HANOI – Vietnam's exporters are being tested by Turkey's evolving trade landscape, as Ankara increasingly deploys trade defense measures, prompting businesses to enhance their preparedness to mitigate potential damages. While these protectionist shifts present clear risks, Turkey remains a highly attractive market, creating a complex paradox for Vietnamese companies looking to expand their global footprint.
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| According to the Trade Remedies Authority (TRA) under the Ministry of Industry and Trade, Turkey has applied 26 trade defence measures involving Vietnamese exports to date. — VNA/VNS Photo |
Vietnam's government, through its Trade Remedies Authority (TRA), is now urging the nation's businesses to move from a reactive to a proactive stance to successfully navigate this challenging yet promising environment.
A Rising Tide of Trade Barriers
Turkey has become more assertive in protecting its domestic industries. This month, Ankara imposed anti-dumping duties on thick steel imported from South Korea following a year-long investigation. While not directly targeting Vietnam, this move signals Turkey's proactive approach to market management.
More directly, Turkey recently applied safeguard measures to imported ethyl acetate, including shipments from Vietnam, due to what it deemed a significant volume of trade.
According to the TRA, under Vietnam's Ministry of Industry and Trade, Turkey has now applied a total of 26 trade defense measures related to Vietnamese exports. These are not standard tariffs; they are legally permissible but can be far more severe, often involving high duty rates, long durations, and flexible adjustments. The TRA noted that while frequent investigations are not unusual in global trade, the trend underscores a critical need for exporters to be well-prepared.
An Attractive Market with Hidden Hurdles
Despite these risks, the allure of the Turkish market is undeniable. With a large population of nearly 84 million, a dynamic economy, and a pivotal strategic location bridging the Middle East and the European Union, Turkey represents a significant opportunity.
Vietnam's key export sectors, including rice, dairy products, pepper, timber, rubber, tea, textiles, footwear, and electronics, all have strong potential for growth in the Turkish market. This potential is what makes navigating the new trade hurdles a crucial priority for Vietnamese industry leaders.
From Reaction to Proaction: A Strategic Guide for Businesses
To confront these challenges, the TRA has outlined a comprehensive strategy for Vietnamese enterprises, shifting the focus from simply reacting to investigations to building a resilient and proactive export model.
The key recommendations include:
Enhanced Monitoring and Legal Awareness: Businesses are advised to closely monitor early warning systems for potential investigations, actively share information with industry associations, and thoroughly research Turkey's local laws and trade defense practices.
Shifting from Price to Quality: Rather than competing solely on price—a strategy that can attract dumping allegations—companies should focus on enhancing product quality. The TRA also recommends using domestic or unrestricted raw materials to increase the value-added of Vietnamese products, which can also mitigate the risk of certain investigations.
Strategic Planning and Risk Assessment: Enterprises should develop phased export strategies and establish direct lines of communication with their Turkish importers. Before any contract is signed, a thorough assessment of potential risks should be conducted, with unified response plans in place.
Resource Allocation and Cooperation: When facing an investigation, exporters should be prepared to allocate sufficient resources, consider hiring expert legal counsel, and work in close coordination with both industry associations and government agencies like the TRA.
According to the TRA, these proactive steps can help businesses minimize losses, protect their legal rights, and maintain a stable and profitable presence in the Turkish market, turning potential challenges into opportunities for sustainable growth.
