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Enterprises do not cooperate, Vietnamese plywood is at risk of being imposed anti-dumping tax by the US,august,2022

Vietnamese businesses are bewildered by the US anti-dumping tax on plywood – Photo: H. QUAN

On August 22, the Vietnam Timber and Forest Products Association (VIFOREST) ​​said that the US Department of Commerce (DOC) has just issued a preliminary ruling on the results of an investigation into plywood made from hardwood plywood for export. from Vietnam to the US being sued for having Chinese origin (manufactured or semi-finished products in China, finished in Vietnam and exported to the US to avoid anti-dumping and anti-subsidy taxes). grant).

According to VIFOREST, a number of Vietnamese enterprises specializing in processing and exporting plywood manufactured from hardwood were listed as “not responding” or “not cooperating” by the DOC because they did not open an account on the website of VIFOREST. DOC to answer questionnaires, answer incomplete information as requested by DOC, inconsistent information…

Recently, a number of businesses have hired foreign lawyers as services to receive information from the DOC, review and declare. However, due to insufficient awareness, many questions were not transferred to the enterprise by the lawyer, and the evidence about the factory, raw material supply and production reality was not provided sufficiently and systematically.

The DOC has preliminarily concluded that there are 21 companies that cooperate well, 22 companies that are “unresponsive” and 14 companies that are “non-cooperative”. The Vietnam Timber and Forest Product Association is working with 36 businesses in the following two groups to make brief explanations to the DOC and register to participate in public hearings to confirm that the enterprises are really “innocent”, not evading. tax.

Exchange with Youth Online On August 22, Mr. Ngo Sy Hoai – Vice President and General Secretary of VIFOREST, said that being listed by DOC as “not responding” or “not cooperating” made Vietnamese plywood enterprises very worried. , confused.

As expected, in mid-October 2022, the DOC will issue the final judgment on the investigation of trade remedy evasion with respect to plywood made from hardwood materials imported from Vietnam.

If the unfavorable judgment for Vietnamese enterprises is passed, many businesses will lose their product consumption markets due to the application of anti-dumping and anti-subsidy taxes as applied to plywood imported from China. There are even businesses facing the risk of bankruptcy.

“Currently businesses listed as ‘nonresponsive’, or ‘noncooperative’ have submitted written explanations summarizing the DOC’s preliminary comments and have signed up to attend the public hearing.

The Vietnam Timber and Forest Products Association hopes that the DOC will thoroughly consider the counterarguments from the Vietnamese side’s stakeholders and make a fair and transparent final decision,” emphasized Mr. Ngo Sy Hoai.

VIFOREST leaders also suggested that the Trade Remedies Department under the Ministry of Industry and Trade and relevant agencies of Vietnam strengthen exchanges with US partners so that law-abiding businesses can have a normal business environment. .

“VIFOREST and Vietnamese plywood enterprises are also ready to welcome US DOC delegations to Vietnam to inspect on the spot the production and business activities of wood industry enterprises. In addition, VIFOREST and wood enterprises are also ready to welcome the delegations of the US DOC to Vietnam. Viet also proposed to strictly handle cases of commercial fraud and tax evasion, if any, “- Mr. Hoai said.

Previously, in 2020, the DOC initiated an investigation to avoid trade remedies for plywood using hardwood materials imported from Vietnam.

Regarding 40 enterprises of kitchen cabinets and bathroom cabinets (wooden cabinets – PV) whose explanation was rejected by the DOC, Mr. Hoai said that these 40 businesses were involved in the case that DOC initiated an investigation and review of wooden cabinets imported from Vietnam since May 2022. Not related to plywood investigation case.

According to Mr. Hoai, the DOC has investigated a number of businesses and businesses have sent back explanations. Recently, the DOC has refused due to some explanations of businesses because it was submitted on time or due to wrong technical manipulation. DOC requires businesses to actively remove/delete documents submitted on the system.

According to the announcement of the DOC, out of 40 businesses that have been denied an explanation, there are many large Vietnamese wood exporters such as Cam Ha Joint Stock Company, Thuan An Wood Processing Joint Stock Company, Saigon River Factory. , Tan Phuoc Company Limited, Minh Phat 2 Company Limited (Mifaco), Giang Minh Company Limited…

According to the General Department of Forestry, in the first 7 months of the year, Vietnam’s largest wood export market, the US, decreased again, reaching only US$ 5.84 billion, down 4.9% over the same period last year.

In addition to inflation, the cause of the decline in wood export turnover to the US is that the DOC has initiated an investigation to consider wooden cabinets imported from Vietnam.

In a recent survey of 52 wood industry enterprises conducted by wood associations and research groups in collaboration with Forest Trends, out of 45 enterprises currently exporting to the US, there are 33 enterprises. announced that current sales are down nearly 40% compared to the first months of the year. Only 10 businesses said revenue increased compared to the previous months, but the increase was very small (11%).

Currently, the US is Vietnam’s largest furniture import market (accounting for about 65% of the total export value of wood and forest products). In 2021, the US imports about 9 billion USD of wood and furniture products from Vietnam. In which, plywood from Vietnam alone reached about 522 million USD.

Exports of wood and forest products decelerate due to inflation in the US and Europe


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