   
  
G/SG/N/8/VNM/3/Suppl.2  
 
20 March 2020  
(20-2244) Page: 1/3 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE  12.1(B) OF THE AGREE MENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY OR TH REAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
VIET NAM 
Certain semi -finished and finished products of allow and non -alloy steel  
Supplement  
 
The following communication, dated 19 March 2020 , is being circulated at the re quest of the 
delegation of Viet Nam. 
 
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Pursuant to Article 12.1(b) of the WTO Agreement on Safeguards, the Ministry of Industry and Trade 
of the Socialist Repub lic of Viet Nam hereinafter referred as "MOIT", hereby notifies that there has 
been a finding of serious injury or threat thereof caused by increased imports of "Certain semi -
finished and finished products of alloy and non -alloy steel" under HS Code  7207.1 1.00; 7207.19.00; 
7207.20.29; 7207.20.99; 7224.90.00; 7213.10.10; 7213.10.90, 7213.91.20; 7214.20.31; 
7214.20.41; 7227.90.00; 7228.30.10; 9811.00.00.  
1  PROVIDE EVIDENCE OF SERIOUS INJURY OR TH REAT THEREOF CAUSED BY INCREASED 
IMPORTS  
- After the application of the initial safeguard measure, the domestic industry's performance had 
improved noticeably during the period of 2017 – 2018, particularly with regards to production, 
market share, employment and productivity. However, production beg an to dec line in the first six 
months of 2019.  
- Sales: domestic and export sales increase d. However, domestic sales of semi -finished products  
tended to decrease since 2018.  
- Profits: After the application of the initial safeguard measure, as for semi -finished products, the 
domestic industry incurred profits but profitability was still low. In the first six months of 2019, there 
were signs of losses. As for finished products,  profitability increased during 2015 -2016. However, it 
started to decrease gradually.  
- Inventory: the ratio of inventory to output reduced in 2016 and 2017 but increased in 2018 and 
reached a record high in the first six months of 2019.  
The indicators hav e demonstrated that the domestic industry has not fully recovered from the injury 
caused by imports. According to the present domestic industry's performance, if the initial safeguard 
measure is not extended, it will be difficult for the domestic industry to compete with imports.  G/SG/N/8/VNM/3/Suppl.2  
 
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  2  ADJUSTMENT OF THE DO MESTIC INDUSTRY  
The domestic industry has conducted adjustment plans aiming at increasing its productivity, product 
quality such as adjustment in production, production line, technology, employment, management 
and marketing.  
3  PROVIDE INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE  IN IMPORTS 
OR AN INCREASE IN IM PORTS RELATIVE TO DO MESTIC PRODUCTION  
Year  2015  2016  2017  2018  6M 2018  6M 2019  
Semi -finished products of alloy and non -alloy steel  
Imports (Ton)  1,606,819  672,469  33,915  30,028  25,050  101,486  
Trend (%)   - 58.1 -95 -11.5 - 305.1  
Ratio of imports to 
domestic 
production(%)  28.5 8.6 0.3 0.3 0.5 2.2 
Finished products of alloy and non -alloy steel  
Imports (Ton)  1,153,461  693,820  201,479  162,824  76,041  82,588  
Trend (%)   - 39.8 -71 -19.2 - 8.6 
The ratio of imports to 
domestic 
production(%)  17.2 8.0 2.2 1.6 1.5 1.8 
The volume of imports under review tended to decrease significantly. However, in the first six months 
of 2019, the amount of imports under review (both semi -finished and finished products) tend ed to 
increase both in relative and absolute terms. The volume of imports of certain semi -finished products 
of alloy and non -alloy steel increased from 25,050 tons in the first 6  months of 2018 to 101,486 
tons in the first six months of 2019. The volume of imports of certain finished products of alloy and 
non-alloy steel increased from 76,041 tons in the first six months of 2018 to 82,588 tons in the first 
6 months of 2019.  
4  PROVID E A PRECISE DESCRIPT ION OF THE PRODUCT I NVOLVED  
Certain semi -finished and finished products of alloy and non -alloy steel under HS Code: 7207.11.00; 
7207.19.00; 7207.20.29; 7207.20.99; 7224.90.00; 7213.10.10; 7213.10.90,  7213.91.20; 
7214.20.31; 7214.20.41; 7227.90.00; 7228.30.10; 9811.00.00 imported into Viet Nam.  
5  IF THE FINAL MEASURE  REPLACES A PROVISIO NAL MEASURE, OR IF A  FINAL MEASURE 
IS EXTENDED, PROVIDE  A WRITTEN DESCRIPTI ON OF ANY PART OF TH E IMPORTED 
PRODUCT THAT WILL NO  LONGER BE SUBJECT T O THE MEASURE AND THE HARM ONIZED 
SYSTEM NUMBERS UNDER  WHICH IT ENTERS AT LEAST AT THE 6 -DIGIT  LEVEL, AND AT A 
SUB-NATIONAL LEVEL ( E.G., 8 -DIGIT, 9 -DIGIT, OR 10 -DIGIT LEVE L) IF PRACTICABLE  
Not applicable  
6  PROVIDE A PRECISE DE SCRIPTION OF PROPOSE D MEASURE  
The MOIT has not yet proposed measure in response to the MOIT's determination of serious injury 
or threat thereof. The MOIT is now considering recommendations as to appropriate measures.  
7  PROVIDE PROPOSED DAT E OF INTRODUCTION OF  THE MEASURE  
See response to item 6 above. 
8  PROVIDE EXPECTED DUR ATION OF THE MEASURE  
See response to item 6 above.  G/SG/N/8/VNM/3/Suppl.2  
 
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  9  FOR A MEASURE WITH A  DURATION OF MORE TH AN THREE YEARS, PROV IDE THE 
PROPOSED DATE FOR TH E REVIEW (UNDER ARTI CLE 7.4) TO BE HELD NOT LATER THAN 
THE MID -TERM OF THE MEASURE, IF SUCH A DATE FOR THE REVIEW HAS ALREADY B EEN 
SCHEDULED  
See response to item 6 above.  
10  IF THE EXPECTED DURA TION IS OVER ONE YEA R, PROVIDE EXPECTED TIMETABLE FOR 
PROGRESSIVE LIBERALI ZATION OF THE MEASUR E 
See response to item 6 above.  
11  IF THE NOTIFICATION RELATE S ONLY TO A FINDING OF SERIOUS INJURY OR  THREAT 
THEREOF, AND DOES NO T RELATE TO A DECISI ON TO APPLY OR EXTEN D A SAFEGUARD 
MEASURE  
i. provide the deadline for interested parties to comment or any other procedures 
relevant to the decision to apply the measures,  and 
ii. provide information regarding procedures for prior consultation with those 
Members having a substantial interest as exporters of the product concerned.  
Information regarding the procedures and relevant deadlines with regard to the investigation is 
contained in the notice of initiation of the extension review.  
On 20 January 2020, the investigating authority has conducted a public hearing with interested 
parties.  
The MOIT is open for consultations to Member having a substantial interest as exporters of t he 
product concerned.  
Further information and comments should be sent to:  
LEGAL AFFAIRS DIVISION  
TRADE REMEDIES AUTHORITY OF VIET NAM – MINISTRY OF INDUSTRY AND TRADE  
Address: 25 Ngo Quyen Street, Hoan Kiem District, Hanoi, Viet Nam  
Phone: (+84 24) 7303.78 98 (ext: 130)  
Fax: (+84 24) 7303.7897  
Email: pvtm@moit.gov.vn  
 
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