Businesses' ability to respond to trade defense investigations has improved.

Along with the process of international economic integration, the increase in trade defense investigations against Vietnamese export goods is posing many challenges for businesses. Lawyer Le Anh Van - Director of the Center for Legal Support and Human Resources Development, Vietnam Association of Small and Medium Enterprises had a discussion on this issue with reporters of the Industry and Trade Newspaper.

The capacity of Vietnamese enterprises to respond to trade defense investigations is gradually improving. Photo: VNA

Sir, the number of cases of Vietnamese export goods being investigated for trade defense is increasing. From a lawyer's perspective, can you describe the response capacity of businesses and industries to trade defense investigations from foreign markets in recent times?

It can be said that through observation, we see that in the past 5 years, from 2018 to present, the total number of trade defense cases that Vietnam's export goods have faced has increased sharply, accounting for 65% of the total number of cases in the past 20 years. Many export markets, especially the US, Asia, Africa... have continuously initiated trade defense investigations, so up to now, many Vietnamese products have been sued for trade defense such as steel, aluminum, wood, seafood... which has posed huge challenges for businesses, especially in the effort to expand and approach many potential markets.

However, after the initial setbacks, up to now, it must be noted that through many cases we have successfully appealed, this shows that the trade defense response capacity of Vietnamese enterprises has made important progress, especially in export industries that are most and earliest investigated for trade defense by foreign markets such as the steel industry, the wood industry, and the seafood industry.

However, the response capacity of enterprises, especially domestic small and medium enterprises, is still limited due to weak capital, management, and accounting systems. Small and medium enterprises have not boldly invested much in machinery to improve productivity.

In particular, many businesses have not yet proactively made efforts to apply certificates such as OHSAS on construction of occupational safety and health management systems, FSC certification on forest protection, SMETA on social responsibility... to comply with market regulations. These are difficulties for small and medium-sized enterprises when facing trade defense lawsuits.

Faced with pressure from trade defense investigations, the Ministry of Industry and Trade has actively supported businesses in responding to trade defense investigations from abroad, in which early warning work has been strengthened. What do you think about this support work of the Ministry of Industry and Trade?

Lawyer Le Anh Van - Director of the Center for Legal Support and Human Resources Development, Vietnam Association of Small and Medium Enterprises. Photo: Can Dung

In fact, in addition to the capacity and proactive response of enterprises to trade defense investigations in foreign markets, the involvement of competent authorities, especially the Ministry of Industry and Trade, can be said to play a very important role, contributing greatly to protecting interests and maintaining the flow of Vietnamese goods exports in foreign markets.

In particular, the Ministry of Industry and Trade has been very proactive and active in completing policies and regulations on supporting businesses in trade defense, the Law on Foreign Trade Management, the Law on Competition... and guiding documents have been issued, and at the same time, they have been specified in a number of projects approved by the Prime Minister such as the Project on restructuring the Industry and Trade sector, the Project on strengthening state management of preventing evasion of trade defense measures and origin fraud, the Project on building and effectively operating an early warning system on trade defense.... This is considered the foundation and fulcrum to support businesses in improving their competitiveness, proactively dealing with increasingly diverse and complex trade defense lawsuits from abroad...

In addition, the Ministry of Industry and Trade actively coordinates with relevant ministries and branches to carry out many activities such as early access to businesses in industries at risk and/or under investigation, applying trade defense measures to provide information, helping businesses understand regulations, requirements and investigation procedures; the work businesses need to do; and possible scenarios for businesses.

In some specific cases, the Ministry of Industry and Trade has coordinated with relevant ministries and branches to directly provide information at the request of foreign investigation agencies so that foreign investigation agencies can clearly understand Vietnam's policies and regulations, avoiding drawing unfavorable conclusions for Vietnamese enterprises based on biased and inaccurate accusations.

The Ministry of Industry and Trade also directly intervenes and discusses with foreign trade defense investigation agencies when it finds that the allegations are unfounded or that the investigation activities and conclusions are inconsistent with WTO regulations. If foreign trade defense measures show signs of violating WTO regulations, the Ministry of Industry and Trade will consider bringing the issue to the WTO dispute settlement mechanism.

The above support activities of the Ministry of Industry and Trade, I believe, have brought about very positive results, helping to protect the interests of enterprises as well as maintain the flow of exported goods; avoiding causing disadvantages for exported goods, as well as increasing competitiveness in the market. In particular, it has helped enterprises better understand the regulations on trade defense, from which enterprises have been more aware of preparing early and far in advance for the trend of trade defense investigations of the export market.

In the coming time, to avoid the risks of being investigated for trade defense, what do you think businesses should pay attention to and how should the Ministry of Industry and Trade promote the work of improving the capacity to respond to trade defense for the business community?

Enterprises need to regularly update information on trade defense investigations through Vietnamese trade agencies in exporting countries. Next is information from the Department of Trade Defense (Ministry of Industry and Trade), which is the focal point for all lawsuits. In particular, contact and coordinate with law offices/law firms to organize training courses and regularly update important information on market developments for enterprises.

Although each market will have a different investigation method, the common point that they all aim for in these lawsuits is the raw material and production and sales areas of the business. This is something that businesses need to pay attention to and prepare for from the beginning to have appropriate and effective responses.

Along with that, businesses need to increase innovation, diversify, and improve the quality of export product designs; prepare human resources of businesses with knowledge related to trade defense and related management systems such as monitoring input materials, actual costs, etc. to proactively respond to situations that may occur in import and export activities.

Authorities, especially the Ministry of Industry and Trade, need to continue to improve the legal system on trade defense; at the same time, increase early warnings, support businesses in investigations, and help businesses better understand the legal regulations of each market to respond effectively...

Thank you!

Source: https://congthuong.vn/nang-luc-ung-pho-dieu-tra-phong-ve-thuong-mai-cua-doanh-nghiep-da-co-buoc-tien-349134.html