Vietnam’s Ministry of Industry and Trade (MoIT) initiated 15 trade probes against foreign goods, while Vietnamese exports are subject to 154 similar cases in the first nine months this year.
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According to the ministry, the low number of trade probes from the Vietnamese side was due to the country’s policy of promoting trade liberalization and only adopting trade protection measures in case of real necessity and in compliance with regulations.
Vietnamese trade protection measures have helped to protect jobs of hundreds of thousands of employees working in various manufacturing sectors, promoting domestic production and supporting the balance of payments, stated the MoIT.
The MoIT said such measures also boost state budget revenue by collecting trillions of Vietnamese dong in taxes and protect domestic industrial sectors that make up 6.8% of Vietnamese GDP in 2018.
According to the MoIT, a number of enterprises have improved their performance significantly and gained profits such as DAP-Vinachem Fertilizer, Viet Trung Steel, Viet Y Steel, Pomina Steel, among others.
More importantly, trade protection measures reduce Vietnam’s dependence on foreign goods, particularly with essential goods for economic development such as steel, fertilizer, contributing to the nation’s modernization and industrialization cause.
Minister of Industry and Trade Tran Tuan Anh issued Decision No.755 providing trade protection measures to support the development of Vietnamese industrial sectors in the 2018 – 2020 period, with vision to 2025.
Under this decision, the government would set up framework supporting the implementation of trade protection measures that are in compliance with international commitments to nurture domestic production.
The MoIT addressed concern that trade protection measures would lead to scarcity of goods, surge in good prices, or lack of motivation for local enterprises in enhancing competitiveness.
“In reality, many companies have increase export activities after trade protection measures in place, including Hoa Phat Steel, DAP Vinachim, Ton Dong A, indicating high competitiveness in international trade,” added the MoIT.
Moreover, these measures are targeted at certain countries and territories, so other countries could still export products to Vietnam without additional taxes and compete fairly with domestic goods, asserted the MoIT.
Meanwhile, 154 trade probes against Vietnamese goods are initiated in 19 countries and territories, including the US with 30 cases, Turkey with 21, India with 20 and the EU with 14.
However, Vietnam successfully appealed in 57 out of 137 cases that have investigation closed, or 42% of the total, while filing complaints to the WTO in five cases, including three ended with positive results and two are under arbitration.
“With such positive results, Vietnam still maintains high export revenue and even get higher shares in export markets in several cases,” stated the MoIT.
