Eu anti-dumping lawsuit against vietnam – what can be learnt from the footwear case?



First and foremost, I would like to express my special thanks to my supervisor, Phan Thi Hien Giang, MSCs., for her professional and inspirational suggestions, corrections and advice in bringing this thesis to completion.
I am also grateful to Hanoi Foreign Trade University, especially those teachers at the English Faculty, for giving me the opportunity to study in such an academically stimulating program in Bachelor of Business English. The course has provided me with comprehensive knowledge and useful skills in business and foreign trade so that I am able to fulfill this thesis and have the courage to embark on the challenging journey of life-long learning.
My sincere thanks are due to the World Bank Library and National Library, the librarians, staff and the administrative office of the Hanoi Foreign Trade University for providing me the valuable materials and assistance.
I am deeply indebted to my close friends, my relatives and my boyfriend who have always supported and encouraged me to finish the thesis.
Last but of course not least, I would like to share this moment of happiness and sense of achievement with my parents and my brother, who have always stood by my side and rendered me enormous support and unfaltering love during the whole process of my study.

Background to the study4
Objective of the study4
Research questions5
Structure of the thesis5
Scope of the study5
Research methodology5
Chapter 17
1.1. Dumping in international trade7
1.1.1. Definition7
1.1.2. Impacts on importing countries and international trade8 Impacts on importing countries8 Impacts on international trade8
1.2. Anti-dumping law.. 9
1.2.1. WTO’s anti-dumping law.. 9 Determination of dumping10 Anti-dumping measures14
1.2.2. EU’s anti-dumping law.. 16 Determination of dumping17
1.3. Comparison between WTO and EU anti-dumping laws22
Chapter 225
2.1. Overview of the Vietnam footwear industry25
2.1.1. The importance of Vietnam’s footwear industry25
2.1.2. Footwear exports to the European Union30
2.2. Overview of the EC’s anti-dumping petition31
2.3. The petitioner’s arguments32
2.3.1. Market economy treatment33 Business decisions34 Accounting35 Assets and ‘carry over’36 Legal environment and currency exchange37
2.3.2. Individual treatment37
2.3.3. Vietnam’s selling under the normal value37
2.3.4. Injury39 Macro-economic indicators40 Micro-economic indicators41
2.4. The subject country’s arguments43
2.4.1. Market-economy treatment44
2.4.2. Level of ‘injury’ to EU producers45
2.4.3. Inappropriate choice of surrogate country49
2.4.4. Effects on interest of the Community50
2.5. Summary51
Chapter 354
3.1. Conclusions and recommendations54
3.1.1. Diversify the markets outside the EU.. 56
3.1.2. Diversify the product range58
3.1.3. Enhance model of business transfer58
3.1.4. Improve competitiveness59
3.2. Lessons learnts60
3.2.1. Fully understanding on international trade law concerning dumping issue60
3.2.2. Strengthen market economy in Vietnam.. 62
3.2.3. Domestic enterprises must be well-prepared63
3.2.4. Create good public relation64

Background to the study
In recent years, a great number of bilateral and multilateral trade agreements have been signed between Vietnam and other countries and international organizations, which, among other things, have provided greater access for Vietnamese goods to the global market. However, several kinds of Vietnam exports have been accused of being sold at dumped prices in some foreign markets. In particular, anti-dumping tariff was imposed on Vietnam by the European Union on glutamate in 1998, by Poland on gas lighter in 2000, by Canada on garlic in 2002, by the US on catfish in 2002, shrimp (2003), woodwork (2004) and again by the EU on bicycles in 2004. On July 2005, the European Commission officially lodged yet another dumping lawsuit against Vietnamese footwear products exported to the EU market. Such series of lawsuits has raised massive concern for Vietnamese producers, as it has had a negative impact on international economic integration process of Vietnam, as well as shown that Vietnam has not adequately prepared for a bigger “playing field”.
Active integration inevitably entails proactive study about foreign markets. Nevertheless, international markets in general, and the EU market in particular have different regulations and trading practice that requires deep understanding to defend oneself from implicit risks. Although dumping and anti-dumping suits are not something new to Vietnam as it was several years ago, and Vietnam has been moving on a very steep learning curve, it is still necessary for Vietnamese enterprises to deepen their understanding by further analysis if

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