Hanoi (VNA) 💦– Businesses need to increase the added value of their products and ensure origin tracing of materials to enhance sustainable production and export, and minimise export risk, said insiders.

Raising awareness of import standards can help enterprises to proactively respond and minimise losses when exporting commodities to international markets.

Number of trade remedies on the rise

The Canada Border Services Agency (CBSA) on March 8 initiated an investigation into the application of anti-dumping measures on wire rod products originating from Vietnam. Canada has so far initiated eight trade remedy investigations for steel products imported from Vietnam, including five cases of anti-dumping, two countervailing cases, and one self-defence case. Accordingly, Canada is targeting most of Vietnam's key steel products/types. Absolute increase in value is one of the criteria for Canada to conduct investigations and apply trade defence measures against Vietnam's steel wire. Since 2004, there have been over 70 investigations impacting steel exports from Vietnam to various countries, including anti-dumping, countervailing measures, and anti-circumvention measures. Pham Cong Thao, Vice General Director of Vietnam Steel Corporation (VNSteel), said under new regulations of the European Union (EU), the bloc will continue to maintain trade defence measures on steel imported into the EU until June 30, 2024. Therefore, to be exempted from safeguard duties, Vietnam must maintain an export share below 3% of the EU's total steel imports for each type of product.

For the aluminum industry, four trade defense cases in 2023 put pressure on Vietnamese enterprises. According to Vu Van Phu, Secretary General of the Vietnam Aluminum Association, the EU and the US have consistently applied trade defence measures, posing challenges for Vietnamese enterprises in maintaining market share. Businesses should proactively equip themselves with comprehensive knowledge related to trade defence and utilise that as a tool to promote their industries, Phu said.

Ensuring traceability needed

According to statistics from the Vietnam Chamber of Commerce and Industry (VCCI), in 2017 – 2023, the number of trade defence cases increased rapidly compared to the previous period. The number of trade defence cases faced by Vietnamese exports in foreign markets accounted for over 52% of the total cases Vietnam encountered over the last 30 years. The number of trade remedy evasion cases since 2017 has accounted for nearly 60% of the total lawsuits Vietnam has encountered. Nguyen Thu Trang, Director of the World Trade Organisation (WTO) and Integration Centre at VCCI, said recently, the number of products and sectors facing trade defence lawsuits has increased significantly to nearly 40 items, including those with small export turnover. Although sectors such as iron, steel, or aluminum are not the key export commodities of Vietnam, they are sectors that face most trade defense lawsuits from many countries. “Early warning helps us understand risks and prepare from the very onset of initial signs, thus enabling businesses to minimize losses,” Trang said.

Do Ngoc Hung, Trade Counselor and Head of the Vietnam Trade Office in the US said that to boost sustainable production and export, Vietnamese businesses should consider investing in research to increase the added-value of their products, reduce reliance on price competition, and ensure traceability of materials for production. Chu Thang Trung, Deputy General Director of the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade, advised businesses to update information on trade defence to comprehend their rights and obligations, trade law of host countries, and common investigation principles applied around the world reflected in agreements of the WTO./.