Chinese association poses high risk in anti-dumping investigation

Last update 16:00 | 09/05/2017
VietNamNet Bridge – Vietnam will have to pay a heavy price if its products continue to be associated with Chinese, economists have warned.vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, WTO, anti-dumping duties, DOC

Many products including iron, steel and wood from Vietnam are under an investigation by the US Department of Commerce (DOC) and may be subject to anti-dumping duties.

Dinh Son Hung, former deputy head of the HCMC Institute for Development Studies, said the US side said it decided to investigate products from Vietnam because it suspects they originated from China but were labeled as Vietnamese.

“I am not sure about that, but the move reminds me of an implied threat about a commercial retaliation against China which was conveyed when Donald Trump took office as the new US President,” Dr Nguyen Van Minh, a renowned economist, said when answering Dat Viet’s interview.

Minh recalled moves taken by the US recently to solve the country’s deficit in the trade with China. It has prohibited the import of many harmful products and imposed technical barriers.

Vietnam will have to pay a heavy price if its products continue to be associated with Chinese, experts warned

“With the drastic measures applied by the US, Chinese manufacturers will have to evade the blow from the US and ‘borrow’ others’ brands to export products to the US,” Minh commented.

“The reaction by the US DOC shows that it can clearly see the tricks played by Chinese enterprises,” he continued. “This also shows that the US understands the Vietnamese production capacity.”

Both Hung and Minh commented that the probe is ‘not a good thing’ for Vietnam.

“This can be seen as a warning for Vietnam. If it continues following the way of importing materials for domestic production and export, its enterprises won’t be able to develop, while their products will be boycotted,” Hung said.

He went on to say that this must not be right way for sustainable development, if Vietnam continues focusing outsourcing —  if it chooses the easier way, rather than the more difficult way which requires heavier investments and greater efforts.

The worrying thing is that the anti-dumping investigations have been taken recently not only by the US and EU, Vietnam’s major export markets, but also by other countries including Canada, Turkey, South Korea, Poland, or Columbia and Peru, where Vietnamese products account for a small proportion. And most of the cases have relations with the Chinese market.

“As the products are labeled as ‘Vietnamese’ products, the reputation of the national brand will be affected,” he warned.

Minh said if Vietnamese enterprises don’t want to be ‘buried in the same hole’ with China, they must apply measures to improve product quality and prove the product origin by increasing the localization ratio to at least 70 percent.

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This entry was posted in Economics - Kinh tế, Export - Xuất khẩu and tagged , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net). I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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