The Vietnam Competition Authority plans to organize a public hearing of the country’s first anti dumping investigation regarding stainless steel imports next month, in spite of objections from importers.

Last December, the agency under the Ministry of Industry and Trade concluded that imports from China, Indonesia, Malaysia and Taiwan had been dumped and proposed a tax of 6.45 % to 30.73% take effect in 120 days.

The investigation was launched at the request of local stainless steel producers Posco VST and Inox Hoa Binh, which enjoy a combined market share of 80%. Soon after the agency announced its initial findings, 18 businesses that manufacture stainless steel from imported raw materials raised objections. Once the tax was applied, they'll lose access to raw materials and their competitive edge.

However, Mr Pham Chi Cuong former chief of the Vietnam Steel Association said that “If Vietnamese authorities produce sufficient evidence of dumping, they should take action, because in a long term the dumping of raw materials will hurt the local industry. By filing an anti dumping lawsuit the plaintiffs are simply seeking justice in international trade. In other countries when there is a conflict of interest between producers and importers, authorities tend to protect the former.”

He advised Vietnamese authorities to be careful about imposing the tax, given that it's the first time Vietnam has taken such steps. The country only issued its first anti dumping ordnance in 2004. Stainless steel products are subject to the duty of 0% to 10% when imported into Vietnam. Countries which enjoy free trade agreements with Vietnam, like China and ASEAN countries, are exempt from the duties. That said, Vietnam would not be the first trading partner to take such a step.

Source: ThanhnienNews