US Department of Commerce to examine Vietnamese wood exporters

Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association, told VIR that on October 16, 2022, a United States Department of Commerce (DoC) investigative committee visited several wood enterprises in Vietnam.

He said the DoC team would separate into two groups and spend 7-10 days doing on-site inspections of 40 enterprises that perform well and 36 businesses that the DoC deems uncooperative. The DoC picked the businesses at random for inspection.

Vietnam's wood furniture exports to the US market are in decline, hitting just $607 million in September 2022, 11 per cent less than in August

According to the Trade Remedies Department of the Ministry of Industry and Trade (MoIT), Vietnam's wood industry faces two DoC anti-trust investigations involving plywood goods and wood cabinets.

In the instance of anti-trust plywood goods constructed from hardwood imported from Vietnam, the US side has reached a preliminary finding, and a final decision is due on October 17.

Thirty-six businesses did not completely participate in the preliminary inquiry and conclusion, presenting conflicting information. The remaining businesses that can produce documentation that they do not utilise Chinese raw materials (representing 80 per cent of the plywood export turnover during the investigation period) will still be approved to export to the US and not be charged an anti-circumvention tax.

In a second instance, in June 2022, the DoC continued to launch an inquiry into the tax evasion of Vietnamese-imported wooden and kitchen cabinets. Forty of the businesses asked to provide opinions did so after the deadline.

The Trade Remedies Authority of Vietnam said that, it had collaborated with wood organisations to encourage enterprises to assist in investigations and provide comprehensive and correct information.

The export of Vietnamese furniture to the US is decreasing. According to the Vietnam Industry and Trade Information Centre, the export turnover of wood and wood products to the US market during September was $607 million, a decrease of 11 per cent compared to August but an increase of 73.4 per cent compared to the same month in 2021.

In the nine months of 2022, the export value of wood and wood products to the US was assessed at $6.9 billion, an increase of 2.4 per cent compared to the previous year.

Vietnam plans out domestic wood pivot To ease the dependence on imported wood and timber products, Vietnam aims to reduce the amount of imported material and instead strengthen the domestic supply – a goal the government aims to reach by applying a traditional carrot and stick approach.

Wooden cabinet exporters advised to review activities related to US’s investigation The Trade Remedies Authority of Vietnam (TRAV) has recommended that wooden cabinet producers and exporters continue to review the export activities of their products subjected to the US Department of Commerce (DOC)’s anti-circumvention and anti-subsidy investigation.

DOC not yet issued final decision for trade remedies on hardwood plywood The US Department of Commerce (DOC) has not yet issued the final determination on the imposition of anti-dumping and countervailing duties on certain hardwood plywood products and veneered panels exported from Vietnam.