REPLIES TO QUESTIONS[1] POSED BY CHINA REGARDING

The following communication, dated and received on 21 October 2025, is being circulated at the request of the delegation of Viet Nam.

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Question 1

Article 48 of Decree No. 86/2025/ND-CP stipulates that "(t)he implementation of the anti dumping/anti subsidy commitment shall be considered as a violation in the following cases: … 7. Other cases." Please clarify which situations "Other cases" refers to.

Reply:

1. The provision "other cases" in Article 48 is constructed in full accordance with WTO principles, especially Article 8.6 of the Anti-Dumping Agreement (ADA) and Article 18.3 of the Agreement on Subsidies and Countervailing Measures (SCM).

2. The purpose is to cover unforeseen situations, ensure the comprehensiveness and effectiveness of the legal system, and avoid taking advantage of legal gaps to avoid obligations.

This clause aims to cover violations of commitments that, although not specifically listed in Clauses 1 to 6, still invalidate the validity, integrity, or objectives of the commitments.

3. Many WTO Members also have similar provisions in their laws. Thus, Viet Nam's regulations are in accordance with international practice.

Question 2

Article 82 of Decree No. 86/2025/ND-CP stipulates that "1. Goods specified in clause 1 Article 81 of this Decree will be considered involved in evasion of trade remedies through production/assembly in Vietnam when the following conditions are satisfied:……c) Value of raw materials, components or materials originating from countries subject to initial trade remedies account for at least 60% of total value of raw materials, materials or components used for production or assembly of goods similar to those subject to initial trade remedies in Vietnam;……2. Inconsiderable added value of domestically produced/assembled goods similar to those subject to initial trade remedies in accordance with regulations in point d clause 1 of this Article shall be based on the following factors: a) Percentage of added value of domestically produced/assembled goods, accounting for less than 25% of total cost for production of similar goods; ……". Please explain what are the basis, reasons, and rationality for using 60% and 25% as thresholds.

Reply:

1. The two thresholds of 60% and 25% are used in accordance with the principles of "substantial transformation" and "value-added test" recognized in the WTO system and free trade agreements (FTAs). The application of these rates is not contrary to WTO regulations, but on the contrary, helps to objectively determine the level of actual production in Viet Nam.

2. The objective of the regulation is to provide clear quantification to prevent circumvention through simple assembly or rough processing, while ensuring that only activities with real added value are considered domestic production. This contributes to protecting the effectiveness of trade defense measures and creating a healthy competitive environment.

Question 3

Article 96 of Decree No. 86/2025/ND-CP stipulates that "1. After decisions on application of measures against evasion of trade remedies are issued, on a 6-month basis during the duration of application of measures, producers/exporters whose goods are not subject to measures against evasion of trade remedies according to decisions issued by the Minister of Industry and Trade shall notify the investigating authority of output, value, domestic sales, value and quantity of exports to Vietnam." Please explain the rationality and purpose of this regulation, and why producers/exporters whose goods are NOT subject to measures against evasion shall also bear the obligation of notification.

Reply:

1. The provision requiring manufacturers and exporters whose goods are not subject to anti-circumvention measures to also perform the notification obligation is reasonable and necessary, because:

- International investigation practice shows that, after anti-circumvention measures are issued, enterprises can change their raw material sources, production lines or ownership structures to redirect trade. If notification is only required for enterprises "subject to measures", the management agency will not have a basis to monitor the entire supply chain and will easily miss circumvention acts.

- In many cases, enterprises that were not initially subject to measures later participate in the production, assembly or processing of part of the goods from the country/territory where the measures are being applied, leading to the risk of forming a new form of evasion.

- Expanding the notification obligation to all relevant manufacturers and exporters helps the investigating agency build a comprehensive and objective database to serve the monitoring, review, and periodic assessment of the effectiveness of anti-circumvention measures.

2. Regarding the purpose of the regulation:

The notification obligation stipulated in Article 96 of Decree No. 86/2025/ND-CP is set out to ensure transparency and effective monitoring during the implementation of anti-circumvention measures; create a legal basis for the investigating agency to grasp the production and export situation, and changes in product or business structure after the measure is applied; prevent new evasion behaviors from arising, especially in cases where goods have changed their form, HS code, or businesses change their transaction direction to avoid the measure.

