, aluminum), chemicals, plastics; agricultural and forestry products (wood and wood products). “Most of the investigations are related to products with high export turnover. For example, the US investigation into anti-tax evasion of wooden cabinets and dressing tables, which is a product with an export turnover to the US market of 3.4-3.5 billion USD (in 2023) or the US investigation into anti-dumping of energy batteries, which is a product with an export turnover of more than 4 billion USD (in 2023),” said Mr. Trung.

Notably, according to the leader of the Trade Defense Department, recently, countries have increased investigations against the evasion of trade defense measures due to the shift of production as well as markets accusing goods exported from Vietnam of evading trade defense measures being applied by the market to goods from other countries. If in the past, investigations against the evasion of trade defense measures focused on fraud and failure to declare the correct origin, now the focus is on investigating whether goods produced in Vietnam create much added value or only perform some production stages.

The United States is currently the market that initiates the most trade defense investigations and anti-evasion investigations of trade defense measures against Vietnamese export goods. Mr. Do Ngoc Hung, Commercial Counselor, Head of the Vietnam Trade Office in the United States, said that in October 2024, two Vietnamese products were requested by the plaintiff to be investigated for anti-dumping and anti-subsidy measures. Accordingly, Vietnamese export goods have faced 4 trade defense investigations in less than 30 days from the US market.

According to Mr. Do Ngoc Hung, the United States increased trade defense investigations due to the sharp increase in Vietnam's export turnover to this market. In the first 9 months of 2024 alone, Vietnam's export of goods to the United States reached more than 88 billion USD; in addition, the United States has not yet recognized Vietnam as a market economy, so exported goods are often targeted for trade defense investigations.

Turn risk into opportunity

Mr. Ngo Si Hoai, Vice President and General Secretary of the Vietnam Timber and Forest Products Association, shared that even at the stage of filing a lawsuit, businesses have suffered losses and during the investigation process, businesses are always in a state of "restlessness". If they are taxed at a high rate, it is like being "embargoed" and there is no way to export goods.

In the face of the “wave” of trade defense investigations, businesses are important entities that need to be prepared with knowledge and defense skills. In particular, when being investigated, they need to cooperate and carefully declare full information to the investigation agency, especially not being able to “leave the case entirely” to lawyers.

“Enterprises with trade defense skills will not be blacklisted. Therefore, in times of danger there is opportunity. If we strengthen corporate governance, practice accountability, and produce transparently, businesses will have the opportunity to develop markets and export sustainably,” said Mr. Hoai.

In the coming time, the Trade Defense Department will continue to accompany exporting enterprises in handling foreign trade defense investigations through key programs and activities. In particular, the Department will enhance the capacity of enterprises, implement early warning activities, analyze and evaluate high-risk products for trade defense investigations from markets. At the same time, the Department will deploy activities to advise the Ministry of Industry and Trade and the Government to have effective response policies to trade defense investigations from foreign markets.

On the side of the Trade Office, Mr. Do Ngoc Hung also informed that from the market perspective, the Vietnam Trade Office in the United States is committed to always supporting the legitimate rights and interests of exporting enterprises, providing support within the scope of its functions and tasks so that enterprises can achieve the best results in the lawsuit. At the same time, the Trade Office will always and continue to monitor import-export data, collect information from many related parties to be able to give early warnings of possible lawsuits.

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/chu-dong-bien-nguy-thanh-co-trong-cac-vu-kien-phong-ve-thuong-mai/20241103083520198