G/L/1287  
G/SG/N/13/VNM/3  
 
4 December 2018  
(18-7639) Page: 1/2 
Council for Trade in Goods  
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.5 OF THE A GREEMENT  
ON SAFEGUARDS OF THE  RESULTS OF A MID -TERM 
REVIEW REFERRED TO I N ARTICLE 7.4  
VIET NAM 
(Certain semi -finished and finished products of alloy and non -alloy steel ) 
The following communication, dated 30 November 2018 , is being circulated at the request of the 
Delegation of Viet Nam.1 
 
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This notification is made pursuant to paragraph 5 of Article 12 of the Agreement on Safegu ards, 
which sets forth that mid -term reviews, under paragraph 4 of Article 7, shall be notified to the 
Council for Trade in Goods, in conformity with the format established in document G/SG/1/Rev.1, 
dated 5 November 2009.  
 
1  SPECIFY THE MEASURE AND THE PRODU CT SUBJECT TO THE ME ASURE FOR WHICH THE 
MID-TERM REVIEW WAS CONDUCTED, AND PROVI DE REFERENCE TO THE WTO DOCUMENT 
THAT NOTIFIED THE SA FEGUARD MEASURE SUBJ ECT TO THE REVIEW  
 
The measure is a tariff on imports of certain semi -finished and finished products of  alloy and non -
alloy steel. Further details regarding the measure are set out in the notification on definitive 
measures: G/SG/N/8/VNM/3, G/SG/N/10/VNM/2 and G/SG/N/11/VNM/4 dated 2 August 2016. The 
Subject Goods under investigation is certain semi -finishe d and finished products of alloy and non -
alloy steel imported into Vietnam.  
 
The steel products covered by the investigation include:  
 
a. Semi-finished products of iron or non -alloy steel products;  
b. Bars & rods of iron or non -alloy steel.  
 
Certain steel products under HS Code: 7207.11.00; 7207.19.00; 7207.20.29; 7207.20.99; 
7224.90.00; 7213.10.00; 7213.91.20; 7214.20.31; 7214.20.41; 7227.90.00; 7228.30.10; 
9811.00.00.  
 
2  PROVIDE THE DATES OF  INITIATION AND CONC LUSION OF THE REVIEW  
 
On 18 July 2016, Vietnam Competition Authority (now the Trade Remedies Authority of Viet Nam, 
hereafter referred to as the "Investigating Authority ") initiated an investigation to apply a definitive 
safeguard measure on imports of certain semi -finished and finished products of all oy and non -alloy 
steel which was imposed on 02 August 2016. In March 2018, the Investigating Authority initiated 
the mid -term review process and the conclusion of the review was issued on 30 October 2018.  
 
                                                
1 A copy of the decision of  the competent authority has been submitted electronically (in Vietnamese 
only). To consult this document, please contact Ms Budd ( hilary.budd@wto.org ) or Ms Naville 
(delphine.naville@wto.org ) of the Rules Division.   G/L/1287 • G/SG/N/13/VNM/3  
 
- 2 - 
 
  3  DESCRIBE THE RESULTS  OF THE REVIEW, PROV IDING SOME  DETAIL ON THE BASIS  FOR 
REACHING THOSE RESUL TS 
 
In order to review the situation of the domestic industry after the imposition of the safeguard 
measure, the Investigating Authority conducted analysis focusing on data related to the period 
from 2015 to Mar ch 2018.  
 
The review results are as follows:  
 
- The effective safeguard measure has made a positive impact on the reduction of Semi -
finished products of iron or non -alloy steel products imports, which decreased by 86.3% 
in 2016 compared to 2015, and decrease d by 99% in 2017 compared to 2016. On the 
source of imports, Japan, Taiwan and China are the three main exporters of high quality 
Semi-finished products of iron or non -alloy steel products into Vietnam.  
- The effective safeguard measure has made a positive i mpact on the reduction of Bars & 
rods of iron or non -alloy steel imports, decreased by 45% in 2016 compared to 2015, and 
decreased by 64% in 2017 compared to 2016.  
- During the investigation, the domestic industry has made an adjustment plan for 4 –
5 years. S o after 2 years of implementation of the safeguard measure, the domestic 
industry still needs more time to recover.  
 
The state of production and business of the domestic industry after the safeguard measure took 
effect:  
 
- Semi-finished products of iron or n on-alloy steel products:  
• The production of the domestic industry increased slightly by 6.02% in 2017 compared 
to 2016, and 1.42% in 2018 compared to 2017.  
• Profit on domestic sales decreased by 1.46% in 2017 compared to 2016 and the trend 
continued in March  2018.  
• Inventories decreased by 27.72% in 2017 compared to 2016 and 45.78% in March 
2018 compared to 2017.  
• The number of employees did not change significantly.  
 
- Bars & rods of iron or non -alloy steel:  
• The production of the domestic industry increased sli ghtly by 6.97% in 2017 compared 
to 2016, and 2.79% in 2018 compared to 2017.  
• Profit on domestic sales increased by 8.26% in 2017 compared to 2016, and decreased 
by 8.25% in March 2018 compared to 2017.  
• Inventories decreased by 1.71% in 2017 compared to 201 6 and increased by 4.95% 
in March 2018 compared to 2017.  
• The number of employees did not change significantly.  
 
Overall, the abovementioned production and business indicators showed that the production and 
business situation of the domestic industry has n ot significantly improved in the period from 2016 
to March 2018 .  
 
Therefore, maintaining the safeguard measure is necessary to ensure its effectiveness for the 
recovery of the domestic industry.  
 
4  CONCLUSION  
 
Based on the result of the mid -term review, the  Investigating Authority considers that the imposition 
of the safeguard duty is still necessary and recommends that the pace of liberalization should remain 
unchanged.  
LEGAL AFFAIRS DIVISION  
TRADE REMEDIES AUTHORITY OF VIET NAM – MINISTRY OF INDUSTRY AND T RADE  
Address: 25 Ngo Quyen Street, Hoan Kiem District, Hanoi, Vietnam  
Phone: (+84 24) 7303.7898 (ext: 130)  
Fax: (+84 24) 7303.7897  
Email: pvtm@moit.gov.vn  
 
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