HCMC – Malaysia has initiated an anti-dumping investigation into biaxially oriented polypropylene (BOPP) films imported from Vietnam as well as China, Indonesia, Taiwan and Thailand.

The probe, which Malaysia launched last Friday, looks into shipments of film products coded HS 3920.20.200 and AHTN 3920.20.00.20 sent to Malaysia from January 1, 2011 to December 31, 2012, said the Vietnam Competition Authority under the Ministry of Industry and Trade.

BOPP film is made of polypropylene resin and used for labels, book and magazine covers, and packages for foodstuff such as instant noodles, confectionery and coffee.

The investigation came after San Miguel Yamamura Plastic Films Sdn. Bhd. filed a lawsuit.

According to the notice of Malaysia, the plaintiff has provided evidence showing that BOPP films imported from the aforesaid markets have surged in volume.

The company said the alleged dumping had hit the paper industry of Malaysia, so companies in the industry are losing market shares given sales and profit falls.

The specific figures on the increase of Vietnamese film exports to Malaysia are not given in the notice.

Vietnamese producers and exporters have to return the Malaysia questionnaire no later than September 5 this year. As for Malaysia’s anti-dumping and anti-subsidy rules, if parties involved do not provide the necessary information or fail to do so within the prescribed time limit, the Malaysian authorities can make a preliminary or final decision based on the available information.

Recently, the Malaysian Iron and Steel Industry Federation Association has warned against an influx of galvanized and color-coated steel sheets imported from Vietnam and that they would file an anti-dumping lawsuit against Vietnamese products if the situation was not timely adjusted.

Nguyen Chi Mai, head of the trade protection board under the Vietnam Competition Authority, said the current economic slump had led enterprises to lower their selling prices, thus exposing them to possible anti-dumping charges.

According to Mai, businesses in Southeast Asia have initiated many anti-dumping cases recently because they are increasingly aware of the role of trade remedies for domestic industry protection.