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Why does Vietnam investigate fewer cases than other countries?

VietNamNetVietNamNet19/07/2023


Vietnam ranks 15th among economies subject to anti-dumping measures.

The annual report on trade defense (TDR), recently released by the Ministry of Industry and Trade , shows that: From July 2020 to June 2022, the United States is the country that initiated the most anti-dumping investigations with 101 cases, followed by India with 58 cases, China with 32 cases, Canada with 25 cases...

Meanwhile, India is the country that applied the most anti-dumping measures with 73 cases, followed by the United States with 69 cases, Canada with 26 cases...

From January 1, 1995 to December 31, 2022, China was the country with the most anti-dumping investigations initiated with 1,565 cases, accounting for 24% of the total number of cases (6,582 cases) initiated by WTO members.

During the same period, Vietnam was initiated anti-dumping investigations by WTO members with 120 cases, ranking 15th among the economies with the most anti-dumping measures applied in the world .

Vietnam ranks 15th among the economies most subject to anti-dumping measures in the world.

In 2022, WTO members initiated a total of 89 anti-dumping investigations, of which China was the subject of 38 cases, accounting for 43% of the total number of initiated cases. Vietnam was the subject of 4 investigations.

The United States is one of the countries that frequently uses trade remedies. According to WTO statistics, by the end of December 2022, this country had investigated 52 trade remedies cases against Vietnamese export goods, accounting for about 25% of the total number of cases of Vietnamese export goods investigated by foreign countries.

India is the country that conducts the most investigations and applies SPS measures in the world. As of the end of June 2022, India has investigated a total of 1,188 cases and applied 810 SPS measures. For Vietnam, India has investigated 30 SPS cases.

Countries in the ASEAN region also increase trade remedies measures, and Vietnamese goods are often in the "crosshairs".

As of the end of June 2022, Indonesia has investigated a total of 182 cases and applied 95 trade remedy measures; of which 11 trade remedy cases were investigated related to Vietnamese export goods.

The Philippines investigated a total of 115 cases and applied 22 trade remedies measures, with 13 investigations related to Vietnamese exports.

Thailand has investigated a total of 105 cases and applied 66 SPS measures. Thailand has investigated 8 cases related to Vietnamese export goods.

Meanwhile, in Vietnam, the Ministry of Industry and Trade has so far initiated investigations into a total of 25 PVTM cases.

The Ministry of Industry and Trade continues to review and appraise a number of dossiers requesting investigation into the application of anti-dumping and anti-subsidy measures on a number of new products and no new investigations have arisen in 2022. However, the Ministry has completed investigations into 6 cases and reviewed 7 effective trade remedies measures to consider adjusting the level, scope and duration of application.

Vietnam is becoming fertile ground for imports.

Why does Vietnam apply PVTM less than other countries?

Responding to reporters from VietNamNet, the leader of the Trade Remedies Authority (Ministry of Industry and Trade) explained: In fact, the number of trade remedies cases that we have investigated and applied, announced by the Ministry of Industry and Trade (Trade Remedies Authority), has a fundamental difference in statistical methods with the figures of the WTO.

Specifically, Vietnam counts by the number of cases initiating investigations, while other countries count by the number of countries investigated in each case.

For example, when Vietnam initiated an anti-dumping investigation on product X from three countries A, B, C, we only counted it as one case, but according to WTO statistics, it was considered as three cases. According to WTO statistics, Vietnam has investigated more than 50 cases to date.

Furthermore, the initiation of investigations and application of trade remedies also depends on the initiative and required documents of domestic associations and industries. This is a crucial factor for the management agency to carry out related procedures in accordance with international commitments.

In addition, according to the leader of the Trade Defense Department, Vietnam joined the WTO nearly 10 years after some ASEAN and Asian countries. We first started investigating trade defense measures in 2009, meaning we have only used this tool for 14 years, while Indonesia has been using it since 1996 and India since 1995.

“According to WTO statistics, in the period 2018-2022, Vietnam ranked 12th among member countries initiating the most investigations into trade remedies cases,” said the leader of the Trade Remedies Authority.

According to this leader, the nature of trade remedies is to protect the domestic manufacturing industry, not a few specific enterprises. Therefore, the basic requirement when using trade remedies is that there must be a connection between domestic manufacturing enterprises to meet the requirements and mandatory conditions when using trade remedies in accordance with the provisions of Vietnamese law as well as the WTO. The use of trade remedies must be based on the request dossier of representatives of the domestic manufacturing industry.

“However, because most Vietnamese enterprises are small and medium-sized, their awareness and understanding of trade remedies is still very limited, and their willingness to cooperate to make recommendations is difficult, causing the number of cases using trade remedies in Vietnam to be low,” the leader of the Trade Remedies Authority assessed.

Imported goods flood in, suffocating domestic production . The opening of the market and the removal of tariff barriers have caused foreign goods to flood into Vietnam. Meanwhile, technical barriers to protect domestic production have not kept up, putting many industries on the brink of “survival”.


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