Businesses maintain market by applying trade defense

Effective use of trade defense measures not only helps domestic manufacturing industries develop sustainably, but also helps export enterprises maintain their position in the international market.

Protect domestic production

Mr. Vu Tuan Nghia, Deputy Head of the Anti-dumping and Subsidy Investigation Department, Trade Defense Department, said that by the end of September 2024, Vietnam had conducted 30 trade defense investigations and was maintaining the application of 22 trade defense measures on imported goods.

The annual revenue of domestic enterprises participating in trade defense cases is estimated at VND475,000 billion. The number of direct employees working at these enterprises is about 36,000 people. Accordingly, the annual budget revenue from trade defense tax is from VND1,200-1,500 billion.

Mr. Dinh Quoc Thai, General Secretary of the Vietnam Steel Association, said that after applying trade defense measures, the production situation of enterprises has significantly improved, ensuring jobs for workers, as well as fulfilling tax obligations to the State. Since then, the competitiveness of the steel industry has also been enhanced.

The sugar industry is also showing the positive impact of trade defense measures. Mr. Tran Vinh Chung, General Secretary of the Vietnam Sugarcane and Sugar Association, said that since anti-dumping and anti-subsidy taxes were applied to sugar imported from Thailand, domestic sugar production has increased from approximately 700,000 tons in the 2020-2021 crop year to nearly 1.2 million tons in the 2023-2024 crop year, an increase of 161%. The revenue of sugar factories has doubled in the same period.

The impact of trade defense measures is not only limited to the business results of sugar factories, but also reflected in the improvement in the income of sugarcane farmers. The average sugarcane purchase price has increased from VND 850,000/ton of sugarcane in the 2020-2021 crop year to approximately VND 1.2 million/ton of sugarcane in the 2023-2024 crop year, an increase of 152%. Farmers have become more confident in their commitment to sugarcane, and the sugarcane growing area continues to expand...

For export industries, the satisfactory handling of trade defense investigations has helped businesses take advantage of and maintain the results brought about by the international economic integration process. To date, Vietnam's exports have faced 263 trade defense investigations from 25 markets. Of these, the leading cases are anti-dumping investigations (144 cases), followed by self-defense cases (53 cases), anti-circumvention of trade defense measures (38 cases) and anti-subsidy cases (28 cases).

Although the number of foreign trade defense investigations into Vietnam's export goods tends to increase, thanks to the initiative of enterprises as well as the active support of the Ministry of Industry and Trade and relevant agencies, many cases have achieved relatively positive results such as enterprises not being subject to trade defense taxes or being subject to low taxes, thereby continuing to maintain the export market.

Businesses need to proactively protect their interests.

According to Mr. Cao Xuan Thanh, Chief of Office of the Vietnam Timber and Forest Products Association, in recent years, the wood industry has had to deal with a number of foreign trade defense investigations. Experience in handling these cases shows that the initiative of enterprises plays a very important role. Enterprises need to assess risks early to have appropriate business strategies and plans. During the process of handling cases, enterprises need to cooperate and provide complete, accurate and consistent data to the investigation agency.

Businesses also need to make maximum efforts in the process of providing information, due to the large amount of information and data required by the investigation agency, while there are time constraints.

Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers, also shared his experiences in handling foreign trade defense investigations in the seafood industry. The seafood industry has been exposed to foreign trade defense investigations from an early stage, with the US anti-dumping investigations on tra, basa fish and shrimp since 2002.

To date, although these products continue to be subject to anti-dumping measures by the United States, many Vietnamese enterprises have enjoyed a 0% tax rate and maintained stable export volumes to the US market. This result is thanks to the perseverance and initiative of enterprises, the activeness of the Association, and the support and coordination of State management agencies.

Mr. Trinh Anh Tuan, Director of the Department of Trade Defense (Ministry of Industry and Trade), said that the spirit and policy of the State is always to encourage and support businesses to maximize their internal strength. The Government has been implementing a series of support policies, from improving competitiveness, minimizing administrative procedures, to enhancing legal advice and support for businesses in trade defense lawsuits.

The Department of Trade Remedies (Ministry of Industry and Trade) always accompanies businesses. In addition, the Department also constantly improves the legal system on trade defense, ensuring that regulations are always consistent with international standards and meet the actual requirements of the market.

The Trade Defense Department has also just completed the implementation of the amendment and development of the Decree replacing Decree 10/2018/ND-CP, which is being appraised by the Ministry of Justice and will soon be submitted to the Government. This is a good legal basis for implementing transparent and clear protection of domestic manufacturing industries. In addition, the Department also strengthens reform and simplification of administrative procedures to facilitate businesses.

In the coming time, the Trade Defense Department commits to continue supporting businesses by perfecting trade defense tools, improving investigation and lawsuit handling capacity; at the same time, promoting international cooperation to enhance protection for domestic manufacturing industries.

According to VNA

Source: https://doanhnghiepvn.vn/doanh-nhan/doanh-nghiep-giu-duoc-thi-truong-nho-ap-dung-phong-ve-thuong-mai/20241015085822043