Vietnam: Conditions for determination of domestic industry

On January 15, 2018, the Government of Vietnam issued Decree No. 10/2018/ND-CP on guidelines for the law on foreign trade management on trade remedies, which specifies conditions for determination of domestic industry.

Specifically, according to Article 4 of Decree No. 10/2018/ND-CP of Vietnam’s Government, the determination of domestic industry shall comply with the regulations specified in Clause 1 Article 69 of the Law on Foreign Trade Management of Vietnam.

Volume and quantity of produced goods which amount to at least 50% of the total quantity and volume of similar goods or directly competitive products that are produced domestically shall be treated as constituting a major proportion of total domestic production of the domestic industry in accordance with Clause 1 Article 69 of the Law on Foreign Trade Management of Vietnam.

The investigating authority may consider a lower proportion if there is evidence that such proportion is enough to constitute a major proportion of total domestic production of the domestic industry.

In cases include anti-dumping measure and countervailing measure, producers in a specific geographic market within the Vietnam territory may be treated as a domestic industry is the following conditions are satisfied:

- The producers in such geographic market sell all or almost all goods they can produce in the market;

- The needs of such geographic market are not satisfied considerably by producers of similar domestic goods in other geographic market.

In this case, the investigating authority can still determine the damage even when similar domestic producers in other geographic markets do not suffer damage if the investigating authority decides that there are dumping or countervailing activities that only happened in such geographic market and they cause damage to all or almost all producers in such market.

View more: Decree No. 10/2018/ND-CP of Vietnam’s Government takes effect from January 15, 2018.

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