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Anti-dumping lawsuits hindering exports
In order to create jobs for workers, a lot of businesses are having to lower export prices, which has provided a rod to foreign enterprises for raising anti-dumping lawsuits.
While the export markets have been narrowed, Vietnamese businesses still have to face anti-dumping lawsuits.
Most recently, on April 2, Vietnamese trade counselor in the US informed that Hilex Poly Co., LLC and Super Corporation has filed to the Department of Commerce (DOC) and International Trade Committee (ITC), the raising of the anti-dumping lawsuit against PE plastics bags imported from Vietnam.
Prior to that, India imposed the highest anti-dumping tax rate on fibre imported from Vietnam, China and Thailand. The Canadian Association of Shoe Producers raised a lawsuit against some Vietnamese enterprises, which they believe are dumping soles in the country. Abicalcado, the association of Brazilian shoes industry, asked to carry out a anti-dumping investigation against some shoes sourced from Vietnam.
The lawsuits have clearly not only had an impact on the businesses that are defendants in the lawsuits, but have bad influences on the whole industry, as foreign partners, in order to avoid troubles, may shift to placing orders with exporters from other countries.
Export prices forced down
The most important reason that has been raised regarding the anti-dumping lawsuits is that the export prices of Vietnam’s products are lower than the sale prices of the same kinds in the import countries.
Lam Viet Minh, General Director of 99 Plastic Packaging, whose name is on the list of 59 plastic companies in the lawsuit, said that as exports have been going very slowly, enterprises have to lower the export prices in order to get orders and retain workers.
Minh related that Wal-mart placed an order of 800 containers a month with Vietnamese enterprises (one container has 20 tons of bags). Wal Mart has forced the export prices down to the lowest possible levels, threatening to work with other partners if Vietnamese enterprises do not offer low prices.
Le Quoc An, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that the high tax rate on Vietnam’s fibre proves to be the new trade barrier importers have installed to protect local production.
No solution found
Though many lawsuits have been raised recently, the Ministry of Industry and Trade’s meetings discussing the methods to boost export held recently, the solutions to the lawsuits have not been put on the agenda.
Some enterprises have asked the ministry to organize workshops on anti-dumping lawsuits, where they need consultancy on the lawsuits. However, the enterprises have been told to join the Q&A on the website thitruongngoainuoc.vn set by the ministry last year.
Sources said that the Competition Administration Department, under the ministry, once had the idea of building up the early warning system on anti-dumping lawsuits against Vietnamese enterprises. However, the idea, regrettably, to date, has not become realistic.
vietnamnet, sgtt
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