Firms urged to enhance knowledge, capacity to cope with trade investigations from the UK

Vietnamese exporters to the UK market should enhance their knowledge and capacity to cope with trade remedies investigations.
Firms urged to enhance knowledge, capacity to cope with trade investigations from the UK
Tra fish processed for export. Vietnamese exporters should prepare for trade investigations as Việt Nam is integrating rapidly into the global economy with the enforcement of new-generation free trade deals. — VNA/VNS Photo

Vietnamese exporters to the UK market should enhance their knowledge and capacity to cope with trade remedy investigations as the demand for using trade defense tools by the UK is anticipated to increase along with the rapid growth in trade revenue promoted by the enforcement of the UK- Việt Nam Free Trade Agreement (UKVFTA).

According to the Ministry of Industry and Trade, although Vietnamese enterprises have taken the opportunities arising from the UKVFTA to expand exports to the UK, the potential of cooperation in trade between the two sides remains huge as Việt Nam’s export value to the UK currently accounts for a modest 0.88 per cent of the UK’s total imports.

Chris Milliken, Vice President of the British Chamber of Commerce in Việt Nam, believes that bilateral trade cooperation will be further advanced because the structures of import and export goods of the two countries are complementary rather than competitive.

2021 saw impressive growth in the two-way trade despite the COVID-19 pandemic, as it reached US$6.6 billion, a rise of 17.2 per cent over 2020, making the UK the third largest trade partner of Việt Nam in Europe and ninth in the world.

Việt Nam’s exports to the UK were nearly $5.8 billion last year, up 16.4 per cent. In the first seven months of this year, Việt Nam’s exports to the UK were estimated at nearly $3.5 billion.

The UKVFTA is one among 15 FTAs Việt Nam have participated in. Facing trade remedy lawsuits is unavoidable because trade remedies always accompany international economic integration, according to the Trade Remedies Authority of Việt Nam.

Lê Triệu Dũng, Director of the Trade Remedies Authority of Việt Nam, said that trade remedy was considered an important tool to restrict imports that the World Trade Organisation and FTAs allow members to use under certain conditions.

Dũng said with the impact of international integration coupled with increasing protectionist policies in some markets, the number of trade remedy investigations was anticipated to increase considerably.

As of the end of the first quarter of this year, Vietnamese export goods were subject to 212 trade remedy lawsuits.

Under the UKVFTA, Việt Nam and the UK will follow appropriate procedures for conducting fair and transparent trade remedy investigations and allow interested parties the opportunity to provide their views in anti-dumping and countervailing investigations.

The trade deal also provides for the application of the ‘lesser duty rule,’ and includes provisions to ensure that neither Party may apply multiple safeguard measures to the same good, at the same time.

The UKVFTA contains commitments on the application of bilateral safeguard measures during the first 10 years of entry into force. Bilateral safeguard measures can be implemented to protect a domestic industry if they face harm from import increases as a result of tariff elimination under the UKVFTA.

According to the Trade Remedies Authority of Việt Nam, the UK developed its own trade remedies system after Brexit.

Encountering trade remedy investigations from an import market like the UK could be a difficulty for Vietnamese exporters. The authority urged Vietnamese exporters to regularly monitor and evaluate early warning recommendations for goods at risk of being investigated for trade remedies, which would help enterprises to have appropriate business plans and reduce the negative impact when facing with trade remedies investigations or applications.

Enterprises should also assess the market size and benefits to come up with an appropriate response plan to the trade remedy lawsuits.

In case an enterprise does not cooperate, the UK can use the available data to draw conclusions. Usually, the trade remedy tax rate for non-cooperating enterprises is very high so they might be forced to abandon the market.

Enterprises must also be aware that it would take a lot of time and effort to follow the investigation process. Thus, enterprises should weigh the benefits to decide how to respond to investigations, the authority said.

During the process of responding to the lawsuits, enterprises should cooperate with relevant parties, including the Trade Remedies Authority of Việt Nam and enterprises in the same industry, to develop a plan to cope with lawsuits.

In some cases, Vietnamese export products were imposed lower tax rates than others, which bring certain competitive benefits, the authority stressed.

Source: VNS
vietnamnews.vn

Related News

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

VCN - France is Vietnam's leading trade partner in Europe with bilateral turnover reaching billions of US$/year.
88.8% of import turnover are equipment and raw materials for production

88.8% of import turnover are equipment and raw materials for production

VCN - In the first six months of 2024, import turnover of goods is estimated to reach US $178.45 billion, up 17% over the same period last year. The import structure of goods in the first six months of the year shows a positive signal when up to 88.8% of the total import turnover is the group of goods that need to be imported.
Trade remedies create a fair business environment

Trade remedies create a fair business environment

VCN - The investigation and application of trade defense measures have contributed to protecting and creating a fair competitive environment for domestic manufacturing industries.
Trade disputes are rarely brought to international courts

Trade disputes are rarely brought to international courts

VCN - Stating that trade disputes have a significant impact on import-export activities of businesses, talking to the press, Mr. Tran Viet Anh, Vice Chairman of the Ho Chi Minh City Business Association, made many recommendations for businesses.

