Opportunities intertwined with challenges
Vietnam has participated in, signed and implemented 17 Free Trade Agreements (FTAs), including important agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); Vietnam - EU Free Trade Agreement (EVFTA), Regional Comprehensive Economic Partnership Agreement (RCEP).
FTAs are the "door" to expand export markets, creating great opportunities for Vietnamese goods to access the world's leading economies. In particular, key products such as textiles, footwear, agricultural products, seafood, wood, steel, aluminum, etc. are continuously expanding their market share in major markets. There is still a lot of room for development when the demand for Vietnamese goods in many countries is highly appreciated for their quality and competitive prices.
However, the risks of trade defense investigations against Vietnamese export goods are also constantly increasing. Data from the Department of Trade Defense (Ministry of Industry and Trade) shows that, to date, there have been 293 trade defense cases initiated by foreign countries investigating Vietnamese export goods. The cases mainly focus on anti-dumping, anti-subsidy, and self-defense, in which products with large export turnover are often the target of investigation.
Sharing with reporters of Industry and Trade Newspaper, Mr. Nguyen Minh Ke - Chairman of the Vietnam Aluminum Profile Association emphasized that trade defense investigations are a legal tool that many countries use to protect domestic production. Therefore, in the context of deep integration, it is inevitable that Vietnamese goods are initiated to be investigated.
The aluminum sector is a clear example. According to Mr. Nguyen Minh Ke, in the past 5 years, many countries such as India, Australia and recently the United States have continuously initiated investigations into aluminum products from Vietnam. In particular, in 2024, the US market will conduct anti-dumping and anti-subsidy investigations on extruded aluminum products from 14 countries, including Vietnam. This is the first time that Vietnamese aluminum enterprises have faced a case of such scale and complexity.
According to the regulations of the World Trade Organization (WTO), trade defense measures including anti-dumping, anti-subsidy and self-defense are legal and are applied by importing countries to protect domestic production. In particular, although other FTAs aim to reduce trade barriers, member countries still retain the right to apply defense measures to protect domestic interests. This means that the deeper the integration, the greater the risk of facing trade defense lawsuits.
As in the RCEP Agreement, in addition to creating the world's largest free trade area, it also clearly stipulates provisions related to trade defense. Of particular note is the transitional safeguard measure in RCEP, which allows member countries to apply safeguard measures during a certain period if imported goods cause or threaten to cause serious damage to domestic production.
Master the "rules of the game"
In order to effectively implement FTAs, according to the Trade Remedies Authority, the Ministry of Industry and Trade has proactively issued many circulars guiding the implementation of trade defense commitments in FTAs, such as Circular 19/2019/TT-BCT on CPTPP, Circular 30/2020/TT-BCT on EVFTA, Circular 14/2021/TT-BCT for UKVFTA and Circular 07/2022/TT-BCT on RCEP. These are efforts to ensure that the tariff reduction process does not create a shock to the domestic manufacturing industry, while also providing a legal corridor for businesses to have a basis to respond to trade defense cases. Lawyer Nguyen Thanh Ha - Chairman of SBLAW Law Firm assessed that the issuance of circulars guiding the implementation of trade defense commitments in new-generation FTAs affirms the strategic vision of the management agency in internalizing international standards. This helps Vietnam both fully implement its international obligations and effectively utilize the regulations of the common playground to protect national interests and the business community.
In addition, as trade defense measures are increasingly used in the market, the Trade Defense Department has been increasing early warnings about trade defense, helping businesses identify risks from the early stages, thereby preparing data and documents in a timely manner. At the same time, the Department regularly organizes training programs, disseminates international legal knowledge and response skills, helping businesses not to be surprised when being investigated.
However, the increase in global trade defense lawsuits poses an urgent requirement for the Vietnamese business community. It is impossible to respond passively, but needs to be equipped with management capacity, a transparent accounting system, the ability to cooperate with investigative agencies and especially close accompaniment with associations and domestic authorities.
On the other hand, to overcome trade defense barriers, businesses need to consider mastering the "rules of the game" as an essential part of a long-term export strategy. This not only helps limit risks when facing lawsuits but also enhances reputation and affirms the position of Vietnamese goods in the international market.
According to Lawyer Nguyen Thanh Ha, many countries are currently increasing the trend of trade protection under the name of trade defense to protect domestic production. Many applied measures tend to be strict and lack objectivity, making it difficult for Vietnamese businesses to protect their legitimate rights.
"In the context of globalization but increasing technical and legal barriers, good legal preparation, improving understanding and proactively responding to trade defense are mandatory if we want to maintain and expand export markets" - Mr. Ha emphasized.

Source: Vitic/ congthuong.vn