Avoidance of trade defense investigation needed
The Ministry of Industry and Trade advises Vietnamese exporters to strictly comply with regulations on origin certifications - photo: VLIC |
The EU-Vietnam Free Trade Agreement (EVFTA) has significantly benefited Vietnamese goods exports to the EU, including electric bicycles. However, Vietnam’s increasing export of electric bicycles to the EU might cause the country to take risk of facing trade defense investigations. The list of products at risk of investigation under trade defense measures, including origin fraud and illegal transshipment (updated as of June 2023) by the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam, includes electric bicycles (HS code 8711.60).
According to the Ministry of Industry and Trade, by including this product in the warning list, Vietnam's relevant authorities have strengthened inspection, supervision, and prevention of inaccurate origin declarations by enterprises regarding electric bicycles. In 2019, the ministry issued warnings regarding the rapid increase in the export volume of electric bicycles from Vietnam to the EU, coinciding with the European Commission's (EC) investigation into anti-dumping and countervailing measures against imported products from China. This investigation could potentially lead to the EC initiating investigations to avoid duties on certain Vietnamese export enterprises, causing a ripple effect on legitimate exporting businesses.
At the same time, the ministry has proactively worked with stakeholders, such as the Vietnam Chamber of Commerce and Industry (VCCI) to enhance inspections and monitoring of the issuance of Vietnamese origin certifications for electric bicycles. Specifically, attention has been given to the possibility of counterfeit Vietnamese origin and coordination with the General Department of Vietnam Customs to organize monitoring and capture any abnormal fluctuations in export activities to certain markets to strictly inspect, verify and handle cases of fraudulent Vietnamese origin in order to avoid trade defense measures, which could undermine Vietnam's overall reputation and the interests of legitimate businesses.
The Ministry of Industry and Trade recommends that Vietnamese exporters strictly comply with regulations regarding origin certifications, refraining from assisting fraudulent origin practices. Furthermore, close market monitoring and timely provision of information to the authorities should be coordinated when any suspicious signs are detected. This is to prevent Vietnam's manufacturing and exporting sectors from being affected by anti-avoidance measures and trade defense investigations in certain import markets.
Moreover, based on the practical application of trade defense measures on imported electric bicycles in the EU in recent years, businesses are advised to pay attention to certain indicative criteria that the EC will closely monitor regarding the trends in the EU electric bicycle market to adjust trade defense measures accordingly. Specifically, a situation in which EU electric bicycle sales decrease while the total market volume remains unchanged, and prices continue to decrease significantly while production costs do not decrease proportionately indicates that EU electric bicycle manufacturers may be facing unfair competition from cheap imports.
Vietnamese businesses need to exercise caution if there are manufacturers/exporters in other countries who engage in transshipment, using Vietnamese origin to enjoy preferential tariff rates when exporting to the EU. They should proactively maintain and improve their business management systems, accounting records and documentation to ensure compliance with information requirements when necessary. |
See also
Việt Nam spends nearly $1b importing cars in the first four months of 2024
06:00 | 18/05/2024 Foreign trade
Aquatic product exports enjoy 6% growth in four months
07:00 | 16/05/2024 Major exports
Vietnamese products to the EU could face suspension due to safety violations
06:00 | 13/05/2024 Foreign trade
Việt Nam coffee exports to Singapore scant, room to grow enormous
08:00 | 12/05/2024 Major exports
US initiates first sunset review of laminated woven sacks imported from Việt Nam
06:00 | 12/05/2024 Foreign trade
Vietnam's durian exports to China boom in Q1
06:00 | 11/05/2024 Major exports
See more news
Timber and wood product exports grow
09:06 | 08/05/2024 Major exports
Firms get updates on EU regulations on imported agricultural products, foods
06:10 | 08/05/2024 Foreign trade
Food safety key for exports to Northern Europe
06:00 | 08/05/2024 Foreign trade
Vietnam leads in export rice prices globally
14:16 | 06/05/2024 Major exports
Vietnam targets 2 billion USD in cassava export by 2030
06:00 | 06/05/2024 Major exports
Vietnamese pomelo to be exported to Australia
08:52 | 04/05/2024 Major exports
Trade surplus hits $8.4 billion in four months: GSO
