Vietnam's global economic integration amid increasing trade protectionism worldwide has exposed the country's exports to multiple lawsuits. The number of trade-defense lawsuits is even expected to rise in the coming days due to the U.S.-China trade war, Nguoi Lao Dong newspaper reported, citing the Trade Remedies Authority of Vietnam.

Steel produced at Thai Nguyen Iron and Steel Corporation

Numerous trade-defense lawsuits have been filed against Vietnamese iron, steel, fibers, household appliances and tires.

Vietnam’s steel exports last year faced the most lawsuits by companies in the United States, Canada, the European Union and India. These firms accused Vietnamese exports of being produced in third countries that are subject to higher taxes than Vietnam, particularly China.

As a result, after the European Union announced it would launch an investigation into 26 iron and steel products, including those from Vietnam, the country’s steel export bound for the market has plunged from over US$89 million worth in May last year to US$63 million in October.

Wooden products have also faced trade remedies in many importing countries. Huynh Quang Thanh, chairman of the Binh Duong Furniture Association, said Vietnam might face a high risk as certain Chinese wooden products have been exported to Vietnam to "whitewash" their origin before being shipped stateside.

Binh Duong Province is now home to some 200 foreign-invested wood processing firms, accounting for one-third of the total number of enterprises in the province's woodworking sector, including 30-40 Chinese ones, Thanh added.

According to Deputy Minister of Industry and Trade Tran Quoc Khanh, the United States decided to impose tariffs on an additional US$200 billion of Chinese exports and will limit Chinese wooden imports. This should be a good opportunity for Vietnam.

However, the country should get shipments, especially those from China, under tight control to avoid creating conditions that would attract U.S. tariffs on Vietnam’s products.

Khanh said the Ministry of Industry and Trade would coordinate with the customs agencies and other relevant agencies to intensify trade remedies. Meanwhile, enterprises should keep a close watch on the market and promptly report unexpected developments to the competent agencies.

Lawyer Le Thanh Kinh, managing director of Le Nguyen Law Firm, stated that without strict regulations on the origin of imports and exports, China would send their products to Vietnam to complete the final phases of production such as assembly, packaging and labeling. Vietnamese enterprises producing high-quality goods with clear origins may also be affected.

Chu Thang Trung, deputy head of the Trade Remedies Authority of Vietnam, said domestic enterprises should stay updated on regulations for trade remedies in importing markets, closely cooperate with State management agencies and business associations and enhance their relationships with foreign partners.

SGT