Trade defense to protect production and enterprises

Vietnam is becoming increasingly integrated into the global market, with import and export turnover continuing to rise. In the context of many countries around the world applying trade defense measures to protect domestic production, Vietnamese enterprises are also facing a growing number of trade defense cases.

Chu Thang Trung, Deputy Director General of the Trade Remedies Authority of Vietnam

Along with efforts to enhance the capacity of Vietnamese enterprises in the international market and meet stringent standards to compete, Vietnam has also been applying trade defense measures to protect its domestic production. On the occasion of the Trade Defence Forum held in Ho Chi Minh City on September 25, Chu Thang Trung, Deputy Director General of the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade, shared his insights on this issue.

Enhancing adaptive capacity

 * In the process of international integration, how does trade defense work to deal with the protective trade barriers imposed by other countries?

- That is inevitable as the export value of Vietnamese goods continues to rise. The number of investigations has not only increased but also become more complex, with many countries initiating inquiries into new and unprecedented issues. At the same time, the range of products under investigation has become more diverse. These cases pose significant challenges for Vietnam’s export goods, particularly the risk of losing market share in key markets, higher legal costs, and negative impacts on the reputation of enterprises.

* What requirements and challenges does this pose for Vietnam?

- Protective policies are re-emerging in many new forms. Developed countries are increasingly tightening regulations related to supply chains, origin, labor, environmental standards, sustainable development, and climate change mitigation. These non-tariff barriers are placing significant pressure on Vietnam’s export goods. The risk of Vietnamese products being subjected to trade defense investigations is rising. Currently, closely monitored product categories include steel and steel products, aluminum, rubber and plastics, yarn, construction materials, and wood and wood products.

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

In fact, recent cases have become increasingly complex, with broader investigation scopes and longer processing times, requiring close coordination among ministries, sectors, local authorities, and the business community. When a business's products are targeted for investigation, they face the risk of being subject to additional tariffs, which reduces their competitiveness. Importers also tend to hesitate in signing new contracts with suppliers from markets under tariff measures. These are issues that Vietnam needs to address.

* In the face of such challenges, what mindset should enterprises adopt?

- Businesses need to proactively enhance their competitiveness by investing in research and product development, ensuring quality in line with international standards, and further increasing the value added to their products. They must also stay regularly informed about legal regulations and trade policies in foreign markets. This undertaking is a key factor in minimizing risks and avoiding violations.

“Vietnamese enterprises need to proactively study the basic regulations on trade defense measures in importing countries and regularly monitor global trade defense developments to be well prepared for potential investigations.”

CHU THANG TRUNG, Deputy Director General of the Trade Remedies Authority of Vietnam

To minimize potential losses in the event of unfavorable circumstances, enterprises need to establish teams of legal and trade experts to assist in analyzing, assessing, and formulating effective response strategies. When incidents occur, they must coordinate closely and comply with the importing country's requirements openly and transparently, as this serves as a crucial basis for determining whether any violations have occurred.

Another important issue is strengthening cooperation with international partners, participating in industry associations, and leveraging free trade agreements to expand market access opportunities. Implementing these synchronous measures will help enterprises build strong, transparent brands and foster trust with partners and customers, enabling them to expand their reach in the global market.

Proactive trade defense for the domestic market

* Alongside proactive measures to respond to risks from international markets, applying trade defense measures to protect the domestic market is also of great importance. Could you elaborate on this issue?

- Vietnam has signed and participated in 17 free trade agreements, gradually lowering the average import tariff on foreign goods. Vietnamese enterprises are now competing strongly and fairly with imported products. However, certain imports continue to engage in unfair practices, such as dumping to dominate the market, prompting the need for trade defense measures. These measures have delivered tangible benefits, helping to protect and support the formation and development of several foundational industries, including construction, consumer sectors, metallurgy, chemicals, building materials, and agricultural processing.

To ensure effective defense, it is essential to have a thorough understanding of international regulations on anti-dumping, anti-subsidy, safeguard, and anti-circumvention measures. This endeavor requires in-depth research and careful analysis to ensure compliance with the rules of the World Trade Organization (WTO) and the free trade agreements to which Vietnam is a party.

For enterprises, employing trade defense measures also forces Vietnamese businesses to enhance their competitiveness, improve product quality, and ensure greater transparency in production and business operations. This process demands close coordination among businesses, industry associations, and state management agencies to monitor developments, respond promptly, and build a sustainable export strategy.

* To support and protect enterprises in the coming time, what measures will the Trade Remedies Authority of Vietnam implement?

- We will focus on disseminating and promoting knowledge about trade defense to the business community, enabling them to protect their legitimate interests proactively. At the same time, we will actively conduct research and forecast global trade trends to identify potential risks promptly; strengthen specialized training for staff in handling trade defense cases; build a modern, integrated database system on trade defense measures implemented by other countries; and enhance international cooperation to exchange experiences and improve response capacity.

To protect the domestic market, the Trade Remedies Authority of Vietnam has conducted 48 new investigations and 35 reviews of ongoing trade defense measures to date. Based on these activities, the Authority has recommended that the Ministry of Industry and Trade apply 36 trade defense measures on imported goods entering the Vietnamese market.  

These are crucial issues, and through their implementation, timely recommendations can be provided to enterprises in response to market fluctuations. This undertaking will help businesses strengthen their internal strength and maintain the position of Vietnamese goods in the international market amid increasingly deep global integration.

Sincere thanks to you!

By Vuong The – Translated by Dang Huyen, Minho