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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