Vietnam is preparing for its accession to the World Trade Organisation (WTO) in October with many activities, including concerns on anti-dumping court cases, which can occur at any time. Dinh Thi My Loan, head of the Department of Competition Management, the Ministry of Trade, had an interview with the media on the issue.
To cope with commercial court cases, especially those involving anti-dumping, has become a hot issue. How do you think enterprises, subject to court cases, should prepare to cope with them?
In Vietnam, there has been a high possibility of anti-dumping court cases against local enterprises. Since 1994, when we experienced first anti-dumping court case, there have been 38 court cases against Vietnamese enterprises, including 23 anti-dumping cases and five safeguard cases.
Of the figure, there are ten cases of the EU and the biggest case is the leather upper shoes court case.
From the facts, it is clear that enterprises are required to carefully learn the legal systems of their target countries, especially when Vietnam will accede to the WTO in October. The Standing Committee of the National Assembly adopted three ordinances, including the Ordinance on Anti-dumping Regulations for Goods Imported into Vietnam, the Ordinance on Anti-subsidy of Goods Imported into Vietnam, and the Ordinance on Safeguard Measures against Goods Imported into Vietnam. We then have organised a seminar entitled ‘EU anti-dumping law and issues Vietnamese enterprises should pay attention after Vietnam’s WTO accession.’
Vietnamese enterprises are waiting for a final judgment of the European Council on the leather upper shoes court case. Can you give information about its latest developments?
The leather upper shoes anti-dumping court case is one of the court cases which has produced negative impacts on the footwear industry and over half a million of workers, of whom women account for 80 per cent.
Relevant agencies including the Ministry of Trade, the Ministry of Foreign Affairs and the Ministry of Industry have made great efforts to help the Vietnam Leather Footwear Association to launch appeals against the case. So far, the European Commission and the European Council have not made their final conclusions yet. However, a plan to prolong tariff was rejected and the European Commission has turned to tariff imposition.
However, most EU member countries have not accepted a proposal on tax rates suggested by the Anti-dumping Consultancy Committee for leather upper shoes made by Vietnam and China when they are imported into the European market.
It is a good sign but we still have to wait for the final decision of the European Council on September 6, 2006.
Vietnamese enterprises are subject to anti-dumping court cases. Is it possible that Vietnamese enterprises sue enterprises of other countries for dumping the Vietnamese market?
There have been ideas about the dumping of some imports in the Vietnamese market, such as garments, footwear and electronic goods. However, the Department of Competition Management as the agency in charge of implementing the Ordinance on Anti-dumping Regulations of Goods Imported into Vietnam has not received any petition from Vietnamese manufacturers yet.
To carry out an anti-dumping court case under Ordinance on Anti-dumping Regulations of Goods Imported into Vietnam, in some cases State management agencies, concretely the minister of trade may issue decisions on anti-dumping investigations without petitions from enterprises.
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