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New anti-dumping warning system protects firms
Viet Nam is setting up a warning system on anti-dumping cases to help domestic exporters, the Ministry of Industry and Trade’s Competition Administration Department (VCAD) recently announced.
The system will aim to warn domestic exporters of potential lawsuits and anti-dumping charges by closely supervising international markets and legal systems. The system will concentrate on key importing countries where anti-dumping regulations are likely to originate, including the EU and the US.
In addition to warnings, the system will also provide analysis, appraisal and recommendations to enterprises facing anti-dumping charges.
According to the VCAD, following Viet Nam’s trade liberalisation and improved competitiveness, exports from Viet Nam have recently been facing a number of trade charges from other countries.
VCAD’s statistics showed that from 1994-2007, 30 trade-related investigations were brought against Vietnamese exports, of which 25 involved anti-dumping.
The VCAD noted that the establishment of the system was indispensable and urgent, as the number of anti-dumping complaints had been increasing sharply.
Other than affecting domestic production and the lives of millions of poor workers and households, trade charges have caused significant impacts on foreign investment to Viet Nam. The VCAD said that several foreign invested firms involved in bicycle, fluorescent lamp and footwear industries have considered shutting down or moving elsewhere in the wake of recent litigation on Viet Nam’s industries.
According to the VCAD, Viet Nam has been at a disadvantage when facing these charges due to its non-market economy (NME) status.
Under the WTO accession commitment, Viet Nam accepted to be considered as an NME for the purpose of anti-dumping investigations until 2018.
Anti-dumping complaints often bewilder domestic businesses, according to the deputy minister of trade and industry, Nguyen Thanh Bien. He noted that local entrepreneurs had weak awareness and limited knowledge of both local and international laws.
Bien said that most WTO member nations have built strong, complex trade barriers with strict requirements on anti-dumping in compliance with WTO terms. Vietnamese entrepreneurs, on the other hand, often do not thoroughly understand anti-dumping regulations of their export destinations or the WTO’s regulations. With limited knowledge, local businesses are easily caught up in anti-dumping lawsuits.
VNS
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