Wood enterprises create 'chopsticks bundle' strength to respond to defense

Faced with the frequency of trade defense lawsuits from export markets, Vietnamese wood enterprises have created a 'bundle of chopsticks' to respond.

The frequency of trade defense lawsuits is increasing.

Mr. Ngo Sy Hoai - Vice President and General Secretary of the Vietnam Timber and Forest Products Association - said that the Vietnamese wood industry has developed strongly in recent years. In the past 10-15 years, Vietnam has become a large wood processing center, ranked in the world, in which our interior and exterior wooden furniture has risen to second place after China. In 2024, wood and other forest products will be the 6th largest export industry in Vietnam with an export turnover of nearly 17.3 billion USD, an increase of over 20% compared to 2023.

Wood enterprises have been more proactive in dealing with trade defense investigations. Photo: VNA

According to Mr. Ngo Sy Hoai, because Vietnam has become one of the leading wood product supply centers in the world with a high growth rate, Vietnamese wood products have faced the risk of being investigated for anti-dumping, anti-subsidy and anti-tax avoidance taxes.

Although the industry is behind in facing trade defense lawsuits, the number of trade defense investigations on wood products is currently increasing. The General Secretary of the Vietnam Timber and Forest Products Association said that in 2015, the wood industry had its first "collision" with an anti-dumping investigation from a low-export market, Turkey, and a low-value product, plywood. However, over time, the frequency of trade defense lawsuits on wood and wood products has increased.

In particular, according to Mr. Ngo Sy Hoai, the US market accounts for nearly 57% of Vietnam's wood export value. Therefore, " putting too many eggs in one basket leads to an increasing frequency of trade defense lawsuits from this market, as well as a very worrying risk of being sued " - Mr. Hoai said.

Mr. Ngo Sy Hoai emphasized that “in every misfortune there is a blessing”, in the face of the continuous confrontation of trade defense lawsuits, the need to gather forces to respond to lawsuits from enterprises in the wood industry has also had the opportunity to change. “ Previously, it was very difficult for us to mobilize enterprises to join the association, but since the emergence of trade defense lawsuits, enterprises have proactively registered to create a “combined strength” to respond to trade defense investigations ” - Mr. Hoai said.

Businesses continue to need support from authorities

Recently, in the face of increasing trade defense investigations from foreign markets, Mr. Ngo Sy Hoai said that businesses and the Vietnam Timber and Forest Products Association have received very positive support from authorities including the Ministry of Industry and Trade, specifically the Department of Trade Defense, thereby helping wood businesses overcome a number of lawsuits, investigations, and trade defenses, creating a situation with good results.

With the support of the Trade Defense Department, the Vietnam Timber and Forest Products Association and Vietnamese wood enterprises have prepared themselves to respond to the fact that markets, especially the United States, initiate investigations to impose trade defense measures. Such as: Strengthening the implementation of the due diligence system (DDS), transparent management of the supply chain, applying modern accounting software to ensure traceability of input materials; improving trade defense capacity through training in necessary skills/techniques (opening access accounts, answering questionnaires, commenting, protesting comments, hearings, etc.);

At the same time, research and find solutions to avoid scenarios where tax evasion may be imposed, ensuring origin requirements for exported products. Promote relations with trading partners of the target market to avoid the risk of investigation and tax imposition, ensuring a "win-win" situation where both parties are not harmed. Member businesses strengthen their gathering in industry associations, ensure information sharing, unify actions (answer questionnaires, respond, hire lawyers...) for the benefit of businesses and the entire Vietnamese wood community.

" Wood enterprises highly appreciate the support of the Trade Defense Department in training/coaching to enhance capacity for wood enterprises, technical assistance in trade defense, communication and criticism at the national level when there are incidents " - Mr. Ngo Sy Hoai emphasized.

Mr. Ngo Sy Hoai – Vice President and General Secretary of the Vietnam Timber and Forest Products Association. Photo: Can Dung

After the successful cases, Mr. Ngo Sy Hoai said that promoting international cooperation, signing FTAs, improving political relations, economic diplomacy and trade partners with major markets, especially the United States, plays a very important role in limiting risks and losses from trade defense measures, even signs of trade protectionism, from the destination markets of Vietnamese wood products.

On the other hand, from the experience of the wood industry, according to Mr. Ngo Sy Hoai, in the face of trade defense investigations, businesses cannot stand alone but need to come together, creating a "combined strength" to respond effectively. "We cannot leave all cases to lawyers to handle, because there are many cases of "losing money and getting sick" - Mr. Hoai said.

Assessing the ability of wood industry enterprises to respond to trade defense investigations has improved, however, Mr. Ngo Sy Hoai also acknowledged the fact that many wood industry enterprises are mainly small and medium-sized enterprises with limited resources and lack of "battlefield" experience when entering the international market.

Therefore, in the coming time, Mr. Ngo Sy Hoai suggested that the Vietnam Timber and Forest Products Association should continue to receive support from the authorities, especially from the Ministry of Industry and Trade, and the Vietnamese trade representative agencies abroad, in the face of increasing protectionist trends and the increasing use of trade defense measures by many countries against imported goods. Thereby, contributing to the export of wood and wood products to continue to reap new successes.

In the coming time, the Trade Defense Department will continue to proactively coordinate with relevant ministries and branches to support domestic export enterprises in foreign trade defense cases. Strengthen early warning work to take necessary measures to limit damage from foreign trade defense cases on Vietnamese export goods.

Source: https://congthuong.vn/doanh-nghiep-go-tao-suc-manh-bo-dua-ung-pho-phong-ve-368591.html