Vietnamese export goods are being 'collaterally affected' by Chinese goods?

Many Vietnamese industries are facing trade defense or anti-tax evasion lawsuits, causing difficulties for export activities.

Many Vietnamese export industries are being investigated for tax evasion, including exported car tires - Photo: TAN LUC

According to businesses, there needs to be a solution to limit risks soon. Vietnamese goods been targeted for investigation into tax evasion.

After just over 5 months of official investigation anti-dumping Regarding solar panels imported from Vietnam, the US Department of Commerce (DOC) recently issued a preliminary conclusion on the case with a temporary anti-subsidy tax rate for two Vietnamese exporting enterprises of 0.81% and 2.85%.

For companies that do not participate in the questionnaire and do not cooperate, taxes of up to 292.61% are imposed.

Suddenly accused of tax evasion

Not only with the US market (the country that has launched the most investigations), recently Türkiye also issued conclusions on the investigation against anti-dumping tax evasion on solar panels and South Africa initiated an investigation against anti-dumping tax evasion on car tires imported from Vietnam...

All of these cases stem from allegations that products originating or imported from Vietnam are evading anti-dumping taxes currently applied to China.

At a recent export meeting between Vietnamese trade offices and the Ministry of Industry and Trade, the Vietnamese Trade Office in South Africa said that the investigation into imported tire products from Vietnam, Thailand, and Cambodia was initiated due to suspicions of fraudulent origin to avoid taxes.

"They suspect that these tire products originated from China, but somehow transferred to Vietnam and claimed Vietnamese origin to export to South Africa.

Previously, South Africa imposed anti-dumping tax on tires originating from China with a tax rate of up to 69 - 74%" - Vietnam Trade Office in South Africa said.

Also according to this person, export turnover Tires from Vietnam to South Africa have increased sharply (3.5 times), especially after this country imposed anti-dumping taxes on China in July 2023. Specifically, in 2022, the export turnover of tires from Vietnam to South Africa was 5.46 million USD.

However, this figure increased to 19 million USD in 2023 and increased to 20.8 million USD in the first 7 months of this year. This is a sign that makes this country suspect that Vietnam is exporting products originating from China. The above investigation information has caused great concern for many domestic businesses.

Mr. Ngo Sy Hoai, Vice President and General Secretary of the Vietnam Timber and Forest Products Association, said that since 2018, when the US-China trade conflict broke out, Vietnamese wood enterprises have faced many risks of being investigated for anti-dumping and anti-subsidy tax evasion.

In particular, the US has issued a final ruling after more than 2 years of investigation into tax evasion on plywood products.

There are 37 Vietnamese enterprises listed on the "black list", unable to continue exporting to the US. Regarding kitchen cabinets and dressing tables, after nearly 2 years of investigation, the US Department of Commerce recently decided to cancel the tax evasion investigation for this group of products.

Due to being "collateral damage" by Chinese goods?

According to a representative of the Danang Rubber Company, Thai tires exported to the US are subject to anti-dumping taxes of up to 47% because the country's products exported to the US have continuously increased sharply, from only 2-3 million tires per year before the COVID-19 pandemic to about 10 million tires.

"What have we prepared to avoid the above situation, because a series of Chinese tire factories have been invested in and built in Vietnam with increasing capacity. Will Vietnamese goods exported to the US be at similar risk and subject to anti-dumping tax?" - this person worried.

Mr. Nguyen Minh Ke - Chairman of the Vietnam Aluminum Profile Association - said that the aluminum industry has continuously faced many trade defense investigations, especially in the US market. The investigation is partly a consequence of the trade war.

According to Mr. Ke, China is the world's largest aluminum producer, accounting for 60% of global output, so the US and other countries have continuously imposed sanctions on aluminum from this country. Vietnam's aluminum industry has also been affected, with trade defense measures imposed on other countries due to the origin of aluminum from China.

"We recommend that the Ministry of Planning and Investment find solutions to avoid trade defense taxes, and at the same time, consider Chinese aluminum projects more carefully when producing in Vietnam. There must be solutions to limit risks from trade defense and tax evasion for the aluminum industry to develop," said Mr. Ke.

Mr. Nguyen Van Hien - Deputy General Director of Southern Rubber Industry Joint Stock Company (Casumina) - said that Vietnam's tire production activities are being subject to anti-subsidy tax, so he is very concerned about potential risks in exports.

In particular, according to Mr. Hien, there are more and more FDI enterprises Investing in a tire factory in Vietnam on a very large scale, with the risk of avoiding trade defense taxes from other countries, will cause Vietnamese goods to be implicated.

"Casumina produces 1.5 - 1.8 million tires per year, but they produce up to 10 - 20 million tires. Therefore, the Ministry of Industry and Trade needs to have a solution to ensure the harmony of interests and protection of the domestic manufacturing industry" - Mr. Hien suggested.