The Korean management agency finally ruled the anti-dumping duty on Vietnamese plywood with the difference in the margin tax ranging from 4.2 to 13.04%. Causing difficulties for enterprises exporting this commodity
According to Mr. Trinh Xuan Duong, Deputy President of the Vietnam Plywood Association, the investigation and tax imposition from the Korean side is not objective. Only a very small number of Vietnamese enterprises among those investigated export this product to the Korean market. These enterprises account for no more than 20% of the total export turnover. The tax rates imposed on businesses. Businesses not subjected to mandatory investigation have a relatively larger margin compared to those that are investigated
Pictures of KeGo Company’s LVL plywood exporting to Korea
Korea is a potential market for Vietnamese plywood products. Currently, there are enterprises that do not or have very little export volume to the Korean market, even never exported to Korea. These businesses are not currently under investigation. In the future, when they want to export to this market, they will be subject to general tariffs. This situation is disadvantageous and unfair to those businesses in the long term. As well as leading to export market restrictions for Vietnam’s plywood industry in the long run.
Authorities expect that 152 businesses will incur tariffs higher than 4%. These businesses will not be able to compete and must cease operations. Workers of these businesses will lose their jobs due to the closure of hundreds of factories. Suppliers of raw materials will also have to halt operations.The absence of output prevents the planting of new forests. The entire supply chain for afforestation and forest product processing will be disrupted.
Thus, for the goals of the state in the coming time, related to green certification and limiting environmental pollution will be directly affected. Besides, Korean businesses are importing plywood from Vietnam and the system that comes with their business will also face huge problems.
