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According to information from the Vietnamese Mission in Geneva, on September 12, 2025, Indonesia officially announced the conclusion of its safeguard investigation on imported cotton fabrics.
The Investigating Authority determined that imports had caused or threatened to cause serious injury to the domestic industry and recommended the application of safeguard measures in line with the WTO Safeguards Agreement. Interested parties are entitled to request consultations with the Investigating Authority regarding this proposal.
Key Case Information
- Product under investigation: Cotton fabric with HS codes 5208.21.00, 5208.22.00, 5208.31.90, 5208.33.00, 5208.51.10, 5208.52.10, 5209.11.90, 5209.21.00, 5209.31.00, 5209.49.00, 5209.51.10, 5209.59.10, 5210.21.00, 5210.32.00, 5210.51.10, 5210.59.10, 5210.59.90, 5211.31.00, 5211.59.10, 5211.59.90, 5212.15.10, 5212.15.90, 5212.21.00, 5212.23.00, and 5212.25.10.
- Petitioner: Indonesian Textile Association.
- Date of initiation: October 27, 2023.
- Period of investigation: Initially 2020–2022, later updated to 2021–2024.
Investigation Findings
The Investigating Authority concluded that imports of cotton fabrics had increased sharply in both absolute terms and relative to domestic production. The surge was attributed to unforeseen factors such as the U.S.–China trade war, expanded production in India, and increased textile capacity in Vietnam.
Import growth was identified as the main cause of, or threat of, serious injury to Indonesia’s domestic industry, evidenced by declines in domestic market share, production, sales, productivity, and capacity utilization, as well as financial losses and job cuts.
Proposed Safeguard Measures
Indonesia proposed the application of absolute duties (Rp/meter of fabric) over three phases:
- Phase I: Rp 8,785 – 21,144 per meter.
- Phase II: Rp 8,263 – 19,898 per meter.
- Phase III: Rp 1,781 – 18,726 per meter.
Details of the specific duty rates are provided in the attached official document.
Impact on Vietnam
Under WTO rules, developing countries with import shares below 3%, and collectively under 9%, are exempted from safeguard measures. However, according to Indonesian data, Vietnam accounted for 5.04% of import share, ranking second after China (82.40%), and thus does not qualify for exemption. The safeguard measure is expected to take effect once the Indonesian Minister of Finance issues the implementing decision and publishes it in the Indonesian Official Gazette.
Importers, exporters, and other stakeholders may request consultations in writing within seven days of the announcement. Requests must be submitted both in hard copy and electronically, with full contact details of the applicant.
The Trade Remedies Authority of Vietnam recommends that Vietnamese businesses concerned carefully review the investigation conclusion and consider requesting consultations to safeguard their interests.
Production and Export Situation of Vietnamese Enterprises
Vietnam’s textile industry has significantly expanded capacity in recent years, with cotton fabric production serving both domestic demand and export markets. Indonesia is one of the key destinations; however, Vietnamese enterprises remain primarily focused on exports to the United States, the EU, and Japan.
Preliminary statistics indicate that Vietnam’s cotton fabric exports to Indonesia account for about 5% of total export turnover of this product, with participation from major enterprises located in Hanoi, Ho Chi Minh City, Binh Duong, and Nam Dinh. The imposition of safeguard measures by Indonesia may directly affect a group of small and medium-sized enterprises, while also creating pressure to diversify export markets and strengthen competitiveness to reduce reliance on markets applying trade remedy measures.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnam Antidumping Law Firm specializing in anti-dumping and trade remedy for timely assistance.
Download the document here.
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