The imposition of antidumping tax on Vietnamese garments and textiles is still possible, even since the US affirmed in early November that they “have not found any evidence of dumping in the US.” According to the Vietnamese Ministry of Industry and Trade, the US Department of Commerce (DOC) decided to exclude antidumping investigations against five Vietnamese apparel categories (trousers, chemise, swimwear, underwear and sweaters) for lack of evidence when concluding the first monitoring period from January to July 2007.
This is the first conclusion given by DOC since this country started the monitoring programme on apparel and textiles imported from Vietnam in early 2007, which aimed to find evidence for an antidumping case on Vietnam-originated apparels. Le Quoc An, chairman of Vietnam Textile and Garment Association said, “Based on the criteria given by DOC, especially the price aspect, in which DOC compares the price of imported materials into Vietnam and the price of goods exported to the US with the corresponding rates in a country with the same development as Vietnam, their conclusion that ‘There is no evidence to prove Vietnam committed dumping’ is an obvious truth.”
However, An said, Vietnamese apparel and textile enterprises still feel disappointed because DOC is keeping the monitoring mechanism on apparels and textiles imported from Vietnam. This means that DOC will deliver another assessment in March 2008, six months after the first one. The unilateral imposition of a monitoring mechanism on Vietnamese garments and textiles still generates many disadvantages against the Vietnamese industry in the coming time, because American importers are seeking suppliers for 2008 sale plans. As a result of this mechanism, they still hesitate to order from Vietnam.
The Vietnam Textile and Garment Association will continue struggling to demand the US to remove this regulation because, in principle, the antidumping investigation stems from negative impacts on the US industry from commodities imported from Vietnam. In fact, the US imports categories of Vietnamese garments and textiles that are hardly manufactured at in within the US. In addition, the quantity of Vietnamese apparel and textiles is small in comparison with that from China and India, but the US only applies this monitoring mechanism on Vietnam’s goods. This is unfair treatment.
To develop the garment and textile trading relationship and satisfy the demand of businesses of the two nations, the Vietnamese Ministry of Industry and Trade continued protesting the US monitoring programme on Vietnamese apparel and textiles and demanded DOC end this programme because it violates non-discrimination clauses under the WTO and Clause XXIII of the GATT Agreement 1997. This discrimination seriously limits Vietnam’s benefits after it joined the WTO, in which Vietnam should be treated like other members of the WTO.
Initially, Vietnam will require the US to eliminate monitoring on categories the US does not manufacture or manufactures in small amounts, and categories in which imports from Vietnam increase in parallel with other countries. At the same time, the Ministry of Industry and Trade also reminded Vietnamese apparel manufacturers and exporters to strictly follow instructions related to the US monitoring programme, given by the Ministry of Industry and Trade, General Department of Customs and the Vietnam Chamber of Commerce and Industry (VCCI). The clear declaration of customs procedures and origins of goods will help Vietnam apparel firms establish long-term business relationships with the US market. In the coming time, the Ministry of Industry and Trade will set up a panel to investigate enterprises alleged to commit trade fraud or unhealthy competition, such as goods bearing an incorrect origin, exporting more than production capacity or selling goods at much lower price rates than average.
The second conclusion of DOC will be given in March 2008. The US side will continue supervising commodity flows from Vietnam until then, continuing to make US companies hesitate to order from Vietnam. According to An, the above conclusion of DOC will make US importers feel more secure in ordering apparel from Vietnam and make Vietnamese firms feel more secure in taking orders from the US.
Vietnam is estimated to earn US$6.4 billion from apparel and textile export in the first 10 months this year, in which the US market contributed more than half. The US is forecast to spend US$4.25 billion on garments and textiles from Vietnam this year, up 40 per cent against 2006.
Nguyen Ly
Vietnamese
