G/SG/N/8/VNM/3/Suppl.4  
G/SG/N/10/VNM/2/Suppl.3  
G/SG/N/11/VNM/4/Suppl.4  
 
24 March 2023  
(23-2145) Page: 1/7 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE AGREEMENT  
ON SAFEGUARDS ON TAKING A DECISION TO APPLY A SAFEGUARD  
MEASURE (EXTENSION OF THE EXISTING MEASURE)  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
VIET NAM 
Certain semi -finished and finished products of alloy and non -alloy steel  
Supplement  
The following communication, dated and received on 24 March 202 3, is being circulated at the 
request of the delegation of Viet Nam.  
 
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The Ministry of Industry and Trade of the Socialist Republic of Viet Nam hereinafter referred to as 
"MOIT" encloses a notification pursuant to Article 12.1(c) and Article 9, footnote 2 of the 
WTO Agreement on Safeguards, on deciding to extend the safeguard measure that is being applied 
against imports of certain semi -finished and finished products of alloy and non -alloy steel under HS 
code of  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; 7229.90.00; 7228.30.10; 9811.00.10.  
Consistent with Article 12.3 of the Agreement on Safeguards, MOIT is ready to hold  consultations 
with those Members having a substantial interest as exporters of the product concerned.  
A. NOTIFICATION UNDER ARTICLE 7.2 AND 12.1(C) OF THE AGREEMENT ON SAFEGUARDS 
UPON TAKING A DECISION TO EXTEND A SAFEGUARD MEASURE  
1. Evidence that the safeguard measure continues to be necessary to prevent or remedy 
serious injury or threat thereof caused by increased imports and that the industry 
concerned is adjusting  
The investigation has been conducted by the Viet Nam Investigating Authority. In order to review 
the situation of the domestic industry after imposition of the safeguard measure, an evaluation of 
all relevant factors of an objective and quantifiable nature was undertaken for the period under 
consideration (PUC), 2019 - 2022. The data, which were submitted by the applicant companies and 
used in this analysis, represent major proportion of the tot al domestic production of the product 
involved according to the 2022 figures.  
a. For certain semi -finished products of alloy and non -alloy steel  
The impact of the imported products on the domestic industry has been absent since 2020.  
The domestic manufacturing industry has accounted for 100% of the market share and did not suffer 
from the impact of imported goods since 2020. The domestic industry has been well -invested in G/SG/N/8/VNM/3/Suppl.4 • G/SG/N/10/VNM/2/Suppl.3 • G/SG/N/11/VNM/4/Suppl.4  
 
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  production and is self -sufficient with the source of raw materia ls production, so the need to import 
the semi -finished product to serve production is no more. Not only meeting the domestic demand, 
but the domestic industry is also exporting to several markets around the world with the export 
volume tending to increase.  
The production and business indicators show that the production and business situation has 
improved remarkably. Although there are still a few indicators showing the element of serious injury, 
according to the assessment of the competent authority, these difficulties come mainly from the 
business of selling finished goods such as rebars, wire rod, etc.  
b. For finished products of alloy and non -alloy steel  
Description  Unit Year 
2019  2020  2021  2022  
Production  Index  100 111 130 129 
Capacity Utilization  Index  100 93 95 89 
Domestic Sales  Index  100 111 122 121 
Market Shares of the 
Applicant  Index  100 114 116 112 
Revenue  Index  100 100 142 147 
Profit  Index  100 119 348 49 
Inventory  Index  100 62 149 125 
Employment  Index  100 107 138 134 
As shown in the Table above, the performance of the domestic industry can be seen as follows:  
− The production output also began to decline in 2022, with a decrease of 1.5% compared 
to 2021.  
− In 2022, the capacity utilization rate hit the bottom at 65.6% during the period 2019 -2022.  
− The domestic sales volume of domestic industry in 2022 also decreased by 0.9% compared 
to 2021.  
− The domestic sales profit of the domestic industry sharply decreased in 2022, with a 
decrease of 86% compared to 2021.  
− The profit m argin has also sharply decreased, reaching only 2.1% in 2022, the lowest since 
2019.  
− Confronted with challenge in 2022, the domestic industry has also had to reduce its 
workforce, with the number of employees decreasing by 6.8% compared to 2021.  
− Furthermor e, the latter half of 2022 witnessed a state of serious difficulty and losses for 
many companies of the domestic industry. Some of the largest companies had to suspend 
operations or shut down blast furnaces in the latter months of the year, such as Hoa Pha t 
Dung Quat, Hoa Phat Hung Yen, Pomina, Formosa, and Thai Nguyen Steel or had not 
achieved their production plans, such as Southern Steel and Maruichi Sunsco. Consequently, 
many companies of the domestic industry had to lay off workers and halt production,  thus 
unable to participate in answering questionnaires related to this investigation. If there were 
full data from all manufacturing companies in the domestic industry, it would further 
demonstrate the difficult situation faced by the domestic industry.  
c. Adjustment of the domestic industry  
The domestic industry has conducted adjustment plans aiming at increasing its productivity, and 
product quality such as an adjustment in production, production line, technology, employment, 
management, and marketing.  G/SG/N/8/VNM/3/Suppl.4 • G/SG/N/10/VNM/2/Suppl.3 • G/SG/N/11/VNM/4/Suppl.4  
 
