Pushing-up exports followed by risks of “escalating” Trade remedy lawsuits

VCN – The more rapidly export increase, the more risks it is forecasted to be faced. In deep concern, diversifying export markets, regularly updating early warning information ... are important solutions enabling businesses to effectively respond to trade remedies.
Vietnam’s aquatic product exports to China to grow this year: official Vietnam’s aquatic product exports to China to grow this year: official
Raw material shortage threatens exports Raw material shortage threatens exports
Attaching social responsibility to businesses to reach further Attaching social responsibility to businesses to reach further
Pushing-up exports followed by risks of “escalating” Trade remedy lawsuits
To minimize the risk of facing trade remedy lawsuits, enterprises need to diversify products and export markets to spread risks. Photo: N.Thanh

Anti-circumvention investigation increased

According to the latest information from the Trade Remedies Department (Ministry of Industry and Trade), by the end of the first quarter of 2022, Vietnam's exported goods have been the subject of 212 foreign trade remedy investigation cases.

Along with the process of extensive international economic integration, especially participating in FTAs, Vietnam's import-export turnover has increased sharply year by year. If in 2001, the import-export turnover of Vietnam only reached more than 30 billion USD, in 2011 it reached 200 billion USD; in 2021 will reach 668.5 billion USD. Particularly, exports increased from 15 billion USD in 2001 to more than 96 billion USD in 2011 and reached 336 billion USD in 2021.

With such results, Vietnam has become one of the 20 economies with the largest commercial scale in the world. Export has become an important engine for economic growth. However, in addition to such favors, Vietnam's export enterprises are increasingly likely to become the subject of investigation and application of trade remedies

Talking to a reporter from Customs Magazine, Ms. Pham Chau Giang, Deputy Director of the Department of Trade Protection said: "Along with the development of global trade, trade remedies are also being used more and more by countries. Even, many countries consider trade defense as a ‘safety valve’ in foreign trade policy to stabilize domestic production and protect workers' jobs. The markets with high frequency of investigation are the US, India, Turkey, EU, Australia and Canada.

Notably, out of 212 cases of foreign trade remedy investigation, cases of anti-circumvention investigation accounted for 25 cases and have increased in recent times, especially in the context of the US-China international trade conflict and when Vietnam joins many new generation FTAs ​​such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the Vietnam-EU FTA (EVFTA).

Leaders of Trade Protection Department analyzed that when exporting enterprises of a country are applied trade remedies, these enterprises often find a way to overcome it by moving production to another country. Meanwhile, with favorable policies for foreign investment, Vietnam is one of the options of those enterprises to shift production which leads to a dramatic increase in export volume of Vietnam. As a result, Vietnam are easily subject to monitoring, investigation, evasion trade remedies, origin fraud and can be applied the additional trade remedy measures or sanctions from imported ones.

Strengthen early warning system

For Vietnam's export industries, those who are subject to foreign investigation relevant to trade remedy evasion, origin fraud and illegal transshipment will lead to negative impacts such as affecting related industries and enterprises, genuine production/export, especially the reputation of Vietnam's export goods. In the long run, this also negatively impacts on the competitiveness of the whole Vietnamese economy, especially in the context that Vietnam is participating in a series of FTAs with high requirements on origin.

It is forecasted that in the coming time, the risks facing Vietnam's export goods will become larger and larger. Trade Protection Department recommends that businesses always follow information closely; carefully study the export market, regularly update early warning information from the Ministry of Industry and Trade.

“In addition, exporting enterprises also need to perfect the accounting book system according to international accounting standards, manage the book system to achieve even higher efficiency of appeal; coordinate with the Ministry of Industry and Trade in preventing acts of forgery, origin fraud and illegal transshipment, and strictly and thoroughly handle them to protect the common interests of the industry," said Ms. Giang.

From the perspective of the industry, Mr. Nghiem Xuan Da, Chairman of the Vietnam Steel Association shared: “The Vietnam Steel Association realizes that trade lawsuits against Vietnam's exported steel as well as many other goods do not only happen in major markets such as the US, Canada, Australia, and Europe but also occurs more and more in countries in the region such as Thailand, Indonesia and Malaysia. It shows a very clear trend that in the coming time, exported goods from Vietnam can be sued against trade remedies in any country regardless of large or small market, any field or type of goods.

“Businesses should take care of solutions to improve efficiency and reduce risks of facing trade lawsuits such as diversifying export products and markets to disperse risks and avoid export concentration in large volumes into one market. In addition, businesses need to develop value chains, enrich domestic raw materials, improve competitiveness for export products, and develop brands," said Nghiem Xuan Da.

Particularly, in the aspect of preventing acts of evasion, origin fraud, and illegal transshipment, the representative of the Ministry of Industry and Trade informed more, in addition to maintaining effective operations of the early warning system on trade remedies, the Ministry of Industry and Trade has been coordinating with functional agencies to cooperate on preventing evasion and fraud of origin, proposing a number of ideas such as the voluntary export registration mechanism to strengthen the coordinate and share information of Vietnam with other countries in handling this issue, improving the reputation and brand of Vietnam's export products.

By Thanh Nguyen/ Thu Phương

Related News

Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Strictly control imports and trade of toxic chemicals

Strictly control imports and trade of toxic chemicals

VCN – HCM City Police has just advised the HCM City Steering Committee 138 to direct Customs Department, the Department of Industry and Trade, the Market Surveillance Department to review all enterprises permitted to import and trade dangerous and toxic chemicals to conduct inspections of their law compliance.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version