WORLD TRADE  
ORGANIZATION  G/SG/N/8/VNM/1 
12 January 2010 
 (10-0084) 
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 
 
VIETNAM 
 
(Float Glass
) 
  
 The following notification, dated 7 January 2010, is being circulated at the request of the 
Delegation of Vietnam.    
_______________ 
 
 
 Further to the Vietnam notification G/SG/N /6/VNM/1 circulated on 31 July 2009, and 
pursuant to Article 12.1 (b) of the Agreement on Safeguards, Vietnam notifies the Committee on 
Safeguards that a preliminary finding has been made  and that increased imports of float glass have 
caused injury to the domestic industry.    1. Evidence of serious injury or threa t thereof caused by increased imports 
 
 The Investigation Authority found after the firs t phase of investigation that increased imports, 
both in absolute terms and relative to domestic pr oduction, were the substantial cause of the serious 
injury to the domestic industry.  The domestic i ndustry suffered and is suffering significant difficulties 
in its operations in terms of declining market sh are, reduced sales, domestic production, employment, 
revenue and profit  and increased inventories.   
 
Market share  
 Market share of Vietnam Domestic Industry continuously decreased in  2006, 2007, 2008 and 
first quarter of 2009 with indexes in turn is 97.4 pe r cent, 96 per cent, 83.5 per cent and 73.6 per cent.   
 
Production, domestic sales and inventory 
 
 Though the domestic production was kept at the stable rate, domestic sales had great 
fluctuation.   G/SG/N/8/VNM/1 
Page 2  
 
  Sales volume of domestic producers 
 
 2006 2007 2008 QI /2009 
Domestic sales 100.00 109.11 78.90 19.01 
Exports 17.79 15.32 4.52 3.31 
Total (including exports) 117.79 124.43 83.42 22.32 
 
 Note :  Data in this table are indexed figures.   
 Source :  Responses of domestic producers to questionnaire.   
 
 Due to the sharp decrease in domestic sa le in 2008 and early 2009, the inventory also 
increased sharply, particularly in the en d of 2008 and first quarter of 2009.   
 
Inventory of domestic producers 
 
  2006 2007 2008 QI/ 2009 
Inventory 100 75 139 145 
Increase/decrease rate - -25.3% 85.6%  
 
Note :  Data in this table are indexed figures.   
Source :  Responses of domestic producers to questionnaire Revenue and profit.   
 
 In 2007, domestic industry got profit. Howeve r, domestic sales in 2008 severely decrease, and 
domestic industry suffered loss.    
Labor 
 
 Number of direct employees in the investigation period continuously decreased.  This is the domestic industry's efforts to enhance domestic pr oduction efficiency (production volume is kept 
stable).  However, even reducing employees in or der to cut costs, the domestic industry suffered 
losses in 2008 due to the import volume increase.    2. Information on an absolute increase in imports and an increase in imports relative to 
domestic production 
 
 The import of the product under investigation has increased in absolu te terms as also in 
relation to domestic production in Viet nam as shown in the table below:   
 
 Unit 2006 2007 2008 QI/ 2009 
Imports  MT 5,775 9,779.5 33,765 14,696 
Increase/decrease rate 
of imports % - 69.3% 245.3%  
Domestic production % 100 109.1 72.3 19 
Increase/decrease rate 
of domestic production % - 9.1% -27.7%  
Growth rate of imports 
in relative terms %  60.2% 273.0%  
 Source :  Generating from date of  General Department of Vietnam Customs and Domestic 
Producers'responses to questionnaire.    G/SG/N/8/VNM/1 
 Page 3 
 
 
   This table shows that import volume of produc ts under consideration remarkably rose during 
POI (from 2006 to first Quarter of 2009).  Amount of imports in 2006 was 5,775 MT and increased 
to 9,779.5 MT in 2007 (or 69.3 per cent in relati ve terms).  Imports progressively went up to 
33,765 MT in 2008 (245.3 per cent relatively).  In fi rst quarter I/2009, this amount was still very high, 
14,696 MT.   
 
3. Product under consideration 
 
 The product under this investigation is float glass (clear and tinted) imported into Vietnam 
under HS codes 7005 29 90 00 and 7005 21 90 00.   
 
4. Proposed provisional safeguard measure 
 
 Not available.    5. Further information 
 
 The Preliminary report was issued in 30 October 2009.      
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