Experience in responding to trade defense investigations from Vietnam's aluminum industry

From the experience of responding to trade defense investigations of the Vietnamese aluminum industry, businesses must focus on quality instead of price to avoid being investigated.

New challenges for businesses

Along with the rapid growth of exports, in recent times, international markets have also increased trade defense measures against Vietnamese goods. Accordingly, the frequency of trade defense investigations against Vietnamese export goods is increasing rapidly. The Department of Trade Defense ( Ministry of Industry and Trade ) said that by the end of September 2024, there had been 263 trade defense investigations related to Vietnamese export goods.

Businesses need to focus on quality instead of price to avoid being investigated for trade defense. Photo: VNA

In fact, according to assessments, Vietnamese enterprises have had experience in responding to trade defense investigations from abroad. However, there are still many difficulties and challenges when the scope of investigated products is increasingly expanding, not only products with large export turnover such as shrimp, tra fish, steel, wood but also products with medium and small export value such as lawn mowers, honey, paper plates, etc. have also fallen into the market's investigation sights. In addition, the trend of investigation is becoming more and more strict, when the investigation agency has higher requirements for the government , businesses, etc.

Ms. Truong Thuy Linh - Deputy Director of the Trade Defense Department - said that recently, the Trade Defense Department has stepped up its support for businesses in responding to trade defense investigations. In particular, it has stepped up its work of early warning of the risk of trade defense investigations so that businesses can proactively develop a response plan.

Accordingly, the Trade Defense Department has been monitoring export fluctuations of nearly 40 items and periodically issues a warning list of about 10 items. On the other hand, thanks to the early provision of information, it has helped businesses understand the principles, investigation procedures, the work to be done and possible scenarios so that businesses can develop response strategies.

In the coming time, according to Ms. Truong Thuy Linh, the signing of bilateral and multilateral FTAs ​​will help increase the export of goods, but countries will also increasingly apply them with the determination to protect and develop domestic production, countries subject to trade defense taxes will find ways to evade taxes... this leads to the possibility that Vietnamese export enterprises will become the subject of increasingly greater investigations.

Sharing about the trend of trade defense investigations, Lawyer Nguyen Thanh Ha - CEO of SB Law - said that this is putting a lot of pressure on businesses and industries. What is worrying is that currently, most businesses are having difficulty responding to trade defense measures. In particular, the level of understanding of trade defense regulations and laws of import markets of businesses is still modest. Industry associations also play an important role in the investigation process, but the associations also have difficulty using the available tools.

In that context, improving the capacity to respond to investigations is very important when Vietnam's export goods continue to have many opportunities to access international markets. At the same time, the authorities are stepping up propaganda and recommending that businesses need to prepare resources to effectively respond to the "wave" of trade defense. In particular, "businesses and industry associations need to consider the risks of trade defense to build reasonable production and export; prepare resources to deal with the risks of trade defense lawsuits " - Ms. Truong Thuy Linh recommended.

Focus on quality instead of price to avoid investigation

In recent times, aluminum has been an industry that has frequently faced many trade defense investigations. Accordingly, Mr. Nguyen Minh Ke - Chairman of the Vietnam Aluminum Profile Association emphasized that businesses in this field have clearly recognized the importance of trade defense and the positive effects when businesses in the industry unite together, effectively utilizing trade defense measures to deal with foreign dumped goods or continue to successfully protect export markets when being investigated by foreign countries for trade defense.

" In the context of the increasing trend of protectionism and application of trade defense measures in the world , understanding and careful preparation are very important for the success of Vietnamese enterprises in the international market," Mr. Ke shared.

From the practice of responding to trade defense investigations, as well as protecting interests and improving product capabilities in the international market, the representative of the Vietnam Aluminum Profile Association said that, first of all, businesses must pay attention to improving product quality. Accordingly, it is necessary to increase investment in research and development, improve production processes to create high-quality products. At the same time, focus on quality instead of price to avoid being investigated.

In addition, it is necessary to keep detailed and organized records, including financial, production and sales documents for easy provision when needed. On the other hand, regularly update information on trade defense measures and international market trends; organize trade defense training courses for employees to improve awareness and response skills.

According to Mr. Nguyen Minh Ke, collecting evidence is an important step in the process of responding to trade defense investigations. Therefore, businesses need to focus on three main types of evidence: Price data including domestic prices, export prices, and margin differences; Evidence of damage including reduced revenue, lost market share, and reduced profits; Financial records including financial statements, balance sheets, and cash flow statements.

In addition, businesses are advised to strengthen cooperation with the investigation agency, which is an important factor to ensure the investigation process is smooth and fair. Accordingly, businesses need to: Establish a communication channel with the investigation agency, the Department of Trade Defense, Ministry of Industry and Trade; provide additional feedback by answering questions and requests for clarification; Provide information by submitting documents and records as requested; participate in hearings, present and defend the business's viewpoint.

At the same time, in order to achieve positive and beneficial results, in the process of responding to trade defense investigations, it is very important to seek professional legal support. Therefore, businesses are recommended to receive advice from specialized lawyers, support in preparing and submitting legal documents; represent businesses during the investigation process, ensuring all actions are legal.

Next is attending hearings, which are an important opportunity for businesses to protect their interests. Accordingly, businesses need to prepare to collect and organize evidence and supporting documents; present their views and evidence to the investigation agency; practice presenting and preparing answers to questions that may be asked; monitor the results and provide additional information if necessary.

The Chairman of the Vietnam Aluminum Profile Association further recommends that businesses need to monitor the trade defense investigation process by: Always updating information on ongoing steps and deadlines for completing each stage of the investigation process. Be ready to provide additional documents, data or explanations when requested by the investigating agency; prepare answers and discuss at meetings and hearings proactively and effectively. Grasp the reactions and comments of the investigating agency to promptly adjust the protection strategy.

Source: https://congthuong.vn/kinh-nghiem-ung-pho-dieu-tra-phong-ve-thuong-mai-tu-nganh-nhom-viet-nam-359468.html