G/SG/N/8/VNM/2  
G/SG/N/10/VNM/1  
G/SG/N/11/VNM/1  
 
12 September 2013  
(13-4807)  Page: 1/3  
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE AGREEMENT 
ON SAFEGUARDS ON TAKING A DECISION 
TO APPLY A SAFEGUARD MEASURE 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, 
OF THE AGREEMENT ON SAFEGUARDS 
VIET NAM 
(Articles of Vegetable Oils) 
 
 
The following communication, dated 10 September 2013, is being circulated at the request of the Delegation of Viet Nam.
1 
 
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Pursuant to Article 12.1(c) of the WTO Agreement on Safeguards, the Socialist Republic of 
Viet Nam hereby wishes to notify the Committee on Safeguards that the Vietnam Competition Authority hereafter referred as "the Investigating Authority" decided to apply definitive safeguard 
measure on the imports of "vegetable oils under HS Codes 1507.90.90, 1511.90.91, 1511.90.92 
and 1511.90.99".    The above measure was announced in the Decision  5987/QD-BCT of the Ministry of Industry and 
Trade dated 23 August 2013.  
 1. Precise description of the product involved 
 
Refined soya-bean oil and refined palm oil under HS Codes 1507.90.90, 1511.90.91, 1511.90.92 
and 1511.90.99.  
 
2. Period of investigation (POI) 
 
December 2012 – August 2013.  
 
3. Evidence of serious injury or threat thereof caused by increased import and 
evidence that the domestic industry is adjusting  
 
In the period of 2009 - 2012, the import volume of  the subject product increased in both relative 
and absolute terms. In absolute terms, in 2010 the import volume increased by 16.71% compared 
to 2009, continued to grow by 23.95% in 2011 and by 2012 rose significantly by 45.83%. In 
relative terms, in both 2010 and 2011, the volu me of imports increased by 18.82% and 8.70% 
respectively and rose sharply in 2012, by 57.61%.  
                                               
1 In continuation of notification G/SG/N/7/VNM/1 dated 15 May 2013. G/SG/N/8/VNM/2 • G/SG/N/10/VNM/1 • G/SG/N/11/VNM/1 
 
- 2 - 
 
  The increase in imports has caused serious injury to the domestic vegetable oil industry in 
Viet Nam. Specifically:   -  Market share: in the period of 2009 - 2012,  the market share of the domestic industry 
decline from 52% to 27%. This reduction co rresponds to an increase in the market 
share of imports (from 48% to 73%) during the same period. Especially in 2012, the market share of imports was about 2.5 time s than that of the domestic industry. 
 
 -  Production: the decline in production was obvious in 2012, decreased by 32% 
compared to 2011 and was the lowest in the period of 2009-2012. 
 
 -  Capacity: although the design capacity of  the domestic industry has increased steadily 
over the years to meet the demand for consumption in the market, utilization capacity decreased significantly from 35% in 2011 to 24% in 2012. 
 
-  Turnover: in the period of 2009 - 2011, turnover of the domestic industry has 
consistent growth. In 2010, domestic sales increased by about 50% compared to 
2009, domestic sales in 2011 even nearly double that of 2009 . However, in 2012 
turnover suddenly declined by about 38% compared to 2011. 
 
-  Profit: corresponding to the decreasing trend in turnover, profit plummeted 
dramatically in 2012. Profit of the dome stic industry in 2012 decreased by 31% 
compared to 2011 and was only by 56% of that of 2010. 
 
 -  Price: in 2012, the price of imported product has a significant decline (by 4%) 
compared to 2011. The decrease in price of imported product by 4% caused domestic manufacturers to lower their price by 6% in 2012 despite of being in the trend to 
increase during the period of 2009-2011. 
 
-  Employees: in the period of 2009 - 2011, la bour force in direct production of the 
subject product is being increased, however since 2012, the labour force decreased 
suddenly by 16% compared to 2011.   
 4. Precise description of measure 
 
The definitive safeguard measure shall be applied in  the form of additional import duty on subject 
product imported into Viet Nam as provided below: 
 
Duration of application Duty applied 
07/5/2013 – 06/5/2014 5% 
07/5/2014 – 06/5/2015 4% 
07/5/2015 – 06/5/2016 3% 
07/5/2016 – 06/5/2017 2% 
 
5. Proposed date of introduction of measure  
 
The definitive safeguard measure will take effect after 15 days from the date of signing of the 
Decision by the Minister of Industry and Trade.  
 
6. Proposed duration of measure 
 
The duration of the ddefinitive sa feguard measures is 4 years.  
  
7. Further information 
 
After the definitive safeguard measure takes effe ct, the General Department of Viet Nam Customs 
shall proceed to apply additional import duty wi th duty rates pursuant to the schedule mentioned 
in section 4 above on subject products imported from countries/regions, except for those eligible 
for exclusion in the list of the attached Appendix. G/SG/N/8/VNM/2 • G/SG/N/10/VNM/1 • G/SG/N/11/VNM/1 
 
- 3 - 
 
  APPENDIX 
 
List of Countries Excluded from the Application of Definitive Safeguard 
Measures on Vegetable Oils under HS Codes 1507.90.90, 
1511.90.91, 1511.90.92 and 1511.90.99 
 
East Asia and Pacific  
American Samoa Samoa  Cambodia 
Marshall Islands Solomon Islands China  
Micronesia, Fed. Sts Thailand Fiji  
Mongolia Timor-Leste Myanmar  
Tuvalu  Kiribati Palau 
Tonga  Korea, Dem. Rep. Papua New Guinea 
Vanuatu  Lao PDR Philippines 
 
Europe and Central Asia  
Albania Hungary Romania 
Armenia Kazakhstan Serbia 
Azerbaijan Kosovo Tajikistan 
Belarus Kyrgyz Republic Turkey 
Bosnia and Herzegovina Macedonia FYR Turkmenistan 
Bulgaria Moldova Ukraine 
Georgia Montenegro Uzbekistan 
 
Latin America and the Caribbean Argentina Ecuador Nicaragua 
Belize El Salvador Panama 
Bolivia Grenada Paraguay 
Brazil Guatemala Peru 
Colombia Guyana St. Lucia 
Costa Rica Haiti St. Vincent and the Grenadines 
Cuba Honduras Suriname 
Dominica Jamaica Venezuela, RB 
Dominican Republic Mexico  
 
Middle East and North Africa Algeria Jordan Tunisia 
Djibouti Lebanon West Bank and Gaza 
Egypt, Arab Rep. Libya Yemen, Rep. 
Iran, Islamic Rep. Morocco   
Iraq Syrian Arab Republic  
 
South Asia 
Afghanistan India Pakistan 
Bangladesh Maldives Sri Lanka 
Bhutan Nepal  
 
Sub-Saharan Africa 
Angola Gambia, The Rwanda 
Benin Ghana São Tomé and Principe 
Botswana Guinea Senegal 
Burkina Faso Guinea-Bissau Seychelles 
Burundi Kenya Sierra Leone 
Cameroon Lesotho Somalia 
Cape Verde Liberia South Africa 
Central African Republic Madagascar South Sudan 
Chad Malawi Sudan 
Comoros Mali Swaziland 
Congo, Dem. Rep. Mauritania Tanzania 
Congo, Rep Mauritius Togo 
Côte d'Ivoire Mozambique Uganda 
Eritrea Namibia Zambia 
Ethiopia Niger Zimbabwe 
Gabon Nigeria  
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