In the first 9 months of 2019, Vietnam’s exports to the US market increased by 34% to US $ 10.9 billion, leaping from 12th to seventh on the list of US suppliers of goods. . Previously, there was speculation that Vietnam could outstrip Italy, France, the United Kingdom and India to rise to a high position in the top countries exporting goods to the US. If this growth continues, the total value of Vietnam’s exports to the US could reach $ 69 billion.
Among goods exports to the USA, steel is a major commodity and is considered a key product. Vietnam become to stands out among the region whose exports are heavily affected by the US-China trade war. Vietnam’s accession to free trade agreements (FTAs) such as CPTPP, EVFTA will help Vietnamese goods have more opportunities and increase competitiveness when exporting to fastidious markets like the US.
In the context of the US-China trade war, China has been imposed a lot of taxes by the US and the increase of Vietnam’s imports into the US will certainly not fall out of the control of the US government.
For example, some of Vietnam’s steel products have been subjected to trade remedies such as anti-dumping tax, anti-subsidy tax, anti-evasion investigation, such as CRC and CORE uses hot rolled materials imported from Taiwan and Korea with a tax rate of more than 400%. This proves that Chinese goods have borrowed in a detour to transfer goods to Vietnam and then export to the US.
Besides, there are many Chinese products that move production to Vietnam to avoid origin problem. This may inadvertently cause Vietnam to violate its commitments on goods origin, if not careful, it may be subject to anti-dumping or subsidy.
Chinese goods taking advantage of Vietnam’s path to evade origin will certainly cause big disadvantage for Vietnam. To minimize this problem, Vietnamese businesses need to carefully consider the origin of goods before importing or exporting. Besides, it is also necessary to improve the understanding of the Trade Defense to avoid the consequences later.
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Ms Lan – Juridical Manager of MRS Steel