The government has issued a new decree guiding the implementation of provisions under the Law on Foreign Trade Management regarding trade defense measures.

The decree mandates the development of retaliation strategies when Vietnamese businesses are subjected to foreign trade safeguard actions.

Decree No. 86 outlines specific regulations related to assessing domestic industry damage, preventing the circumvention of trade defense measures, procedures and timelines for launching or ending trade defense investigations, applying and reviewing trade defense measures, identifying subsidies and applying countervailing measures, and assigning responsibility for coordination among relevant agencies during investigations. It also addresses how to handle trade defense measures imposed on Vietnam’s exports.

The government has explicitly directed the formulation of legal action plans, including the right to sue, claim compensation, and impose retaliatory measures when foreign countries apply trade safeguards against Vietnamese businesses.

In such cases, affected Vietnamese businesses can submit written requests to the Ministry of Industry and Trade, along with letters of support from related associations or industry groups.

The Ministry of Industry and Trade is responsible for working with other ministries to report potential lawsuit strategies to the Prime Minister. Meanwhile, the Ministry of Finance will ensure adequate budget allocation to support affected businesses.

As part of the support process, the Ministry of Industry and Trade will develop plans to collaborate with foreign investigating authorities, conduct consultations, provide requested information and documentation, and participate in on-site investigations.

If necessary, the ministry may propose a plan to demand compensation from the foreign country, subject to the Prime Minister’s approval, and oversee implementation if an agreement is reached.

Should negotiations fail, the ministry will then lead the preparation of a trade retaliation plan for government approval.

Additionally, the government has tasked the Ministry of Industry and Trade with developing and managing an early warning system to anticipate foreign trade defense lawsuits against Vietnamese exports.

The Vinh