Businesses need to pay more attention to trade defense

To date, there have been 234 trade defense cases investigated by foreign countries against Vietnam's export goods; by June 2023, 18 export items are on the warning list of risks of trade defense investigation. This is an inevitable consequence of the international economic integration process, especially when Vietnam has signed and is implementing many free trade agreements (FTAs), helping exports grow strongly.

Paying attention and focusing on trade defense will help businesses and industries avoid risks in export activities. Photo: VNA

Although Vietnam's trade defense work was implemented later than many other countries, it has made great progress in implementing this field. Accordingly, in 234 trade defense cases investigated by foreign countries against Vietnam's export goods, many cases have achieved positive results, our enterprises are not subject to taxes or are subject to taxes at low levels, creating export advantages for Vietnamese enterprises. Regarding the activities of resolving trade defense disputes at the World Trade Organization (WTO), 4/5 cases have brought positive results for Vietnam.

Along with the proactiveness and positivity of state agencies, it can be said that the domestic business community has also made encouraging progress in trade defense. Regarding the wood industry, Mr. Ngo Sy Hoai - Vice President and General Secretary of the Vietnam Timber and Forest Products Association said that after stumbling and extreme difficulties in pursuing anti-dumping lawsuits, many businesses in the wood industry have "matured" and have a clearer understanding of trade defense measures.

From the perspective of the trade defense enforcement agency, Mr. Chu Thang Trung - Deputy Director of the Trade Defense Department, Ministry of Industry and Trade also said that normally, businesses are not as interested in trade defense measures as other issues. However, when the goods of the business or the industry are the subject of investigation and application of trade defense measures, businesses begin to pay attention and react.

According to the records of the Department of Trade Defense, the current reaction of enterprises is different from the previous time. Previously, when enterprises were investigated and applied trade defense measures, they did not react or were afraid to react, respond or provide information to protect their interests. Enterprises also proactively coordinated with the Department of Trade Defense to receive support, advice on processes and procedures to participate more actively, provide information to the investigation agency, and at the same time, they were no longer passive but proactive in handling trade defense cases in a way that had less impact on enterprises.

Mr. Chu Thang Trung said that trade defense measures are applied relatively commonly, however, compared to other countries, Vietnam is not the leading target of trade defense measures that countries conduct investigations. However, because trade defense is currently an inevitable trend in international trade development, the risk of investigation and application of trade defense measures to some product lines and markets will continue to increase.

Therefore, in the context of Vietnam continuing to proactively and actively participate in FTAs, trade defense is a content that needs to be paid more attention by the business community to be able to effectively take advantage of tax reduction incentives from the agreements while still avoiding being investigated and applying trade defense measures. " This helps businesses that have not yet encountered the risk of lawsuits to grasp the basics to be proactive and know what to do, " Mr. Trung emphasized.

In addition, the Trade Defense Department recommends that businesses should strengthen corporate governance, clear, transparent and scientific accounting management. Because the important factor in investigating and applying trade defense measures is that foreign investigating agencies will review and check the financial accounting books of businesses to determine whether or not there are unfair competitive practices such as: dumping, receiving subsidies..., thereby serving as a basis for applying trade defense measures. At the same time, it is necessary to regularly exchange, cooperate and coordinate with each other and with the Association, state management agencies so that when actual incidents occur, businesses have the best support.

With its current functions and tasks, according to Mr. Chu Thang Trung, the Trade Defense Department is striving to support and accompany businesses and industries in the process of international economic integration. In particular, the Trade Defense Department has regularly monitored and provided a warning list of some export items at risk of being investigated for trade defense, investigated for evasion of trade defense measures and origin fraud. Thereby, contributing to supporting relevant associations and businesses to proactively develop production and export strategies, prepare resources, and develop response plans in case of incidents.

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