Issues Related to Competition Laws

Vietnam

B. Trade remedies against unfair trade practices

Safeguard Measures

Regulations and procedures on trade remedies through safeguards are governed by Ordinance 42-2002-PL-UBTVQH10 on Self-Protection in Import of Foreign Goods into Vietnam dated 25 May 2002 and its implementing Decree 150-2003-ND-CP of the Government dated 8 December 2003 Providing Detailed Guidelines for Ordinance 42-2002-PL-UBTVQH10 on Self-Protection in Import of Foreign Goods into Vietnam.

Effective as of 1 September 2002, Ordinance 42 allows Vietnam to take protective measures in order to safeguard its domestic manufacturing industries against serious losses in circumstances where there is a sudden increase in import of goods "beyond the levels", which is defined as "the import of goods in a volume, quantity or at a value which increases in an absolute or relative way in comparison to the volume, quantity or cost of equivalent goods or of directly competitive goods which are manufactured domestically" (article 4.1).

Anti-Dumping Measures

On 29 April 2004, the Standing Committee of Vietnam’s National Assembly ratified Ordinance 20-2004-PL-UBTVQH11 Against Dumping of Imported Goods in Vietnam. Aimed at limiting the adverse impact on domestic Vietnamese manufacturing industries caused by dumping of imported goods in Vietnam, Ordinance 20 prescribes a range of measures which may be applied to prevent dumping and the investigations which must be undertaken to apply such measures. Goods imported into Vietnam will be deemed to be dumped when they are sold at a price lower than the normal market value of such goods in the exporting country.

Anti-Subsidy Measures

On 20 August 2004, the Standing Committee of Vietnam’s National Assembly passed Ordinance 22-2004--PL-UBTVQH11 on Measures Against Subsidized Goods Imported into Vietnam. Ordinance 22 creates a legal framework for application of measures to protect domestic manufacturing industries when importation of subsidized foreign goods into Vietnam causes or threatens to cause substantial loss to a domestic manufacturing industry.