G/L/1286  
G/SG/N/13/VNM/2  
 
4 December 2018  
(18-7634) 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 
(Monosodium glutamate ) 
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 Safeguards, 
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 PRODUCT SUBJ ECT TO THE MEASURE F OR 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 Monosodium glutamate. Further details regarding the measure 
are set out i n the notification on definitive measures: G/SG/N/7/VNM/3/Rev.1 -G/SG/N/8/VNM/5 -
G/SG/N/10/VNM/4 -G/SG/N/11/VNM/3/Rev.1 dated 23 October 2017. The Subject Good under 
investigation is Monosodium glutamate classified under HS code 2922.4220 imported into Viet N am.  
 
2  PROVIDE THE DATES OF  INITIATION AND CONC LUSION OF THE REVIEW  
 
On 1 September 2015, Vietnam Competition Authority (now the T rade Remedies Authority of 
Viet Nam) hereafter referred to as the "Investigating Authority " initiated an investigation to apply a 
definitive safeguard measure on imports of Monosodium glutamate which was imposed on 
25 March  2016. In March 2018, the Investigating Authority initiated the review process and the 
conclusion of the review was issued o n 30 October 2018.  
 
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 cond ucted analysis focusing on data related to the period 
between 2015 and 2017.  
 
The results of review of the safeguard measure are as follows:  
 
                                                
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/1286 • G/SG/N/13/VNM/2  
 
- 2 - 
 
  - The effective safeguard measure has made a positive impact on the reduction of Monosodium 
glutamate imports.  
- On the source of imports, China, Indonesia and Thailand are the three main exporters of 
Monosodium glutamate into Viet Nam . 
- During the investigation, the domestic industry has made an plan for 04 years. S o after 
2 years of implementation of the safeguard m easure, 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:  
 
- Capacity utilisation increased from 86% in 2015 to 97% in 2016 and fell to 93% in 2017.  
- Profit on domestic sales increased by 20.93% in 2016 compared to the previous year, and 
decreased by 9.27% in 2017 compared to 2016.  
- The profit margin increased from 14.55% in 2015 to 17.36% in 2016 and decreased to 
15.05% in 2017.  
- The number of employees  was reduced from 2,715 people in 2016 down to 2,697 people 
in 2017, while labour costs continued to increase.  
- Inventories fell sharply to 39.77% in 2016. However, inventories increased rapidly in 2017 
by 23.43%.  
 
Overall, with the indicators on the produc tion and business as a bove showed that the production  and 
business situation of the domestic industry has not significantly improved in the period 2015 -2017. 
Especially in 2017, when the tariffs were reduced according to the roadmap, some indicators of 
production and business of the domestic industry also showed signs of decline.  
 
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 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 INDUST RY AND TRADE  
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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