ACKNOWLEGEMENTS 1

INTRODUCTION 4

Background to the study 4

Objective of the study 4

Research questions 5

Structure of the thesis 5

Scope of the study 5

Research methodology 5

Chapter 1

LITERATURE REVIEW 7

1.1. Dumping in international trade 7

1.1.1. Definition 7

1.1.2. Impacts on importing countries and international trade 8

1.1.2.1. Impacts on importing countries 8

1.1.2.2. Impacts on international trade 8

1.2. Anti-dumping law 9

1.2.1. WTO's anti-dumping law 9

1.2.1.1. Determination of dumping 10

1.2.1.2. Anti-dumping measures 14

1.2.2. EU's anti-dumping law 16

1.2.2.1. Determination of dumping 17

1.3. Comparison between WTO and EU anti-dumping laws 22

Chapter 2

THE FOOTWEAR CASE 25

2.1. Overview of the Vietnam footwear industry 25

2.1.1. The importance of Vietnam’s footwear industry 25

2.1.2. Footwear exports to the European Union 30

2.2. Overview of the EC's anti-dumping petition 31

2.3. The petitioner's arguments 32

2.3.1. Market economy treatment 33

2.3.1.1. Business decisions 34

2.3.1.2. Accounting 35

2.3.1.3. Assets and 'carry over' 36

2.3.1.4 Legal environment and currency exchange 37

2.3.2. Individual treatment 37

2.3.3. Vietnam's selling under the normal value 37

2.3.4. Injury 39

2.3.4.1. Macro-economic indicators 40

2.3.4.2. Micro-economic indicators 41

2.4. The subject country's arguments 43

2.4.1. Market-economy treatment 44

2.4.2. Level of ‘injury’ to EU producers 45

2.4.3. Inappropriate choice of surrogate country 49

2.4.4. Effects on interest of the Community 50

2.5. Summary 51

Chapter 3

RECOMMENDATIONS AND LESSONS LEARNT 54

3.1. Conclusions and recommendations 54

3.1.1. Diversify the markets outside the EU 56

3.1.2. Diversify the product range 58

3.1.3. Enhance model of business transfer 58

3.1.4. Improve competitiveness 59

3.2. Lessons learnts 60

3.2.1. Fully understanding on international trade law concerning dumping issue 60

3.2.2. Strengthen market economy in Vietnam 62

3.2.3. Domestic enterprises must be well-prepared 63

3.2.4. Create good public relation 64

CONCLUSION

BIBLIOGRAPHY 67