Log in
Business

Vietnam plywood may escape US anti-dumping probe

Vietnamese products made from local materials or imported from countries other than China could escape anti-dumping sanctions.

The fact that the amount of wood harvested annually in Vietnam is sufficient to produce 8.4 million cubic meters of plywood, four times higher than the exported volume, may help the country win over US accusations of the product using Chinese components to circumvent US duties on imports from China.

 Vietnamese products made from local materials or imported from countries other than China could escape anti-dumping sanctions.

In 2019, total export of hardwood plywood in Vietnam reached 2.5 million cubic meters, significantly lower than the country’s production capacity, Tuoi Tre cited a report from the Trade Remedies Authority of Vietnam.

As a result, Vietnam is capable to provide sufficient input materials for domestic plywood production. Under the US perspective, Vietnamese products made from local materials or imported from countries other than China could be exempted from anti-dumping duties.

At a press conference on June 11, Spokesperson of the Vietnamese Ministry of Foreign Affairs (MoFA) Le Thi Thu Hang urged any possible US probe into plywood imports from Vietnam should be fair.

Vietnam remains steadfast on enhancing bilateral trade–economic–investment relations with the US towards building harmonious, sustainable and mutually beneficial ties, Hang added.

Hang stated Vietnam is committed to adhering by WTO rules and has been focusing on fighting against trade fraud and the circumvention of customs duties.

According to the Ministry of Industry and Trade, after initiating a probe, the US would send questionnaires to traders related to Vietnam for more information.

The US Department of Commerce (DOC) would take into account five factors to determine whether a product from certain country is considered to have circumvented trade protection measures, including (i) the level of investment; (ii) the level of research and investment; (iii) the nature of the production process; (iv) the extent of production facilities; and (v) whether the value of the processing performed in the country represents a small proportion of the value of the merchandise imported into the US.

In case the DOC concludes Vietnam’s hardwood plywood is in fact has circumvented US duties, the product would face anti-dumping duty of 183.6% and anti-subsidy duties ranging up to 194.9%, similar to those from China.

In 2019, Vietnam exported around US$300 million worth of plywood to the US.

Reactions:
Share:
Trending
Most Viewed
Related news
Vietnam, US conclude third round of reciprocal trade agreement talks

Vietnam, US conclude third round of reciprocal trade agreement talks

The talks marked a constructive step toward a future deal aimed at promoting balanced and sustainable economic ties between the two countries.

Vietnam promotes low-emission rice to access high-value markets

Vietnam promotes low-emission rice to access high-value markets

As part of its strategy to develop sustainable agriculture and reach premium international markets, Vietnam is advancing the production and export of low-emission rice.

Vietnam stock market set to ride on local cash inflows in June

Vietnam stock market set to ride on local cash inflows in June

The market is expected to continue its rally despite some short-term corrections on lower market confidence.

H&M, Syre Group to expand retail, green textile industries in Vietnam

H&M, Syre Group to expand retail, green textile industries in Vietnam

Swedish companies plan to expand green investment in Vietnam's textile and garment industry.

Vietnam’s AI economy to reach US$130 billion by 2040 

Vietnam’s AI economy to reach US$130 billion by 2040 

The report identified AI as a key driver of Vietnam’s future economic growth.

Hanoi breaks ground on $7.3 million craft village industrial cluster

Hanoi breaks ground on $7.3 million craft village industrial cluster

The new craft village industrial cluster will help ease the shortage of production space for local households and businesses.

Prime Minister calls for Swedish investment in Vietnam’s tech infrastructure

Prime Minister calls for Swedish investment in Vietnam’s tech infrastructure

Vietnam places a high priority on partnering with trusted, long-time friends like Sweden in advancing high-tech sectors, as it seeks to attract quality investment and foster sustainable development.

E-commerce platforms to pay taxes on behalf of sellers 

E-commerce platforms to pay taxes on behalf of sellers 

Under the new rules, a portion of each transaction will be deducted to pay taxes once payment is completed.