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  2. Information on whether there is an absolute increase in imports or an increase in 
imports relative to domestic production  
Imports figures of the PUC are presented in the table below. In addition to the figures covered by 
the PUC, imports statistics of the last 3 – month periods of 2021 and 2022 are provided as 
supplementary information.  
Year 2019  2020  2021  2022  Last 3 
month s of 
2021  Last 3 
month s of 
2022  
Semi -finished products of alloy and non -alloy steel  
Imports (Ton)  98,545 0 0 0 0 0 
Trend (%)  - - - - - - 
Finished products of alloy and non -alloy steel  
Imports (Ton)  343,458  324,669  316,989  183,482  36,910  42,810  
Trend (%)  - -5.5 -2.4 -42.1 - 16.0 
After seven years of applying the safeguard measure, the import volume of the semi–finished 
product under review has decreased remarkably, showing the positive effect of the measure. 
Since  2020, Viet Nam has not imported semi –finished products.  
On the other hand, the import volume of the finished product is still maintained at an a ccountable 
level. On the contrary, the most recent import data of finished products shows an absolute increase, 
in the last 3 -month period of 2022, quantity of imports increased by 16%, compared to the same 
period of the previous year.  
3. Precise descripti on of the product involved  
Certain semi -finished and finished products of alloy and non -alloy steel 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; 7229.90.00; 7228.30.10; 9811.00.10  
4. Description of any part of the imported product that will no longer be subject to the 
measure in the extension  
Certain semi -finished products of alloy and non -alloy steel under HS code 7207.11.00; 7207.19.00; 
7207.20.29; 7207.20.99; 7224.90.00.  
5. Precise description of proposed measure  
The safeguard measure is proposed to be extended for 3 years from March 22, 2023, until 
March  21, 2026 (March 21, 2026, is included) in the form of ad valorem  duties which are shown in 
the relevant columns of the table below.  
Timetable  Finished products of alloy  
and non -alloy steel  
From March 22, 2023, to March 21, 2024  6.3%  
From March 22, 2024, to March 21, 2025  6.2%  
From March 22, 2025, to March 21, 2026 6.1%  
From March 22, 2026, onwards  0% 
6. Proposed date of introduction of the measure  
See the response to item 5 above.  
7. Expected duration of the measure  
See the response to item 5 above.  G/SG/N/8/VNM/3/Suppl.4 • G/SG/N/10/VNM/2/Suppl.3 • G/SG/N/11/VNM/4/Suppl.4  
 
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  8. For a measure with a duration of more than three years, provide the proposed date for 
the review (under Article 7.4) to be held not later than the mid -term of the measure, if 
such a date for the review has already been scheduled  
Not applicable.  
9. Expected timetable for progressive liberalization of the measure  
See the response to item 5 above.  
10. If the notification relates only to a finding of serious injury or threat thereof, and does 
not relate to a decision to apply or extend a safeguard meas ure  
Not applicable.  
11. If the measure is being extended, also provide:  
(i) evidence that the industry concerned is adjusting and that the safeguard measure continues 
to be necessary to prevent or remedy serious injury: provided in item 1 ; 
(ii) reference to the W TO document that notified the initial application of the measure:  
G/SG/N/8/VNM/3, G/SG/N/10/VNM/2, G/SG/N/11/VNM/4 ; 
(iii) duration of the measure from initial application till the date at which it will be extended:  
The initial safeguard measure was applied from 22, March 2016 to 21, March 2020. Viet  Nam 
now extends the safeguard measure until 21, March 2026 (21, March 2026 is included) ; 
and, 
(iv) precise description of the measure in place before the date of extension (in this context, 
please note that th e last sentence of Article 7.4 states that: "A measure extended under 
paragraph 2 shall not be more restrictive than it was at the end of the initial period, and 
should continue to be liberalized.") . 
Timetable  Finished products of alloy and 
non-alloy steel  
From March 22, 2016 (the date which the provisional 
safeguard measure takes into effect) to August 01, 2016 
(one day before the definitive safeguard measure takes 
into effect ) 14.2%  
(provisional safeguard measure)  
From August 02, 2016 (the date on which the definitive 
safeguard measure takes into effect) to March 21, 2017  15.4%  
From March 22, 2023, to March 21, 2024  6,3%  
From March 22, 2024, to March 21, 2025  6,2%  
From March 22, 2025, to March 21, 2026  6,1%  
From March 22, 2026, onwards  0% 
12. If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information:  
(i) The major exporting Members of imports of the product involved.  
(ii) If there are any exporting Members to which t he measure does not apply for any reason 
other than the application of Article 9.1, the names of such exporting Members and reasons 
for non -application of the measure.  
Not applicable  G/SG/N/8/VNM/3/Suppl.4 • G/SG/N/10/VNM/2/Suppl.3 • G/SG/N/11/VNM/4/Suppl.4  
 
