The European Commission (EC) has ended an anti-subsidy investigation into polyester staple fibre (PSF) imported from three countries, including Viet Nam, which is expected to boost fibre exports to Europe.

According to the Viet Nam Competition Authority, after it had collected information questionnaires from compulsory defendants identified earlier, along with the results of an on-site investigation, the EC learnt that the subsidy rate for Viet Nam PSF was only 1.25 per cent, the government's website chinhphu.vn reported.

According to regulations of the World Trade Organisation and the EC, anti-subsidy investigations must be stopped in a case, where the subsidy rate is less than 2 per cent.

This was the first anti-subsidy case made against Viet Nam in the European Union (EU). Winning the case is significant and reflects the Vietnamese government's efforts and assistance extended to the EC during the investigation since the announcement was made on December 19, 2013.

The anti-subsidy investigation was also carried out against PSF imported from China and India.

The investigation covered all of Viet Nam's programmes and policies considered by the petitioner, the European Man-made Fibres Association, as subsidies for exporters were based on Vietnamese legal documents issued between October 1, 2012 and September 30, 2013.

The programmes and policies investigated included, preferential loans, investment incentives, reduction of land use fees, and incentives granted for high technology, along with other incentives.

Viet Nam's victory in this case has also encouraged it to pursue other similar lawsuits filed against it.

From 2009 to September 30, 2014, Viet Nam has faced seven anti-subsidy cases, including five in the United States, one in the EU and one in Canada. 

VNS