Tiếng Việt
中文 (中国)
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With the economy’s integration, the ceramic tile industry has a significant possibility for development and export expansion. However, this industry will also face more risks of trade remedies (TR) investigations from markets.
Vietnam’s ceramic tile sector has grown rapidly over the last 25 years, with a manufacturing capacity of 750 million m2/year and a wide range of products to offer the market. The ceramic tile sector, in particular, not only meets the needs of the domestic market, but also exports to numerous international markets, including large markets such as ASEAN, the United States, and Cuba…
Mr. Dinh Quang Huy, Chairman of the Vietnam Construction Ceramics Association, stated that exporting to the rest of the globe is a significant step forward for the ceramic tile sector in Vietnam in recent years. However, along with increased exports, this commodity has faced significant problems in obtaining trade remedies from overseas markets. Many export markets, such as the Philippines and Malaysia, have recently begun to study and implement trade remedies for ceramic tiles. Taiwan (China) launched an anti-dumping investigation into ceramic tiles exported from Vietnam to this market in 2020.
According to a representative of the Vietnam Construction Ceramics Association, this industry determines in the framework of economic integration whether or not to apply the trade remedies measure to ceramic tiles. Trade remedies are new concern, and businesses’ reaction experience is still limited, therefore businesses and the manufacturing industry confront numerous challenges and confusion.
Mikado Company is a consumer supplier of high-quality construction ceramic goods, and this unit has had numerous trade remedies investigations. Ms. Bui Thi Hanh, Head of Mikado Company’s Import-Export Department, stated that when Taiwan (China) conducted an anti-dumping investigation against Vietnam’s ceramic tiles, many companies in the industry, including Mikado, were concerned because the investigation cases would cause the company’s orders to decrease; not only that, if the trade remedy tax was imposed, there would be a greater risk of losing market share.
“As soon as the investigation notification was received, the company was at a loss for what to do. This is due to the company’s lack of skilled people on trade remedies, limited financial means to prosecute the litigation, as well as impediments in terms of market, language, and how to contact the investigative agency… which confound enterprises,” Ms. Hanh explained.
However, following initial concerns, Mr. Dinh Quang Huy stated that, with the assistance and support of government agencies such as the Ministry of Sector and Trade, as well as the initiative and active cooperation of the industry, enterprise, therefore, the majority of trade remedies investigations for exported ceramic tiles have yielded very favorable outcomes; all markets have levied low tax rates, even 0%, on Vietnamese ceramic tiles. The Financial Conduct Authority of Taiwan (MOF) published preliminary results of the case on April 9, 2021, according to which the dumping margin of Vietnamese firms is assessed to be 0%. – 28.60%.
Proactive prevention
Ceramic tiles have a lot of potential for development and export expansion in the framework of economic integration. Mr. Dinh Quang Huy stated that, given the industry’s potential, production capacity is not limited to 750 million m2/year, but could be much higher because we have many high-speed companies and businesses. accelerated growth Mr. Huy admitted, “We have sufficient raw materials, ceramic tile enterprises continually invest in advanced manufacturing lines, on par with other countries in the region, approaching the technology of certain European countries; skilled labor.”
However, in the face of rising protectionism, the ceramic tile industry must respond efficiently and confidently in the global market to prevent trade remedies lawsuits from the export market. Ms. Pham Chau Giang, Deputy Director of Trade Remedies Authority of Vietnam, remarked that as a result of the integration process, several countries’ competitiveness and protectionism have strengthened. Countries concentrated on strengthening support for a number of local manufacturing industries, as well as increasing trade remedies for strategic commodities like iron and steel and fertilizers, in the context of the Covid-19 outbreak. As a result, businesses in the export manufacturing industries must regard trade remedies instruments and measures as a necessary part of their operations. We will develop appropriate coping skills as a result of this insight.
Ms. Bui Thi Hanh also emphasized that businesses need to prepare a positive attitude when they are involved in lawsuits based on her practical experience. In which case, human resources with knowledge of trade remedies must be prepared; detailed dossiers must be prepared to meet the requirements of investigating agencies; and, through the management agency, a law firm should be considered for advice, preferably with a representative in Vietnam to facilitate the exchange process. “Management agencies must actively support enterprises by giving information, linking manufacturers, and connecting investigation agencies and law firms.” Businesses will be more confident in their ability to win litigation if the government backs them up,” Ms. Hanh said.
The Ministry of Industry and Trade has been focused on market intelligence to assist firms in taking advantage of free trade agreement (FTA) advantages and gaining access to new markets. Furthermore, in order to promote export promotion activities, especially in light of the recent outbreak of the Covid-19 epidemic, Ministry units have made significant efforts to organize online trade programs, including the construction of a national pavilion on the e-commerce floor of some markets…
In addition, the Ministry of Industry and Trade has stepped up its efforts to warn businesses about the dangers of trade remedies and to assist businesses in identifying trade remedies through the early warning system and trade network. recognize the possibility of enacting trade remedies promptly The Ministry of Industry and Trade will continue to expand the warning system to numerous areas and categories. Because early warning about the risks of trade remedy lawsuits is a critical component of successfully responding to cases of trade remedy investigation and application from overseas, according to Ms. Pham Chau Giang.
Import-export turnover is expected to rise in the coming years as a result of Vietnam’s participation in a number of free trade agreements (FTAs), though many of these will likely result in the appearance of more trade remedies for exports. As a result, in order to prevent disadvantages while implementing trade remedy taxes, management authorities must continue to gain more active collaboration from enterprises and industry associations.
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
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