HCMC – The Vietnam Competition Authority (VCA) has warned India may launch a probe into the possible dumping of Vietnamese rubber on its market.

VCA cited Indian news agency IANS as saying in September of this year that producers in India proposed their government impose an anti-dumping duty or increasing import tax on rubber.

Such a move comes due to a sudden increase in rubber imports and a 16% drop in price in January-August. Though India is the world’s fifth biggest natural rubber producer, its rubber imports have picked up four times in the past six years.

At a meeting on export performance in HCMC in September, Bui Trung Thuong from the Vietnam commercial section in India said in addition to mobile phones, farm produce and foodstuffs like coffee, rubber, pepper, cashew and seafood are potential products for export to India.

However, enterprises should be aware that the Indian government sets export and import targets annually and may place a ban on a certain product or remove it for a short period of time, especially farm produce. Therefore, enterprises may fail to fulfill their already-signed contracts.

Statistics of the General Department of Customs showed Vietnam exported 58,328 tons of rubber to India in the first three quarters with total revenue of over US$108 million, equivalent to 8.3% and 9% of Vietnam’s total respectively.

India is currently the third biggest importer of Vietnam’s rubber behind China and Malaysia.

According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Indonesia, Thailand and Vietnam account for 42%, 26% and 24% of India’s natural rubber imports.

The director of a rubber company in Dong Nai Province said an dumping investigation as proposed by Indian firms would require a lot of documents, so his company would better cut export volume.

Source: Saigon Times

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