Tiếng Việt
中文 (中国)
When Vietnamese manufacturing and exporting enterprises are subject to trade remedy investigation, would their production and export activities will be negatively affected, leading to a state of reduction or even a complete stop, seriously affect the Vietnamese economy?
With an economy that relies heavily on export production like Vietnam today, a high ratio of exports to imports means that the economy can grow strongly and quickly in a short time.
However, a sharp increase in the amount of goods exported to countries around the world will also lead to the risk of serious impacts on the domestic industry of that country as well as the exchange rate of exported goods, negatively affecting the country’s stability on the domestic market.
Thereby, the Trade Remedies Bureau of those countries will conduct trade remedy investigations including anti-dumping, anti-subsidy, self-defense, and evasion of trade remedies to impose duties on enterprises exporting an excessive amount of exported goods, causing serious injury or damage to its domestic market.
Vietnam has investigated many trade remedy cases and is even the subject of many other trade remedy investigations, mainly from countries such as the United States, China, etc.
As a large open economy, Vietnam will be easily affected by market fluctuations, including temporary bans, trade remedy investigations in countries that are key markets of Vietnamese company.
With these conditions, it is reasonable for Vietnamese enterprises to be affected by the investigations, reflected in their operations and production and export volumes. However, according to Mr. Chu Thang Trung – Deputy Director of the Trade Remedies Department of Vietnam (Ministry of Industry and Trade), in general, in the current market, the decline in Vietnam’s industrial production and export activities in recent years has not been directly affected by the fact that Vietnamese enterprises are subject to trade remedy investigation of many different countries.
In fact, the cause of the sharp decline in production activities at the end of 2022 and the beginning of 2023 comes from the difficulty of the world economy, as well as the risk of economic recession, inflation and high interest rates coming from the Vietnamese government policy.
Vietnamese enterprises, due to difficulties in getting loans as well as fear of borrowing loans when looking at the world situation, have slowed down Vietnam’s overall development momentum.
However, the trade remedy cases will partly have the effect of further promoting and aggravating Vietnam’s difficult economic situation, forcing Vietnamese businesses to consider adjusting their operating plans such as reducing the amount of goods produced and exported, and thereby, laying off and cutting employees short-term and long-term, etc.
In order to solve these difficulties, the Vietnam Trade Remedies Department has a great responsibility to ensure that Vietnamese enterprises can get rid of worries about international trade remedy investigations so that they can focus on responding to other domestic and international difficulties.
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.
