Vietnam joined the WTO, signed various types of trade
agreements, and step by step eliminated tariff and non-tariff barriers, and
accelerated the process of integration and development of Vietnam. The Foreign
Trade Administration Act of 2017, which regulates trade remedies, has also
terminated the effect of the Ordinance on Anti-dumping of Imported Goods in
2004.
Anti-dumping Law Firm in Vietnam
According to the Law on Foreign Trade Management, Decree
10/2018/ND-CP, anti-dumping measures against goods
imported into Vietnam is a measure applied in cases where the
goods are identified dumping when imported into Vietnam causes substantial
injury or threatens to cause material injury to a domestic industry or prevents
the formation of a domestic manufacturing industry. A commodity is determined
to be dumping when it is compared to the following conditions: the selling
price in Vietnam is lower than the normal price. The usual price determination
is regulated by the Law on Foreign Trade Management in three ways: the price of
the like goods at exporter, the price of the like goods in the third country
under normal commercial conditions or the price determined by the investigating
agency by the method of self-calculation.
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For the application of anti-dumping measures, the “sale price”
factor is not sufficient, but must fully satisfy the conditions prescribed by
law. Accordingly, the dumping measure is applied when the dumping margin is
over 2%; the domestic industry suffered material injury or threatened to cause
material injury; there is a fruitful relationship between the importation of
goods selling prices and the domestic production. With the margin of dumping
below 2%, anti-dumping measures are not applicable.
The application of anti-dumping measures is considered as a way of
healthy competition of enterprises. Domestic enterprises may request the
competent agencies to apply this measure when they find that they fully satisfy
the conditions on quantity and volume of goods related to their selling prices
and the proportion of goods that they sell on the market devaluation (at least
25%). On the basis of the conclusions of the investigation, the anti-dumping
tax shall be applied for not more than 5 years or the measures for elimination
of dumping at the request of the domestic enterprises if they are approved by
Vietnam Competition Authority, the investigation bodies.
An anti-dumping duty shall apply retroactively prior to the
decision of the Minister of Industry and Trade. Anti-dumping duty shall be
retroactively applied to imported goods for a period of 90 days before the
imposition of provisional anti-dumping duty if the imported goods are found to
be dumped.
Therefore, anti-dumping measures are a way to protect the domestic
industry and at the same time create a healthy competition between foreign
enterprises and Vietnamese enterprises. At the same time, respect for
international commitments, trade agreements that Vietnam signed when joining
the WTO.
If Client needs any more information or request
for legal advice or potential dispute regarding trade remedies measures
including, anti-dumping, countervailing duty and safeguard measures or
international trade dispute matters, our competition, anti-dumping, and countervailing
duty lawyers in Vietnam of International trade and tax practice at
ANT Lawyers, a law firm in Vietnam always follow up
anti-dumping cases and its development to update clients on regular basis.
