Are Vietnamese exports being negatively impacted by Chinese goods?

Many Vietnamese industries are facing trade defense investigations or anti-circumvention lawsuits, making export activities difficult.

Many of Vietnam's export sectors are under investigation for tax evasion, including exported automobile tires - Photo: TAN LUC

According to businesses, solutions to mitigate the risks are needed soon. Vietnamese goods It has been placed under investigation for tax evasion.

Just over 5 months after the official investigation began. anti-dumping Regarding solar panels imported from Vietnam, the US Department of Commerce (DOC) recently issued a preliminary conclusion on the case, imposing temporary countervailing duties of 0.81% and 2.85% on two Vietnamese exporting companies.

For companies that did not participate in the questionnaire and did not cooperate, the tax rate was as high as 292.61%.

Suddenly accused of tax evasion…

Not only in the US market (the country that initiates the most investigations), recently Türkiye Vietnam also issued conclusions on anti-circumvention investigations against anti-dumping duties on solar panels, and South Africa initiated an anti-circumvention investigation against anti-dumping duties on automobile tires imported from Vietnam…

All these cases stem from allegations that products originating from or imported from Vietnam are circumventing anti-dumping duties currently applied to China.

At a recent export briefing between Vietnamese trade offices and the Ministry of Industry and Trade , the Vietnamese Trade Office in South Africa stated that the investigation into imported tires from Vietnam, Thailand, and Cambodia was initiated due to suspicions of origin fraud to evade taxes.

"They suspect these tire products originated in China, but somehow were shipped to Vietnam and labeled as Vietnamese goods before being exported to South Africa."

Previously, South Africa imposed anti-dumping duties on tires originating from China, with rates reaching 69-74%," the Vietnamese Trade Office in South Africa stated.

According to this person, export turnover Tire exports from Vietnam to South Africa have increased sharply (3.5 times), especially since the country imposed anti-dumping duties on China in July 2023. Specifically, in 2022, Vietnam's tire exports to South Africa totaled $5.46 million.

However, this figure increased to $19 million in 2023 and reached $20.8 million in the first seven months of this year. This is a sign that has led China to suspect that Vietnam is exporting products originating from China. This investigative information has caused great concern for many domestic businesses.

Mr. Ngo Sy Hoai, vice president and general secretary of the Vietnam Wood and Forest Products Association, said that since 2018, when the US-China trade conflict began, Vietnamese wood businesses have faced many risks of being investigated for circumvention of anti-dumping and countervailing duties.

In that case, the US issued its final ruling after more than two years of investigation into tax evasion related to plywood.

Thirty-seven Vietnamese businesses have been placed on a "blacklist," preventing them from continuing to export to the US. Regarding kitchen cabinets and vanity tables, after nearly two years of investigation, the US Department of Commerce recently decided to drop the antitrust investigation into these product groups.

Are they being negatively affected by Chinese products?

According to a representative of Da Nang Rubber Company, Thai tires exported to the US are subject to anti-dumping duties of up to 47% due to a continuous and sharp increase in Thai exports to the US, from just 2-3 million tires per year before the COVID-19 pandemic to approximately 10 million tires.

"What preparations have we made to prevent a similar situation from happening, given that a series of Chinese tire factories have been built in Vietnam with increasing production capacity? Will Vietnamese exports to the US face a similar risk and be subject to anti-dumping duties?" - this person worried.

Mr. Nguyen Minh Ke, chairman of the Vietnam Aluminum Profile Association, said that the aluminum industry has repeatedly faced numerous trade defense investigations, especially with the US market. These investigations are partly a consequence of the trade war.

According to Mr. Ke, China is the world's largest aluminum producer, accounting for 60% of global output, which is why the US and other countries have repeatedly imposed sanctions on its aluminum. The Vietnamese aluminum industry is also affected, facing trade protection measures from other countries due to the issue of aluminum originating from China.

"We propose that the Ministry of Planning and Investment find solutions to avoid trade safeguard taxes, and at the same time, consider more cautiously the aluminum projects of China when producing in Vietnam. Solutions are needed to limit the risks from trade safeguards and tax evasion so that the aluminum industry can develop," Mr. Ke said.

Mr. Nguyen Van Hien, Deputy General Director of Southern Rubber Industry Corporation (Casumina), said that Vietnam's tire production is currently subject to anti-subsidy duties, raising concerns about potential risks in exports.

In particular, according to Mr. Hien, there are increasingly more FDI enterprises Investing in large-scale tire manufacturing plants in Vietnam carries the risk of evading anti-dumping duties from other countries, potentially implicating Vietnamese goods.

"Casumina produces 1.5 - 1.8 million tires a year, but they produce up to 10 - 20 million tires. Therefore, the Ministry of Industry and Trade needs to find solutions to ensure a balance of interests and protect the domestic manufacturing industry," Mr. Hien suggested.