The annual report on trade remedies recently released by MOIT showed that from July 2020 to June 2022, the US initiated the highest number of anti-dumping investigation cases (101), followed by India (58), China (32) and Canada (25).

India applied the highest number of anti-dumping measures with 73 cases, followed by the US (69) and Canada (26).

From January 1, 1995 to December 31, 2022, China faced the highest number of anti-dumping investigation cases (1,565 cases) which accounted for 24 percent of total cases (6,582) initiated by members of the World Trade Organization (WTO)

At the same time, Vietnam faced 120 anti-dumping investigation cases initiated, ranking 15th among countries which imposed the highest number of anti-dumping duties.

In 2022, WTO members initiated 89 anti-dumping investigation cases, of which China was the subject in 38 cases, accounting for 43 percent. Vietnam was the subject in four cases.

The US was one of the countries using trade remedies regularly. A report from the WTO (World Trade Organization) showed that as of the end of December 2022, the country had investigated 52 trade remedy cases against Vietnam’s exports, or 25 percent of the total Vietnamese export cases investigated by foreign countries.

India carried out and applied the most trade remedies. By the end of June 2022, India had investigated 1,188 cases and applied 810 trade remedies. As for Vietnam, India had investigated 30 cases. 

ASEAN countries also enhanced the application of trade remedies and Vietnam’s exports were the main targets of importing countries.

As of the end of June 2022, Indonesia had investigated 182 cases in total and applied 95 trade remedies. Of these, it investigated 11 cases related to Vietnam’s exports.

The Philippines had investigated 115 cases in total, and applied 22 trade remedies with 13 cases related to Vietnam’s exports.

The figures were 105 cases and 66 trade remedies, including eight cases related to Vietnam’s exports.

Meanwhile, to date, Vietnam’s MOIT has initiated an investigation of a total of 25 cases of trade remedies.

MOIT continued examining some dossiers proposing the investigation and application of anti-dumping and anti-subsidy duties against some new products and there were no emerging investigation cases in 2022.

However, the ministry completed the investigation over six cases, carried out the review over seven valid trade remedies, and considered whether to adjust the level, sphere and time of application.

The question is why Vietnam applies fewer trade remedies to protect domestic production than other countries. MOIT explained that there is difference in the statistical method used by Vietnam and WTO.

Vietnam counts the number of cases it has investigated, while other countries counts the number of countries investigated in every case.

For example, when Vietnam initiated the anti-dumping investigation against X product from three countries A, B and C, it was counted by Vietnam as one case, but WTO counted it as three cases. Therefore, as per WTO’s calculation, to date, Vietnam has carried out investigations in 50 cases.

The initiation of investigation and application of trade remedies still depends on the initiative and requirements of domestic associations and production fields. This is a prerequisite for state management agencies to proceed and conduct investigations in conformity with international commitments.

According to the Trade Remedies Authority of Vietnam, Vietnam joined WTO 10 years later than some other ASEAN and Asian countries, and it conducted the first investigation in 2009. Meanwhile, Indonesia has been using the tool since 1996 and India since 1995.

According to WTO, in 2018-2022, Vietnam ranked 12th among the member countries that initiate the highest number of trade remedy cases.

In principle, trade remedies, by nature, aim at protecting domestic production, not just some specific enterprises. Therefore, the basic demand when using trade remedies is the link among domestic enterprises to satisfy mandatory requirements when using trade remedies as required by the Vietnamese laws and WTO rules.

The use of trade remedies must be based on the proposals by the representatives of domestic production fields.

Meanwhile, as the majority of Vietnamese enterprises are small and medium, their awareness and knowledge about trade remedies remain limited, and their readiness to cooperate with each other in raising lawsuits is still low. All these reasons explain why trade remedies are still not used regularly by Vietnamese enterprises.

Luong Bang