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  13. Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority. This 
document may be in the original language of the Member, even when the language is not 
one of the official languages of the WTO. The document will neith er be translated nor 
circulated to the Committee but will be made available by the Secretariat to Members 
requesting it.  
The official documents regarding the investigation and the final decision can be reached from the 
link below:  
http://www.trav.gov.vn/  
B. NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS  
1. The measure  
It is proposed to impose safeguard measures in the form of ad valorem duties which will be 
progressively liberalized as described in item A.5 above.  
2. The product subject to the measure  
The measure is applied to the products described in item A.3 above.  
3. Developing countries to which the measure is not applied under article 9.1 of the  
Agreement on Safeguards  
Developing countries which are excluded from the measure under Article 9.1 of the Agreement on 
Safeguards are listed below:  
3.1. Sub - Saharan Africa  
Angola  Madagascar  Nigeria  
Benin  Malawi  Rwanda  
Botswana  Mali Sao Tome and Principe  
Burkina  Faso Mauritania  Senegal  
Burundi  Mauritius  Sierra Leone  
Cabo Verde  Mozambique  Somalia  
Cameroon  Namibia  South A frica 
Central African Republic  Niger  South Sudan  
Chad Gabon  Sudan  
Comoros  Gambia, The  Swaziland  
Congo, Dem. Rep.  Ghana  Tanzania  
Congo, Rep.  Guinea  Togo 
Cote d'Ivoire  Guinea -Bissau  Uganda  
Eritrea  Kenya  Zambia  
Ethiopia  Lesotho  Zimbabwe  
  Liberia    
3.2. Asia Pacific  
American Samoa  Myanmar  
Cambodia  Palau  
Fiji Papua New Guinea  
Kiribati  Philippines  
Korea, Dem. Rep.  Samoa  
Lao PDR  Solomon Islands  
Marshall  Islands Timor -Leste  
Micronesia, Fed. Sts.  Tonga  G/SG/N/8/VNM/3/Suppl.4 • G/SG/N/10/VNM/2/Suppl.3 • G/SG/N/11/VNM/4/Suppl.4  
 
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  Mongolia  Tuvalu  
Malaysia  Vanuatu  
Thailand  Indonesia  
3.3. Europe and Central Asia  
Albania  Macedonia, FYR  
Armenia  Moldova  
Azerbaijan  Montenegro  
Belarus  Romania  
Bosnia and H erzegovina  Serbia  
Bulgaria  Tajikistan  
Georgia  Turkey  
Kazakhstan  Turkmenistan  
Kosovo  Ukraine  
Kyrgyz Republic  Uzbekistan  
3.4. Latin America and the Caribbean  
Belize  Guyana  
Bolivia  Haiti 
Brazil  Honduras  
Colombia  Jamaica  
Costa Rica  Mexico  
Cuba Nicaragua  
Dominica  Panama  
Dominican Republic  Paraguay  
Ecuador  Peru 
El Salvador  St. Lucia  
Grenada  St. Vincent and the Grena dines 
Guatemala  Suriname  
3.5. Middle East and North Africa  
Algeria  Libya  
Djibouti  Morocco  
Egypt, Arab Rep.  Syrian Arab Republic  
Iran, Islamic Rep.  Tunisia  
Iraq West Bank and Gaza  
Jordan  Yemen, Rep.  
Lebanon    
3.6. South Asia  
Afghanistan  Maldives  
Bangladesh  Nepal  
Bhutan  Pakistan  
India Sri Lanka  
Information regarding the procedures and relevant deadlines with regard to the investigation is 
contained in the notice of initiation (G/SG/N/6/VNM/5/Suppl.2).  G/SG/N/8/VNM/3/Suppl.4 • G/SG/N/10/VNM/2/Suppl.3 • G/SG/N/11/VNM/4/Suppl.4  
 
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  Further information and comments should be sent to:  
TRADE REMEDIES AUTHORITY OF VIET NAM – MINISTRY OF INDUSTRY AND TRADE  
Address: 23 Ngo Quyen Street, Hoan Kiem District, Ha Noi, Viet Nam  
Phone: (+84 24) 7303.7898 (ext: 126)  
Fax: (+84 24) 7303.7897  
Email: trongnd@moit.gov.vn ; cuongnth@moi t.gov.vn.  
 
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