Thus, the notification obligation not only serves the purpose of post-audit and risk management, but also ensures the continuity, effectiveness and transparency of trade defense measures after they are applied.

3. Regarding international experience: Many WTO Members apply similar mechanisms.

Question 4

Article 104 of Decree No. 86/2025/ND-CP stipulates that "3. The Ministry of Finance shall allocate budget for assistance for traders in accordance with Article 76 of the Law on Foreign Trade Management. 4.The assistance for Vietnamese traders specified in this Article shall comply with Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a signatory." Please explain (1) what types of assistance are mainly included in the assistance provided for trade, and (2) whether such assistance could constitute prohibited subsidies since it seems only exporting traders may be assisted according to Article 104.

Reply:

1. Regarding the content and scope of support in Article 104:

Article 104 of Decree No. 86/2025/ND-CP stipulates forms of support for enterprises, agencies, organizations and individuals in the process of investigating, applying and implementing trade defense measures, especially for small and medium-sized enterprises, to improve their capacity to participate in cases; support international coordination and information exchange with foreign agencies and organizations within the framework of trade cooperation, ensuring the implementation of Viet Nam's international obligations...

Thus, the above forms of support are not financial support, do not require enterprises to export a certain quantity or value and are not "separate".

Clause 4 of Article 104 also clearly stipulates: "Activities to support Vietnamese traders as prescribed in this Article must comply with the provisions of Vietnamese law and international treaties to which the Socialist Republic of Viet Nam is a member".

2. The supports in Article 104 are not "subsidies" as defined in the Agreement on Subsidies and Countervailing Measures (WTO SCM Agreement), because:

- There is no element of "financial contribution" by the State or public authority to enterprises to bring specific benefits;

- There is no objective of promoting exports or prioritizing the use of domestic goods – two criteria for determining prohibited subsidies under Article 3 of the SCM Agreement.

- The support activities are only aimed at enhancing the capacity to comply with the law and defend trade, similar to the capacity-building programs that the WTO and many international organizations encourage.

Therefore, these forms of support fall within the scope of general state management and technical assistance activities, and do not constitute "prohibited subsidies" or "actionable subsidies" under international regulations.

3. Some countries have "Trade Remedies Assistance Office" programs, Trade Defense Support Funds, and training and consulting sponsorship programs for exporting enterprises. This regulation of Viet Nam is not different from the regulations of many WTO member countries.

Question 5

If the trade remedy measures adopted by Viet Nam are ruled inconsistent with the WTO rules, will Viet Nam rectify them in accordance with Decree No. 86/2025/ND-CP, or will it do so based on other laws?

Reply:

The provisions of Decree No. 86/2025/ND-CP are completely consistent with WTO regulations.

Question 6

Article 12 of Circular No. 26/2025/TT BCT stipulates that "1. The Minister of Industry and Trade shall consider granting exclusions from trade remedies in some specific circumstances following the rule that such granted exclusions will not cause any reduction in overall effectiveness of trade remedies. 2. Grant of exclusion from trade remedies on certain imports subject to trade remedies shall be considered in the following circumstances: …" Please clarify whether the above-mentioned exclusion procedure is initiated after the final trade remedy measures are implemented, and, when conducting the domestic industry injury analysis, whether it covers the injury caused by the import of excluded products.

Reply:

1. Article 12 of Circular No. 26/2025/TT-BCT stipulates the Procedure for exemption from trade defense measures, in accordance with Article 9 of the Anti-Dumping Agreement (ADA), according to which Members may apply measures at the necessary level and adjust the scope of application to ensure reasonableness and proportionality.

The procedure is carried out after the trade defense measures have taken effect, because only when the goods have been subject to measures, organizations and individuals have the right to submit applications for exemption.

Clause 4, Article 12 stipulates: "The Ministry of Industry and Trade shall consider and decide on exemption from trade defense measures for each specific case." Thus, when analyzing the damage, the amount of exempted goods will be considered separately in each specific case.

2. The objective of the mechanism is to create a legal mechanism so that special cases that do not cause significant damage to the domestic industry can still be imported and exported normally, avoiding excessive impact from safeguard measures.

3. International experience shows that some WTO Members allow exemptions.

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