Tiếng Việt
中文 (中国)
In March 2024, Formosa and Hoa Phat submitted applications to initiate an anti-dumping investigation against hot-rolled coil steel imported from China, citing that Chinese enterprises’ dumping of steel products in the Vietnamese market threatens the domestic manufacturing industry. However, while Chinese companies have not responded, seven Vietnamese steel producers have voiced opposition, stating that there is no basis for conducting an anti-dumping investigation.
These companies include: Hoa Sen Group, TVP Steel Joint Stock Company, Dong A Steel Corporation, Nam Kim Steel, Phuong Nam Steel, Pomina Steel, and Vinh OOne.
The opposing companies argue that Formosa and Hoa Phat consistently sell to Vietnamese galvanized steel enterprises at higher prices compared to imported Chinese goods and maintain this price difference over an extended period. At times, domestic HRC steel prices have been higher than imported prices by $10 to $20 per ton, with peak differences reaching $40 to $50 per ton… in a context where there are no anti-dumping duties on hot-rolled steel imported from China.
A representative of Hoa Sen Corporation stated that the price increase of hot-rolled steel products leads to corresponding increases in finished goods prices, resulting in losses for consumers.
Hot-rolled steel is the main material for producing galvanized, cold-rolled, colored, and other steel products used in various industries such as construction, mechanics, and other industrial sectors.
A representative from the Trade Remedies Authority (Ministry of Industry and Trade) confirmed that they have received requests from several domestic steel manufacturing companies regarding the application of trade defense measures (anti-dumping) against hot-rolled steel imported from India and China into Vietnam.
According to Article 30(1) of Decree No. 10/2018/ND-CP, the investigating authority (Trade Remedies Authority) has a period of 15 days to assess the completeness and validity of the request for applying anti-dumping measures. If the request is incomplete or invalid, the investigating authority must inform the organization or individual submitting the request to supplement it.
The deadline for submitting supplementary requests is determined by the investigating authority but cannot be less than 30 days from the date the investigating authority notifies the request for supplementation. Subsequently, the results will be announced to the relevant parties as prescribed.
Under the Foreign Trade Management Law, if a company detects signs of dumping behavior of imported goods causing damage to the domestic manufacturing industry, they have the right to submit a request for anti-dumping measures.
Upon receipt of notification of the completeness and validity of the dossier, the Trade Remedies Authority will publicly announce information on the investigation request on its website and request relevant parties to carry out further procedures accurately and within the prescribed time limit.
One of the important considerations in the review process is to determine evidence of the dumping or subsidy of imported goods into Vietnam causing or threatening to cause significant damage to the domestic manufacturing industry or substantially impeding the formation of the domestic manufacturing industry.
Currently, Vietnamese companies opposing the investigation have provided preliminary evidence that the dumping margin of HRC products from China imported into Vietnam is only 1.26%, not exceeding 2%, so it cannot be considered as dumping (The dumping margin is the normal value at the factory minus the export price at the factory, divided by the export value).
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to info@aslgate.com.
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.
