The Ministry of Industry and Trade of Vietnam believes it is necessary to continue strengthening trade remedy warnings for Vietnamese export goods. The increasing number of trade protection lawsuits against Vietnamese export products is forcing businesses to improve their ability to respond to these cases.
Experts suggest that businesses should not only closely monitor lawsuits but also coordinate with relevant management agencies, effectively use warning tools, and develop more proactive response strategies.
According to the Ministry of Industry and Trade, it is necessary to continue strengthening trade remedy warnings for Vietnamese export goods and continue supporting businesses in responding to foreign trade protection lawsuits.
Experts state that improving the ability to respond to trade protection measures is extremely important for Vietnamese manufacturing and exporting enterprises to proactively and timely respond to lawsuits and protect Vietnam’s exports.
Dr. Nguyen Ngoc Ha, Director of the Institute for Innovation Research and Vice President of the Foreign Trade University, said: “In foreign trade protection lawsuits, domestic enterprises still have limitations in coordinating and sharing information with domestic and foreign authorities.” Moreover, businesses’ awareness and resources for trade protection lawsuits are still limited, resulting in businesses not always being able to meet the deadlines set by foreign investigation agencies.
Other difficulties include weak coordination mechanisms and lack of financial mechanisms to handle trade remedy investigation cases.
Ha suggested that the state should improve coordination and establish financial mechanisms to support businesses in handling these cases. The state should also strengthen information and warnings to address the increasing trend of trade remedy investigations.
Furthermore, it is necessary to establish a database to facilitate businesses in querying information about measures and countries implementing these measures on Vietnamese exports.
According to a 2023 survey by the Trade Remedies Authority, 36% of surveyed businesses said they had only done simple research on trade remedies, while only 17% had conducted in-depth research. About 36% of businesses had heard of trade remedies, and 11% knew almost nothing about these lawsuits.
Therefore, businesses should proactively learn and raise awareness about trade protection measures. Additionally, businesses should strengthen coordination with state management agencies to jointly study response methods.
The U.S. Department of Commerce (DoC) has received a request for anti-dumping and anti-subsidy investigations on corrosion-resistant steel (CORE) products. Vietnam is one of ten countries exporting the investigated products. According to the U.S. International Trade Commission (ITC), in 2023, Vietnam exported $242 million worth of investigated steel products to the U.S., accounting for about 7% of total CORE steel exports to that market.
In August 2024, India’s Directorate General of Trade Remedies (DGTR) initiated an anti-dumping investigation on hot-rolled steel coils originating from or exported from Vietnam.
Dinh Quoc Thai, Secretary-General of the Vietnam Steel Association, said: “From 2004 to July 2024, Vietnam’s steel product exports faced 75 trade protection lawsuits, including 43 anti-dumping lawsuits.”
“The domestic steel industry has always been proactive in collecting information and actively cooperating with foreign investigation agencies,” Thai said. At the same time, businesses have established their own value chains to expand export markets.
Thai stated that in addition to equipping themselves with knowledge about trade remedies, steel enterprises also need to control exported products, especially imported raw materials.
As of September 2024, Vietnam has faced more than 250 trade remedy investigations from 24 markets on various Vietnamese export products. Among these, anti-dumping investigations are the most common.
Especially in Asian, African, and Oceanian markets, these countries often investigate and take trade remedy measures against Vietnamese export products to protect their domestic production.
The Ministry of Industry and Trade stated that there have been 136 trade remedy cases from Asian, African, and Oceanian markets, accounting for the majority of the total 253 cases against Vietnamese export goods. Investigated products include construction materials, wood products, chemicals, and agricultural, forestry, and fishery products.
Key Points:
- The Ministry of Industry and Trade of Vietnam emphasizes the need to strengthen trade remedy warnings.
- Businesses need to improve their ability to respond to trade protection lawsuits.
- Experts suggest strengthening coordination mechanisms and financial support.
- Vietnam’s exports face trade remedy investigations from multiple markets.
- Steel products are one of the main subjects of investigation.
- Asian, African, and Oceanian markets are the main sources of trade remedies.
- Businesses should proactively learn and raise awareness about trade protection measures.
