Vietnam imposes anti-dumping duties on Chinese aluminum

Vietnam Implements Anti-Dumping Measures on Extruded Aluminum Imports from China

According to the Ministry of Industry and Trade (MOIT), the agency has issued Decision No. 2942/QĐ-BCT, officially imposing anti-dumping duties on certain extruded aluminum products originating from China. The provisional anti-dumping tax rates applied to Chinese aluminum extrusion exporters range from 2.49% to 35.58%.

Investigation and Findings

Earlier, in January 2019, the MOIT conducted an investigation into 16 Chinese companies and manufacturers in this sector. The results revealed that Vietnam’s domestic aluminum industry had suffered significant losses, with most businesses operating at a loss and many production lines forced to shut down. Additionally, a large number of workers lost their jobs.

According to the MOIT, the primary cause of this situation was China’s dumping practices, with dumping margins ranging from 2.49% to 35.58%. In some cases, the selling price was far below production costs. These dumped products have been restricted by many countries through trade barriers, including anti-dumping measures.

The investigation met the mandatory conditions set by the World Trade Organization (WTO), the Law on Foreign Trade Management, and relevant regulations to justify the application of anti-dumping measures. Consequently, the MOIT issued its official anti-dumping decision to minimize damage to Vietnam’s domestic industry, which was on the brink of losses and bankruptcy.

Rising Imports from China and U.S. Trade Measures

In contrast, aluminum imports from other countries have steadily declined over the years, reaching less than 5,000 tons in 2018. However, China’s extruded aluminum imports into Vietnam surged to 62,000 tons in 2018, nearly doubling from 2017. This figure excludes large amounts of Chinese aluminum imported into Vietnam’s export processing zones for further re-export manufacturing.

Additionally, in 2018, the United States launched an investigation into possible anti-circumvention related to extruded aluminum imports from Vietnam.

A preliminary conclusion released two weeks ago found that Vietnamese extruded aluminum exports to the U.S. were evading anti-dumping and countervailing duties imposed on Chinese products. As a result, the U.S. announced a tariff rate of up to 374.15% on these Vietnamese aluminum products. Notably, some HS codes under the U.S. investigation overlap with those subject to anti-dumping measures under MOIT Decision 2942/QĐ-BCT.

According to the MOIT, the U.S. anti-circumvention tariffs on Vietnamese aluminum products could severely impact legitimate Vietnamese aluminum producers and exporters, who are already struggling against competitive pressure from Chinese imports.

Impact and Implementation of Anti-Dumping Measures

The provisional anti-dumping measures on Chinese extruded aluminum products will help reduce pressure on domestic enterprises and prevent the illegal transshipment of goods through Vietnam.

The official anti-dumping duties took effect on October 4, 2019.

For detailed information on the official anti-dumping measures, please refer to Decision No. 2942/QĐ-BCT and the official announcement from the Ministry of Industry and Trade.