Countries Increase Trade Defense With Vietnam | Finance – Business

10/26/2020 Business, Vietnam, World



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$ 12 billion in affected merchandise

In the report on the implementation of the National Assembly resolutions on specialized supervision and questioning in the field of industry and commerce just sent to the members of the National Assembly, the Ministry of Industry and Commerce said that Vietnam is the fourth country to be applied. Many trade defense measures (PVTM) are used around the world. The products under investigation of PVTM are advantageous Vietnamese items such as aluminum, steel, shellfish, plywood, building materials …

The Ministry of Industry and Commerce said it has built a system to monitor the import and export situation of some important commodities with high-volume partners, and analyze data and information from different sources, from there. identifying the risk of Vietnam export goods being investigated, applying PVTM measures, as well as the sudden increase in imported goods, causing damage to domestic production. The ministry has also published a list of early warning products that includes 13 items exported to 3 markets in the US, the EU and Canada. This list will be updated periodically, expanding both products and markets according to the practical situation and will be published on the Ministry’s website for companies to follow.

According to the report, at the end of September, the Ministry of Industry and Commerce has registered and managed 193 foreign trade photovoltaic cases applied to Vietnam, including 108 anti-dumping cases, 22 anti-subsidy cases, 23 tax evasion cases, 40 self-defense cases. . In the last 9 months, the total number of investigations recently initiated on goods exported from Vietnam is 31 cases, almost 2 times more than the entire case initiated in 2019. Markets regularly investigate PVTM with Vietnam exports are the United States, EU, India, Canada and Australia. 62% of the investigated cases come from these countries. However, recently ASEAN countries are also actively investigating PVTM with Vietnam, and the rate rises to 20%.

Exchange with Youth, Mr. Trieu Dung, Director of Vietnam Department of Commerce and Industry (Ministry of Industry and Commerce), said that since the first incident in 2003 until now, the cases initiated by the investigation have affected Vietnam’s exports about 12 billion dollars.

“The 12 billion dollar figure is not a damaged or lost Vietnamese product, but a relative calculation based on the export turnover of those items in the previous year. For example, when the US initiated an investigation with Vietnamese shrimp products, 80% of the turnover of this item was still exported to the normal US market, not all of the affected shrimp, “explained Dung.

However, Mr. Dung said, we have successfully appealed, that is, not subject to tax, completed the application of measures, for 65/151 cases. Many products such as seafood, steel and wood, despite the application of PVTM, many companies (companies) are only subject to 0% or very low tax rates, which helps to maintain and grow exports, especially to other Large market such as US, EU, Canada.

“Living with” demands

According to an expert in international trade, the increasing number of cases of PVTM is understandable, not only in the context of increasing protectionism in the world, but also in proportion to the volume of business. Vietnam import and export. “We have to understand that when a country initiates a PVTM investigation with a certain product, it means that the import turnover of that item increases rapidly, putting pressure on its domestic production. Therefore, the positive side is that Vietnamese goods are exported a lot, if they increase rapidly they will be investigated for defense “, he analyzed, and emphasized that” this is a buoy to protect the national production “of Other countries and, in fact, Vietnam It also applies this tool to the fertilizer industry, steel production, fiber …

Mr. Trieu Dung admitted that the number of PVTM initiation cases involving Vietnamese products has certainly increased. But on the contrary, the management agency also recommended that domestic manufacturing companies when they see foreign products show signs of evasion and government subsidies also require an investigation to protect domestic production.

According to Mr. Dung, the good news is that domestic companies have been very proactive since hearing the news that overseas companies started investigations. Mr. Dung said that in the past, when many companies came to work to support procedures and explain investigation cases, they were “dumbfounded, not understanding why.” But so far, almost every week, every month, the PVTM Department has received job proposals from associations to learn about the risk of being investigated, including low-risk assets.

“In the last 3 months, we have worked with 12 associations, industries of rubber, ceramics, wood…, some associations do it 2-3 times. They asked the Department to invite US experts to speak on vulnerable behavior subject to defense investigation, ”said Mr. Trieu Dung.




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