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Enterprises focus on Trade Remedies

In addition to the advantages of deep integration, enterprises easily face investigations on trade remedies. According to the Ministry of Industry and Trade, businesses and industry associations should regularly monitor the published list of warning products at risk of being investigated to be proactive in production, business, and reduce the risks related to trade remedies.


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Nam Long Co., Ltd (Long Thanh District) focuses on the origin of raw materials so that the products always meet the export requirements

 

At the beginning of 2020, the Government issued Decision No. 316/QD-TTg approving the project "developing and operating effectively the early warning system for trade remedy". The objective of the project is to develop and effectively operate an early warning system to monitor, warn and support the investigation agency on trade remedies and related agencies in investigating and handling trade remedy cases domestically and internationally.

 

Keeping a close eye to avoid the disputes

In the past 5 years, many of Vietnam's exports to the United States and the European Union have increased rapidly, 3-5 times higher than in the previous period. In which, there are cheap export products of Vietnam because of advantages in labor, raw materials and preferential tariffs. Therefore, many countries have erected technical barriers and trade protection measures to protect domestic production. This is what enterprises and industry associations in Vietnam must familiarize themselves with to actively prevent and respond to foreign trade remedy lawsuits.

 

Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department noted: “Vietnam has signed 13 trade agreements with other countries, the export market has expanded, and the attraction of foreign direct investment has also increased highly. In addition to the opportunities it brings, there are also many challenges that businesses must understand the markets and products they export to. The EU and the United States are countries with very strict requirements on the origin and quality of goods. Enterprises must upgrade their products to fully and clearly meet such goods standards to avoid risks of investigation and application of trade remedies.

 

Dong Nai has more than 3,500 enterprises participating in exporting goods with more than 50 main export products, of which 7-8 items are exported over US$1 billion per year, businesses need information about the market of countries around the world to build production plans accordingly. According to Mr. Luc Van Thuy, Head of Trade Management Department of the Department of Industry and Trade, when the Ministry of Industry and Trade has warned about the list of items that are at risk of investigation on trade remedies, the department promptly informs businesses in the province to proactively learn the related information to prevent and reduce the risk of trade remedies. However, the province has not had many programs of seminars and in-depth propaganda on trade remedies for businesses because they have to wait for documents to direct and guide from the Government and the Ministry of Industry and Trade.

 

Pay attention to the origin of goods

In order to limit trade remedy lawsuits, from the stage of selecting the raw materials, to production, and export, enterprises must fully comply with the regulations of the market where they will sell goods. At the same time, enterprises also prepare plans for unfortunate cases where trade remedies are applied to the industries they are producing and exporting in order to make timely adjustments in production and business and find new markets in order to reduce the losses

 

Mr. Carsten Schittek, Head of Trade Department, EU Delegation to Vietnam said: “In the post-Covid-19 context, trade between Vietnam and the EU continues to expand, but there will be changes in production structure of products, consumer trends, trade methods. However, the consumer requirements of the EU people are that the product must have its origin, and the production process must be clear from the production of raw materials to the completion of the product. Enterprises that fulfill the conditions on goods are easy to enter the EU market in large quantities and for a long time.

 

In addition to the EU market, other markets such as the United States, Japan, South Korea, etc. also have very high requirements for goods quality and origin. For example, for garments, many countries require clear origin, from the production of cotton, weaving, and fabric to sewing the finished product.

 

Mr. Le Bach Long, Director of Nam Long Co., Ltd (Long Thanh District), cum Vice Chairman of Dong Nai Young Entrepreneurs Association shared: “Goods exported to Japan and Europe have very high requirements for quality, design, origin, and production process. However, goods that meet the above requirements are easy to expand the consumption market in these countries and others. Enterprises producing goods with clear origin, applying modern and environmentally friendly technologies will reduce risks of trade remedies.

Vi Quan

 

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