Trade defense to protect production and businesses

Mr. Chu Thang Trung, Deputy Director of the Department of Trade Defense.

Along with efforts to improve the capacity of Vietnamese enterprises in the international market, meeting strict standards to compete, on the contrary, Vietnam is also using trade remedies to protect domestic production. On the occasion of the Vietnam Trade Remedies Forum held in Ho Chi Minh City on September 25, Mr. Chu Thang Trung, Deputy Director of the Trade Remedies Department ( Ministry of Industry and Trade ) had discussions on this issue.

Enhance adaptive capacity

* Sir, in the integration process, how does PVTM face the protectionist measures of other countries?

- This is inevitable when the value of Vietnam's goods exports is increasing. Investigations not only increase in number but also become more complicated when many countries investigate new and unprecedented contents. Along with that, the products being investigated are increasingly diverse. These cases cause Vietnam's export goods to face many challenges, especially the risk of losing market share in key markets, increasing legal costs and affecting the reputation of businesses.

* What requirements and challenges does that pose for Vietnam, sir?

- Protectionist policies are reappearing in many new forms. Developed countries are increasingly tightening regulations related to supply chains, origin, labor, environment, sustainable development and climate change response. These non-tariff barriers are putting considerable pressure on Vietnam's export goods. Vietnam's products are increasingly at risk of being subject to trade remedies investigations. Currently, the products under attention include: steel and steel products, aluminum, rubber and plastics, fibers, construction materials, wood and wood products.

Foreign customers visit a wooden furniture booth at an international furniture exhibition in Ho Chi Minh City. Illustrative photo

In fact, recent cases are increasingly complex, the scale of investigation is expanding and the processing time is prolonged, requiring close coordination between ministries, branches, localities and the business community. When a business's products are targeted for investigation, there is a risk of being taxed, reducing the level of competitiveness. Importers will also be hesitant to sign new contracts with taxed markets. These are issues that Vietnam needs to address.

* Faced with such challenges, what mindset should businesses have, sir?

- Enterprises need to proactively improve their competitiveness by investing in product research and development, ensuring quality according to international standards, and further increasing the added value of their products. Enterprises must also regularly update the legal regulations and trade policies of foreign markets. This is a key factor to minimize risks and avoid violations.

“Vietnamese enterprises need to proactively learn about basic regulations on trade remedies in importing countries and regularly monitor the trade remedy situation in the world market to prepare to respond to the risk of being investigated.”
Mr. CHU THANG TRUNG, Deputy Director of the Department of Trade Defense

To limit the damage if unfortunately falling into an unfavorable situation, businesses need to build a team of legal and commercial experts to support in analyzing, evaluating and providing effective response strategies. When an incident occurs, it is necessary to coordinate closely and comply with the requirements of the importing country in a public and transparent manner, because that will be an important basis for assessing whether there is a violation or not.

Another issue is that strengthening cooperation with international partners, participating in industry associations and taking advantage of free trade agreements will also help businesses expand their access to new markets. Applying synchronous solutions will help businesses build strong, transparent brands and build trust with partners and customers to reach further in the international market.

Proactive PVTM for domestic market

* Along with proactively responding to risks from the international market, the use of PVTM measures for the domestic market is also very important. Can you share more about this?

- Vietnam has signed and participated in 17 free trade agreements, gradually reducing the average import tax rate on imported goods. The capacity of Vietnamese enterprises is competing strongly and equally with imported goods, however, there are still some imported goods that are competing unfairly such as dumping to dominate the market, which forces us to have defense measures. These measures have brought practical benefits, protecting and creating conditions for the formation and development of a number of basic industries, construction industry, consumer industry such as: metallurgy, chemicals, construction materials, agricultural processing.

And in order to defend effectively, it is required to have a firm grasp of international knowledge and regulations on anti-dumping, anti-subsidy, self-defense, and anti-evasion of trade remedies. This requires careful research and in-depth analysis to ensure compliance with the regulations of the World Trade Organization (WTO) as well as the free trade agreements that Vietnam participates in.

For businesses, using trade remedies also forces Vietnamese businesses to enhance their competitiveness, improve product quality and be more transparent in production and business activities. This requires close coordination between businesses, industry associations and state management agencies in monitoring, responding promptly and building sustainable export strategies.

* To support and protect businesses in the coming time, what solutions will the Department of Trade Remedies have, sir?

- We will focus on propaganda and dissemination of knowledge on trade remedies to the business community, in order to be more proactive in protecting legitimate rights. At the same time, we will proactively research and forecast global trade trends to promptly identify potential risks; promote in-depth training of staff on skills to handle trade remedy cases; build a modern database system, integrate information on trade remedy measures of countries and strengthen international cooperation to exchange experiences and improve response capacity.

To protect the domestic market, up to now, the Department of Trade Remedies has conducted 48 new investigations and 35 reviews of applied trade remedies. On that basis, the Department of Trade Remedies has recommended the Ministry of Industry and Trade to apply 36 trade remedies to imported goods into the Vietnamese market.

These are very important issues that, through implementation, will provide timely recommendations for businesses in the face of fluctuations; helping businesses strengthen their internal strength and maintain the position of Vietnamese goods in the international market in the context of increasingly deep integration.

* Thank you very much!

Vuong The (performed)

Source: https://baodongnai.com.vn/dong-nai-cuoi-tuan/202510/phong-ve-thuong-mai-de-bao-ve-san-xuat-va-doanh-nghiep-ee40a9a/