- Introduction
Anti-dumping (AD) duties are trade remedies designed to protect domestic industries from unfairly priced imports. For foreign enterprises exporting goods to Vietnam, understanding Vietnam’s anti-dumping regime is crucial to avoid unexpected costs and disputes. Vietnam’s legal framework is mainly based on the Law on Foreign Trade Management 2017, its guiding decrees (e.g., Decree No. 86/2025/ND-CP, and the country’s commitments under the WTO Anti-Dumping Agreement.
2. Legal Framework
Vietnam introduced its first comprehensive trade-remedy regulations in 2004 and has gradually aligned with WTO disciplines. Key elements include:
- Definition of Dumping: Exporting goods to Vietnam at prices lower than their “normal value” (home-market price or cost plus reasonable profit).
- Authority: The Trade Remedies Authority of Vietnam (TRAV), under the Ministry of Industry and Trade (MOIT), investigates and recommends AD measures.
- Procedures: Investigations start upon a petition by domestic industries representing at least 25% of national production. TRAV may also initiate cases ex officio if evidence of injury exists.
3. Imposition of Anti-Dumping Duties
If dumping and material injury are proven, MOIT may impose AD duties through a ministerial decision. These duties:
- Are applied as ad valorem or specific rates, typically ranging from 5% to 35%, depending on the dumping margin.
- Last for five years, with possible extensions after a sunset review.
- May be applied retroactively (up to 90 days) if import surges cause injury.
Foreign exporters must cooperate by submitting questionnaires, transaction data, and cost information. Non-cooperation can result in the use of “facts available,” often leading to higher duties.
4. Practical Implications for Foreign Enterprises
Anti-dumping measures significantly affect market access and profitability:
- Pricing Strategies: Exporters must carefully align export prices with production costs and home-market prices to avoid dumping margins.
- Compliance Burden: Preparing data, undergoing on-site verification, and legal representation during investigations can be resource-intensive.
- Supply Chain Adjustments: Duties may force enterprises to shift manufacturing or sourcing to avoid excessive tariffs.
Notably, Vietnam has applied AD duties in sectors such as steel, plastics, chemicals, and textiles, reflecting an expanding use of trade remedies as its manufacturing base grows.
5. Challenges and Criticisms
Despite alignment with WTO rules, foreign enterprises report several concerns:
- Transparency: Some exporters find investigation methodologies and calculations opaque.
- Administrative Capacity: Limited experience among investigators can lead to procedural delays.
- Small Exporters’ Burden: Compliance costs may be disproportionate for SMEs.
- Potential for Protectionism: Critics argue that some cases protect domestic producers without strong evidence of unfair pricing.
6. Reform Proposals
To enhance fairness and predictability:
- Clarify Calculation Methods: Publish detailed guidelines for determining dumping margins and injury assessments.
- Digitalize Procedures: Allow online submission of data and questionnaires to reduce administrative burden.
- Strengthen Consultation: Improve engagement between TRAV, exporters, and domestic industries during investigations.
- Capacity Building: Train investigators and judges to ensure consistent application of trade-remedy law.
7. Conclusion
Anti-dumping duties in Vietnam are an essential tool for protecting domestic production against unfair trade practices. For foreign enterprises, awareness and compliance are key to avoiding penalties and maintaining access to Vietnam’s growing market. Transparent investigations and harmonization with international best practices will help balance the interests of domestic industries and foreign traders, fostering a fair and competitive business environment.
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