Vietnam launches first anti-dumping wood sector probe

11:09 | 20/07/2019 Trade

(VEN) - The Ministry of Industry and Trade (MoIT) recently promulgated Decision 940/QD-BCT, launching an anti-dumping investigation into industrial medium density fiberboard (MDF) imported from Thailand and Malaysia. This is an unprecedented decision since the wood sector became a key exporter of the Vietnamese economy.

vietnam launches first anti dumping wood sector probe
Vietnam has launched the first anti-dumping investigation into imported MDF products

The decision was made based on requests submitted by four domestic MDF producers: VRG Kien Giang MDF Joint Stock Company, VRG Dongwha MDF Joint Stock Company; VRG Quang Tri MDF Joint Stock Company and Kim Tin MDF Joint Stock Company.

These firms claimed that industrial wood board products imported from Thailand and Malaysia had been dumped in the Vietnamese market at a margin of 18.59 percent to 50.6 percent. This dumping was the main cause of damage to Vietnam’s MDF production sector, they alleged.

The MoIT will send questionnaires to related parties to collect necessary information for analyzing and assessing the alleged dumping, the level of damage to the domestic MDF production sector and the causal relationship between the dumping and the damage.

If necessary, based on preliminary investigations, the MoIT may apply temporary anti-dumping measures to prevent significant damage to the industry.

In the past, some Vietnamese export products were subject to anti-dumping measures applied by importing countries. For its part, Vietnam also conducted anti-dumping investigations into some imported products. However, this is Vietnam’s first anti-dumping investigation into imported wood products. Experts praised this decision and the Vietnamese Government’s willingness to use trade defense tools to protect the legitimate interests of domestic wood processing companies. In their opinion, the use of these tools will help Vietnam avoid lawsuits by foreign partners and enhance the value of domestic products.

Nguyen Ton Quyen, Vice President of the Vietnam Timber and Forest Product Association, said the MoIT’s decision to launch an anti-dumping investigation into MDF products imported from Thailand and Malaysia is in keeping with international practices. The investigation also warns businesses of the need to abide by international and Vietnamese laws and regulations, while at the same time reflecting the Vietnamese Government’s determination to ensure transparency in international trade.

Nguyen Ton Quyen, Vice President of the Vietnam Timber and Forest Product Association:

To avoid anti-dumping investigations, businesses need to abide seriously by international and Vietnamese laws and

regulations, as well as to bring into play the community spirit and the social responsibility of each company.

Thanh Ha