EC Concludes Investigation of Eight Vietnamese Footwear Firms

A European Committee delegation has just concluded a two-month investigation on eight local footwear companies, but the investigation’s preliminary findings have not yet been disclosed, says the Ministry of Trade (MoT).

 

The delegation arrived in Vietnam in September to conduct a comprehensive investigation on local firms involved in the anti-dumping case, following a petition filed on July 7, 2005, by the European Confederation of Footwear Industries, which accounts for 40 per cent of leather shoes sold in the EU.

 

The enterprises, selected by the EC after surveying 115 local companies, include the four foreign-invested firms of Pou Yuen Vietnam, Pou Chen Vietnam, Taekwang Vina Industries and the Kainan Joint-Venture Company. Footwear Company No. 32, Dona Bitis, Binh Tien Import-Export Company, and Hai Phong Leather and Footwear Company were the others selected by the EC team.

 

According to the Ministry of Trade’s Department of Competition Administration, the selected companies had to answer questionnaires on anti-dumping. Also during the investigation, the local enterprises had to clarify and verify their costs for infrastructure construction, facilities, production, salaries, social welfare for laborers and other expenditures. Based on these costs, the producers had to prove that they did not dump the goods onto the EU market.

 

Deputy Chief of the Vietnam Leather and Footwear Association (Lefaso) Nguyen Duc Thuan said most of the producers were well-prepared for the investigation. Most had used sub-contracts with international conglomerates in a third country to export to the EU, so they did not make the decisions on the products’ sale prices, Thuan added.

 

“We expect that the EC may release a preliminary decision in January or February next year. However, this is just a prediction, and everything depends completely on the EC’s decision,” said Thuan.

 

The EC will announce the preliminary results of the investigation, and then the results will be submitted to the concerned European authorities and a final decision will be issued.