|Pangasius – basa is an export product of Vietnam initiated by the US to investigate trade remedies. Source: Internet.|
Advantages of investing in a green economy
2022 saw growth in two-way trade between Vietnam and the United States. According to Do Ngoc Hung, Trade Counselor, Vietnam Trade Office in the US, Vietnam takes advantage of the opportunity to expand its market and export to the US.
But along with opportunities also comes challenges, which is the number of cases on investigation and application of trade remedies, especially the application of measures to combat tax evasion and anti-selling. Dumping, and anti-subsidy with Vietnamese goods has increased in recent times.
“For Vietnamese goods, in fact, the United States is also one of the members of the WTO that actively applies investigation and application of trade remedies to ensure fair competition with exported and domestically produced goods. This tool the US applies not only to Vietnam but also to countries with an increase in exports to the US,” said Do Ngoc Hung.
Therefore, in order to continue promoting two-way trade between Vietnam and the United States, adapting to strict trade remedy measures, according to the Vietnam Trade Office in the United States, Vietnamese businesses need to focus on new trends. For example, the trend of the green economy.
The United States is one of the world’s leading countries in implementing “green economy” policies to promote economic growth. Accordingly, the US Government has implemented new policies to promote economic development through energy development, green economy development, implementation of energy saving policies, reduction of environmental pollution and implement renewable energy.
The Government of Vietnam’s investment in the green economy as well as calling for the participation of Vietnamese businesses in the green economy can limit many direct risks such as supply chain disruptions, market impacts, etc. market, reputational risk, indirect risk such as competition for resources, and risk of legal regulation.
Enterprises will receive many opportunities and incentives to enter the climate-resilient market, including developing new products and services to meet market needs; open new markets for existing products and services; cost savings throughout the value chain; cooperation through the supply chain; enhance the reputation and brand value.
Besides, when the pandemic is under control, it is expected that bilateral trade between Vietnam and the US will continue to grow. At the same time, Vietnamese exports are likely to continue to face US trade remedy investigations.
Currently, the United States is also the market that initiates the most trade remedy investigation with Vietnam’s exports. As of December 2022, the United States initiated investigations in a total of more than 52 cases, mainly anti-dumping and anti-circumvention investigations, anti-dumping, anti-subsidy through origin fraud, and illegal transshipment. The investigated products are quite diverse, ranging from agricultural – forestry – fishery such as wood, pangasius, shrimp, and honey, to industrial products such as tractors, steel, and cutting machines. This shows that the US is strengthening the management of items that have been subject to trade remedies to ensure the effectiveness of the applied measures.
Actively adapt, take advantage of opportunities
According to the Vietnam Trade Office in the United States, when exporting through this market, enterprises need to actively study the concluded cases to prepare documents to prove the export shipments to avoid high anti-dumping tax. In order to export goods stably and sustainably to the US, it is necessary to monitor and comply with the recommendations and early warnings of the Ministry of Industry and Trade’s functional agencies on trade remedies.
At a recent seminar, Nguyen Thi Phuong Thao, IDVN Law Office, said that businesses must put aside fear, be proactive and serious in participating in legal cases. In addition to information related to technical criteria and market access, it is necessary to actively learn the basic regulations on trade remedies in those countries. Because when investigating trade remedies, each country will follow its own regulations.
Besides, businesses must also regularly monitor and update information about the market. Because sometimes Vietnam’s competitors, such as China or India, are subject to trade remedies, which is both an advantage and a risk for Vietnam. “The advantage is that when Chinese or Indian businesses are removed from an import market, there will certainly be more opportunities for Vietnamese goods, but at the same time there is a risk that Vietnam may become the next target,” Thao said.
Therefore, in order to be proactive in dealing with risks, enterprises need to prepare in advance and this preparation will be of great significance. Even in terms of funding, if a lawsuit occurs, it will be defended as quickly as possible.