Latest News

Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Durian exports forecast to top 3 billion USD in 2024

Durian exports forecast to top 3 billion USD in 2024

Durian exports may surpass 3 billion USD this year, according to Dang Phuc Nguyen, General Secretary of the Vietnam Vegetable and Fruit Association (Vinafruit).
FTA - support to promote pangasius export

FTA - support to promote pangasius export

VCN - The implementation of FTAs ​​always creates favorable conditions for businesses to expand and diversify markets, bringing Vietnamese seafood, including pangasius, to participate deeperly into the global production and supply chain.
Technology increases competitiveness in the logistics race

Technology increases competitiveness in the logistics race

VCN - In the context that the logistics industry in Vietnam is forecast to continue to grow strongly, many businesses are actively applying technology and expanding service chains to take advantage of opportunities and keep pace with the general trend.

More News

MoIT proposes key solutions to cope with rising sea freight prices

MoIT proposes key solutions to cope with rising sea freight prices

The Ministry of Industry and Trade (MoIT) has requested local associations and businesses to coordinate implementing key solutions to promote imports and exports as sea freight rates rise.
Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnam's seaport cargo throughput is set to reach 1.2-1.4 billion tonnes by 2030, with container cargo expected to range from 46.3 to 54.34 million TEUs, according to a detailed plan for the development of seaport groups, wharfs, jetties, buoy berths, and water areas in 2021-2030, with a vision to 2050.
Binh Dinh seeks investment opportunities from Germany, France

Binh Dinh seeks investment opportunities from Germany, France

A delegation from the south central province of Binh Dinh led by Permanent Vice Secretary of the provincial Party Committee Le Kim Toan paid a working trip to Germany and France to explore investment opportunities from July 17-22, reported the provincial Department of Planning and Investment.
Warnings as HRC steel imports continue to increase rapidly

Warnings as HRC steel imports continue to increase rapidly

The amount of imported hot-rolled coil steel in the first six months of this year increased sharply to an alarming level, 1.7 times higher than domestic production.
MoIT warns about international trade fraud

MoIT warns about international trade fraud

Trade experts said that the number of cases was increasing and taking place in all markets from Africa, the Middle East, India to developed countries such as the US, the Netherlands, and Italy.
Enterprises self- renovate to promote exports to the Central region

Enterprises self- renovate to promote exports to the Central region

VCN - Opportunities to cooperate and promote the export of products of Central region enterprises directly into foreign distribution networks and effectively participate in the global production value chain... are assessed to have a lot of potential.
Corporate culture "lighting the way" for sustainable development

Corporate culture "lighting the way" for sustainable development

VCN - The government aims to cultivate and develop numerous business leaders capable of heading strong economic conglomerates by 2030, leveraging their roles to lead and pave the way. To achieve this goal, financial strength alone is not enough; a robust foundation in business culture is essential.
The fast-moving consumer goods industry aims for green and sustainable development

The fast-moving consumer goods industry aims for green and sustainable development

VCN - Vietnam's consumer goods industry currently has the fastest growth rate in the ASEAN region. However, for sustainable development in the future, businesses in the fast-moving consumer goods industry need to aim for green consumption.
Stronger “medicine” needed to help businesses overcome difficulties

Stronger “medicine” needed to help businesses overcome difficulties

Businesses have suggested the Government maintain its support to help them overcome difficulties, recover production and business activities, and promote growth, given the fact that many of them still face difficulties despite the country’s GDP growth rate of 6.42% in the first half of this year.
Read More

Your care

Latest Most read
Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Durian exports forecast to top 3 billion USD in 2024

Durian exports forecast to top 3 billion USD in 2024

Durian exports may surpass 3 billion USD this year, according to Dang Phuc Nguyen, General Secretary of the Vietnam Vegetable and Fruit Association (Vinafruit).
FTA - support to promote pangasius export

FTA - support to promote pangasius export

VCN - According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is considered an important step for the seafood industry to "take off", in which there
Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

France is Vietnam's leading trade partner in Europe with bilateral turnover reaching billions of US$/year.
Technology increases competitiveness in the logistics race

Technology increases competitiveness in the logistics race

VCN - Logistics plays an important role in the entire process from social production, import and export, circulation and distribution to consumption, creating added value, making an increasingly greater contribution to promoting the growth of the country'
Mobile Version