The steel industry can only develop well if trade defence measures are strengthened, photo Le Toan

According to the Ministry of Industry and Trade (MoIT), by the end of 2024, Vietnamese goods had been investigated in over 270 trade defence cases in 25 markets, including some that have free trade agreements with Vietnam.

Dinh Quoc Thai, general secretary of the Vietnam Steel Association, emphasised that steel is a highly competitive industry, but there is always a global oversupply situation, so it is easy for foreign enterprises to sell at low prices to resolve inventory, especially during difficult periods when export markets are facing complexities.

“In recent years, steel has been one of the industries with the largest number of trade defence investigations, not only in Vietnam. It is necessary to strengthen trade defence measures so that the steel industry has the opportunity to develop, has the capacity to compete fairly with imported goods in the domestic market, thereby building a complete value chain from hot-rolled steel, cold-rolled steel, galvanised steel, with enough capacity to expand exports,” said Thai.

To prevent and minimise trade remedies cases, in 2020 the government approved a scheme on building and effectively operating a trade remedy early warning system. The objective was to warn about export goods at risk of being investigated by foreign countries for trade remedies, helping businesses prepare in advance, and helping competent authorities carry out focused and key support activities for businesses.

Trinh Anh Tuan, general director of the Trade Remedies Authority under the MoIT, said that through early warning work, the ministry has promptly approached businesses to provide information, helping businesses understand the principles, investigation processes, and tasks that businesses need to perform with possible scenarios. Thanks to that, businesses have time to prepare to fully and accurately meet the requirements of foreign investigation agencies.

“Some product lines with high risks of being investigated for trade defence are plywood, wooden cabinets, anti-corrosion steel, hot-rolled steel, prestressed steel cables, welded steel pipes, aluminium profiles, copper pipes, float glass, and PET plastic,” Tuan said. “Enterprises exporting these products need to increase monitoring, learn about the regulations on trade defence investigations of the importing country, and closely coordinate with the authorities to effectively deal with these risks.”

The pressure from trade remedies will go hand-in-hand in the context of Vietnam’s increasing exports as well as its large trade surplus. Although creating many issues, trade remedy cases also open up opportunities for Vietnamese enterprises to improve competitiveness and consolidate their position in the international market.

Trade remedies often target issues of origin fraud, dumping, or non-compliance with environmental and labour standards, Tuan added. Meeting these strict requirements not only helps enterprises overcome legal barriers but also builds trust with consumers and partners in the import market.

From the perspective of the wood industry, Ngo Si Hoai, general secretary of the Vietnam Timber and Forest Products Association, said that from the stage of filing a lawsuit, businesses have suffered losses and during the investigation process.

“If they are taxed at a high rate, it is like being embargoed and there is no way to export goods. In particular, when being put on a blacklist for trade defence investigations, it is considered as having to say goodbye to the market with huge losses,” Hoai said.

In the face of trade defence investigations, businesses are important entities, needing to be prepared with knowledge and defence skills, Hoai added.

“Businesses with trade defence skills can overcome difficulties, and the risk of being put on the blacklist is not high. Accordingly, in danger there is opportunity. If we strengthen corporate governance, practice accountability, and transparent production, we have the opportunity to develop the market and export sustainably,” Hoai said.