EU retailers back local bike firms in dumping spat

“If the EU were to introduce anti-dumping measures for Vietnamese bicycle imports, it could well result in a sudden decline of Vietnamese imports into the EU as well as a restriction of competition,” the European Association of Two-wheel Retailers said in a petition sent to the European Commission on July 21.
The association warned that in those countries that import branded and private label bikes from Vietnam, such a decline could not be compensated at short notice.
“Importers cannot move from one subcontractor to another just like that. Dealers cannot switch from one brand to another very easily,” the association said.
It concluded that as a result, a number of jobs in the independent bicycles dealers sector would be in the balance. Moreover, in their petition paper, the association argued in detail how European manufacturers’ representatives had failed to establish conclusive proof of dumping and injury.
Nine bicycle manufacturers operating in Vietnam have been asked to submit information about their business to the European Commission in response to dumping accusations by EU manufacturers.
Six of the companies charged are wholly Taiwanese owned A&J High Ride Bicycle and Asama Juh Jiun Vietnam from Binh Duong province in the south, Dragon Bicycle Vietnam, Liang Industrial and Strongman in the southern province of Dong Nai and the Vietnam Sheng Fa International, which is based in Ho Chi Minh City.
The last three are domestic companies: the Le Ngoc Han bicycle company, which has been merged into Haprosimex company, and the Thong Nhat and Xuan Hoa bicycle companies.
Charges have also been filed against Chinese manufacturers.
Vietnamese companies have told the commission there is no basis for the charges and asked that they be dismissed.
“The conduct of anti-dumping proceedings by the EC against nine enterprises in operation in Vietnam will affect export turnover of made-in-Vietnam bicycles,” said Dinh Thi My Loan, director general of the Competition Administration Department of the trade ministry.
“There are some illogical points in the lawsuit. For instance, three out of the nine enterprises named in the suit, Le Ngoc Han, Thong Nhat, Xuan Hoa, have not exported any products to the European Union market for several years.”
Trinh Nguyet Minh, deputy director of the Thong Nhat bicycle and motorbike company, said she was amazed at the charges.
“In the last few years, our company has not been able to export products to the EU as some EU importers charged a higher price for our bikes than the Chinese bike.”
Minh said the decision would not affect her operation but in the long run, it was difficult to know the consequence on the local bike industry, which was oriented towards export.
“Thong Nhat company is intending to export its products abroad and the suit could affect the company’s image in the future.”