Anti-dumping duties are one of the key tools used by countries to protect their domestic industries from unfair trade practices, particularly when foreign products are sold at prices lower than their normal value, causing harm to local businesses. In Vietnam, the application of anti-dumping measures is governed by specific legal frameworks and conditions to ensure fair competition in the market. This system is essential to maintain a level playing field for domestic producers, safeguard economic interests, and promote sustainable development. Understanding the conditions under which anti-dumping duties can be applied is crucial for businesses and stakeholders involved in international trade. This article explores the conditions and procedures for imposing anti-dumping duties in Vietnam, as regulated by the country’s laws and international trade agreements.
1. What is anti-dumping duty?
Pursuant to Clause 5, Article 4 of the Law on Import and Export Duties 2016, anti-dumping duty is prescribed as follows:
“Anti-dumping duty means an additional import duty imposed on goods that are dumped into Vietnam and cause or threaten to cause considerable damage to a domestic industry or obstruct the formation of a domestic industry.”
2. Conditions and rules for applying anti-dumping duties in Vietnam
Article 12 of the Law on Import and Export Duties 2016 sets out the following conditions and rules:
| No. | Content Type | Provision |
|---|---|---|
| 1 | Condition | The imports are being dumped in Vietnam, and the dumping margin must be determined. |
| 2 | Condition | The dumping causes or threatens to cause considerable damage to domestic manufacturing, or prevents the formation of domestic manufacturing. |
| 3 | Rule | Anti-dumping duty may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing. |
| 4 | Rule | Anti-dumping duties shall be applied after an investigation is carried out and conform to the investigation conclusions as prescribed by law. |
| 5 | Rule | Anti-dumping duty shall be imposed upon dumped imports in Vietnam. |
| 6 | Rule | The application of anti-dumping duties must not cause damage to domestic socio-economic interests. |
These provisions aim to ensure that anti-dumping measures in Vietnam are applied in a fair, transparent, and legally grounded manner. By balancing the need to protect domestic industries with broader socio-economic considerations, Vietnam’s legal framework aligns with international trade practices while safeguarding national interests.
3. Regulations on anti-dumping measure imposed on imports of Vietnam
Article 77 of the Law on Foreign Trade Management 2016 stipulates anti-dumping measures as follows:
“1. Anti-dumping measures against goods imported into Vietnam (below referred to as anti-dumping measures) are measures which are applied in case the imported goods are identified as being dumped into Vietnam, causing material injury or threatening to cause material injury to a domestic industry or impeding the formation of a domestic industry.
2. Goods shall be identified as being dumped when they are imported into Vietnam at prices lower than the comparable normal prices of similar goods sold in the exporting country or in a third country under normal trade conditions or at prices determined by the investigation body by the self-calculation method.
3. Anti-dumping measures include:
a/ Imposition of anti-dumping duties;
b/ Commitment on measures to eliminate dumping by the organization or individual manufacturing and exporting the goods requested to be applied with anti-dumping measures with the Vietnamese investigation body or with domestic manufacturers when so approved by the investigation body.”
A list of anti-dumping cases handled in Vietnam can be found at the official website of the Trade Remedies Authority of Vietnam via [this link].
In conclusion, Vietnam’s approach to anti-dumping duties reflects its commitment to fostering fair competition and protecting domestic industries within the bounds of international trade norms. By establishing clear legal conditions and procedures for imposing such duties, Vietnam ensures that any trade remedies applied are justified, proportionate, and transparent. For businesses engaging in international trade—whether domestic or foreign—understanding these regulations is essential to mitigate risks, ensure compliance, and make informed decisions. As global trade dynamics continue to evolve, staying informed about Vietnam’s trade defense mechanisms, including ongoing anti-dumping investigations and decisions, is crucial for all stakeholders involved.
————————————————-
CONTACT LEGAL CONSULTANT:
TLA Law is a leading law firm with a team of highly experienced lawyers specializing in criminal, civil, corporate, marriage and family law, and more. We are committed to providing comprehensive legal support and answering all your legal questions. If you have any further questions, please do not hesitate to contact us.
1. Lawyer Vu Thi Phuong Thanh, Manager of TLA Law LLC, Ha Noi Bar Association
Email: vtpthanh@tlalaw.vn
2. Lawyer Tran My Le, Chairman of the Members’ Council, Ha Noi Bar Association
Email: tmle@tlalaw.vn.
– Nguyen Huong Huyen-