VietNamNet Bridge – Vietnamese exporters, who have been hit with anti-dumping lawsuits in the past, are discovering that low prices on their products are hurting them in the US market.

The Competition Administration Department (CAD), an arm of the Ministry of Industry and Trade (MOIT), on May 30 told Mid Continent Steel & Wire Inc had filed a complaint with the US Department of Commerce (DOC), asking that it investigate and impose anti-dumping and countervailing duties against steel nails from seven countries, including Vietnam.

The figures provided by the plaintiff to the DOC showed that the US imported $41.2 million worth of steel nails in 2013, a three-fold increase over 2011. Meanwhile, imports from Vietnam in the first four months of the year reached $9.3 million.

CAD said the US DOC would make a final decision on whether to conduct an investigation into the case within 20 days.

If DOC agrees to conduct the investigation, steel nails will be the fourth Vietnamese product to be involved in dual (anti-dumping and countervailing) lawsuits.

The three others are plastic bags, carbon welded steel pipes and steel hangers. The products are expected to become uncompetitive if heavy anti-dumping duties are imposed.

More Vietnamese products are being subject to anti-dumping lawsuits from US manufacturers. Seafood products, including catfish and shrimp, have been facing anti-dumping tax barriers for many years.

Recently, Vietnamese catfish exporters were informed that the the anti-dumping tax on Vietnamese catfish has been raised to $1.2 per kilo from $0.42 per kilo.

According to CAD, Vietnamese exporters have faced 20 anti-dumping and countervailing lawsuits over the last two years.

The agency has warned exporters that more anti-dumping lawsuits could be filed against Vietnamese enterprises if the latter continue to pursue a low-pricing policy to conquer the US market.

It said that companies must choose non-price measures to get a foothold in the market, rather than low prices.

Non-price measures include such things as product standards, quality, design, and delivery services that can satisfy customers.

Nguyen Huu Tai, chair of the Vietnam Tea Association, noted that Vietnamese exporters have been trying to scramble for export contracts by lowering prices.

“Vietnamese enterprises should compete with their rivals by offering high quality products and strong brands. This should be seen as a long-term, top-priority business strategy,” Tai said.

Thuy Ha, Marketing Director of Traphaco, a pharmaceutical manufacturer, said Traphaco’s advantages were in medicine products made of tropical herbs which cannot be found in the temperate zone, and that the company does not sell products at low prices to be competitive.

Ha said that competing with non-price measures is the best business strategy for Vietnamese to follow in the context of deeper economic integration into the world.

In today’s world of trade liberalization, more non-tariff barriers will be implemented, and Vietnamese businesses cannot use the old pricing policy to compete in the new circumstances, he added.

Dat Viet