10:07 | 01/05/2024 Foreign trade
Vietnam ranks fifth among aquatic product suppliers for Singapore
06:00 | 28/04/2024 Foreign trade
Positive outlook for 2024 exports
06:00 | 26/04/2024 Foreign trade
Việt Nam earns $1.43b from rice exports in Q1
09:26 | 19/04/2024 Major exports
Leaders pay tribute to President Ho Chi Minh to mark his 134th birthday
10:05 | 19/05/2024 News and Events
Hà Nội Metro announces profit from the Cát Linh–Hà Đông metro line
10:00 | 19/05/2024 Economy
Cement makers call for scraping of clinker export tax
09:00 | 19/05/2024 Economy
Tourism sector goes green for sustainable development
08:22 | 19/05/2024 Tourism
Digital transformation in logistics - a key to unlocking sustainable e-commerce and economic development
07:00 | 19/05/2024 Economy
Multimedia
Việt Nam plans to preserve ethnic minorities’ intangible cultures at risk of disappearing
06:00 | 15/05/2024 Lifestyle
The Hải Phòng Red Flamboyant Festival celebrated the city's special UNESCO status
16:49 | 13/05/2024 Lifestyle
HCM City: top spot in Việt Nam for slow travel lovers
09:00 | 13/05/2024 Tourism
The Anam Cam Ranh named among Vietnam’s best family hotels
06:00 | 11/05/2024 Vietnamese Brands
Nguyễn Dynasty Urns in Huế make it to the UNESCO Memory of the World List
07:00 | 11/05/2024 Lifestyle
Tax, land rent payment deadlines to be extended this year
06:00 | 19/05/2024 Policy
Ministry proposes tax filing deadline extension for 2024
06:00 | 17/05/2024 Policy
Viet Nam targets to have 2 million enterprises by 2030
07:00 | 15/05/2024 Policy
Law on Telecommunications hoped to promote development of new telecoms services
06:00 | 13/05/2024 Policy
Energy giants plan for national power plan
06:00 | 18/05/2024 Energy
Vietnam charts vision for sustainable, modern fisheries
06:00 | 16/05/2024 Industry
Vietnam should seize opportunity to join global semiconductor supply chain
08:00 | 15/05/2024 Industry
Việt Nam's wood industry strives to match sustainable wood demands
07:00 | 14/05/2024 Industry
Delegation from EU, Netherlands explore investment opportunities in Thai Nguyen
07:10 | 18/05/2024 FDI
Desk established in Dong Nai to support Japanese investors
09:02 | 16/05/2024 Investment
Vietnam should not miss opportunities to attract FDI
08:00 | 14/05/2024 FDI
New wave of Chinese investment
06:00 | 12/05/2024 FDI
Banks raise interest rates to attract depositors
16:47 | 17/05/2024 Finance-Banking
Credit access obstacles lifted for collective economic entities
06:00 | 16/05/2024 Finance-Banking
Government urged to narrow domestic, global gold price gap
08:36 | 15/05/2024 Finance-Banking
Biometric verification ensures safer money transfers
17:23 | 13/05/2024 Finance-Banking
First provincial biodiversity museum launched in Quảng Nam
06:00 | 19/05/2024 Environment
Enhancing informal sector’s role in EPR implementation
06:00 | 18/05/2024 Environment
Centre opened to serve environmental data integration, monitoring network operation
06:00 | 16/05/2024 Environment
Capacity building for policy makers, large emitters on ETS and carbon market
08:48 | 15/05/2024 Environment
Semiconductor investment prioritized
06:29 | 17/05/2024 Science - Technology
Full cyber stream ahead Bắc Giang focuses on digital society development
06:00 | 11/05/2024 Science - Technology
35 localities piloting four-wheel EVs for tourists, despite no official legal regulations
07:00 | 09/05/2024 Science - Technology
2024 VinFuture Prize records 1,469 nominations
06:00 | 07/05/2024 Science - Technology
HCM City to complete 183km of metro routes by 2035
06:00 | 17/05/2024 Society
Railway sector gets creative to attract passengers
07:00 | 15/05/2024 Society
Việt Nam’s largest high-speed ship service from HCM City to Côn Đảo launched
07:00 | 14/05/2024 Society
Central Highlands to become renewable energy hub
08:58 | 13/05/2024 Society
Vietnamese agricultural products to take part in Foodservice Australia 2024
15:08 | 17/05/2024 Vietnamese Brands
PV GAS launches Month of Workers
10:22 | 16/05/2024 Companies
National Brand Program promotes prestigious Vietnam
13:09 | 15/05/2024 Vietnamese Brands
Largest made-in-Vietnam bulk carrier launched
17:07 | 13/05/2024 Vietnamese Brands
Việt Nam plans to preserve ethnic minorities’ intangible cultures at risk of disappearing
06:00 | 15/05/2024 Lifestyle
The Hải Phòng Red Flamboyant Festival celebrated the city's special UNESCO status
16:49 | 13/05/2024 Lifestyle
Nguyễn Dynasty Urns in Huế make it to the UNESCO Memory of the World List
07:00 | 11/05/2024 Lifestyle
European Literary Days focuses on gender
06:00 | 09/05/2024 Lifestyle
Tourism sector goes green for sustainable development
08:22 | 19/05/2024 Tourism
Vietnamese tourism information centre opened in India
08:00 | 18/05/2024 Tourism
Mysterious 'floating' lake discovered in Quảng Bình
16:54 | 13/05/2024 Tourism
HCM City: top spot in Việt Nam for slow travel lovers
09:00 | 13/05/2024 Tourism