With the Vietnam-EU Free Trade Agreement (EVFTA) set to take effect in July after gaining the approval of the National Assembly, the pact is set to open up a wealth of opportunities for local businesses to boost production and exports, although some believe that there are potential risks of trade conflicts occurring

Statistics released by the Department of Trade Remedies under the Ministry of Industry and Trade (MoIT) indicate that there had been roughly 160 trade remedy cases initiated by 19 countries and territories regarding investigations into Vietnamese exports by the end of March. The countries which initiated the majority of investigations were the United States, Turkey, India, and the EU. This is thought to pose a risk of a potential trade conflict occurring when the EVFTA comes into force.

In order to assist Vietnamese businesses in dealing with the risks and challenges of potential trade conflicts when the EVFTA is implemented,Le Trieu Dung, director general of Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade stated that research, forecast, and warning activities must be intensified in a bid to cope with trade remedies which can be applied to Vietnamese exports, including investigations against evasion of trade remedies

In addition, the MoIT has proposed that the government should bring cases to the WTO Dispute Settlement Mechanisms, whilst the ministry has co-ordinated efforts with the Ministry of Agriculture and Rural Development, the Vietnam Association of Seafood Exporters and Producers, as well as enterprises to successfully handle two WTO disputes relating to anti-dumping taxes imposed on Vietnamese catfish and the Catfish Monitoring Program of the US.

“Every week, the Trade Remedies Authorities publishes an early warning report which is also disbursed among associations in order to disseminate information to businesses.

Indeed, the MoIT has also submitted a report to the government for approval of a project to build and effectively operate an early warning system on trade remedies to support the Vietnamese business community be proactive in using and effectively responding to trade remedy measures, thereby protecting their legitimate interests, ” the representative said.

“These efforts have helped to create a basis for the US to recognise that the country’s catfish inspection system meets conditions equivalent to those of US standards, ensuring that local catfish is exported in a consistent manner to the huge market," the trade official said. Moreover, Vietnamese exporters have been urged to fully grasp legal regulations and factual investigations of exporting countries in order to be active in responding to the situation in an effective manner.

Additionally, exporting firm should not become heavily dependent on a single market but be active in seeking new export markets, persifying markets, and products, whilst gradually shifting from competition strategies by offering competitive prices and developing a quality brand, he noted.

Source: VOV

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