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.
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.
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.
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