Graduation thesis

EU ANTI - DUMPING LAWSUIT AGAINST VIETNAM - WHAT CAN BE LEARNT FROM THE FOOTWEAR CASE?

ACKNOWLEGEMENTS

              First and foremost, I would like to express my special thanks to my supervisor, Phan Thi Hien Giang, MSCs., for her professional and inspirational suggestions, corrections and advice in bringing this thesis to completion.

              I am also grateful to HanoiForeignTradeUniversity, especially those teachers at the English Faculty, for giving me the opportunity to study in such an academically stimulating program in Bachelor of Business English. The course has provided me with comprehensive knowledge and useful skills in business and foreign trade so that I am able to fulfill this thesis and have the courage to embark on the challenging journey of life - long learning.

              My sincere thanks are due to the World Bank Library and National Library, the librarians, staff and the administrative office of the HanoiForeignTradeUniversity for providing me the valuable materials and assistance.

              I am deeply indebted to my close friends, my relatives and my boyfriend who have always supported and encouraged me to finish the thesis.

              Last but of course not least, I would like to share this moment of happiness and sense of achievement with my parents and my brother, who have always stood by my side and rendered me enormous support and unfaltering love during the whole process of my study.

ACKNOWLEGEMENTS              1

Background to the study              3

Objective of the study              4

Research questions              4

Structure of the thesis              4

Scope of the study              5

Research methodology              5

Chapter 1              5

LITERATURE REVIEW              5

1.1. Dumping in international trade              5

1.1.1. Definition              5

1.1.2. Impacts on importing countries and international trade              6

1. 1. 2. 1. Impacts on importing countries              6

1.1.2.2. Impacts on international trade              7

1.2. Anti - dumping law              8

1.2.1. WTO' s anti - dumping law              8

1.2.1.1. Determination of dumping              9

1.2.1.2. Anti - dumping measures              12

1.2.2. EU' s anti - dumping law              15

1.2.2.1. Determination of dumping              15

1.3. Comparison between WTO and EU anti - dumping laws              21

Chapter 2              23

THE FOOTWEAR CASE              23

2.1. Overview of the Vietnam footwear industry              23

2.1.1. The importance of Vietnam’s footwear industry              23

2.1.2. Footwear exports to the European Union              29

2.2. Overview of the EC' s anti - dumping petition              30

2.3. The petitioner' s arguments              31

2.3.1. Market economy treatment              32

2. 3.1.1. Business decisions              33

2. 3. 1. 2. Accounting              34

2. 3. 1.3. Assets and ' carry over'              35

2. 3. 1.4 Legal environment and currency exchange              36

2.3.2. Individual treatment              36

2.3.3. Vietnam' s selling under the normal value              36

2. 3. 4. Injury              38

2. 3. 4. 1. Macro - economic indicators              39

2. 3. 4. 2. Micro - economic indicators              40

2.4. The subject country' s arguments              42

2.4.1. Market - economy treatment              43

2.4.2. Level of ‘injury’ to EU producers              44

2.4.3. Inappropriate choice of surrogate country              48

2.4.4. Effects on interest of the Community              49

2.5. Summary              50

On the 4th of October, 2006, the EC made their final decision on leather footwear anti - dumping case against Vietnam. An official anti - dumping duty of 10% has been imposed on uppers leather footwear from Vietnam in the period of 2 years.Chapter 3              52

RECOMMENDATIONS AND LESSONS LEARNT              52

3.1. Conclusions and recommendations              52

3.1.1. Diversify the markets outside the EU              54

3.1.2. Diversify the product range              56

3.1.3. Enhance model of business transfer              57

3.1.4. Improve competitiveness              58

3.2. Lessons learnts              59

3.2.1. Fully understanding on international trade law concerning dumping issue              59

3.2.2. Strengthen market economy in Vietnam              60

3.2.3. Domestic enterprises must be well - prepared              62

3.2.4. Create good public relation              62

CONCLUSION              63

BIBLIOGRAPHY              64

Le Thanh Hai - A4 - BBE - K41                            65