Sudden surges of cheap imports can push domestic manufacturers out of the market within a few quarters. The legal tool for addressing this is trade remedies. From 01/7/2025, Vietnam trade remedy framework changed fundamentally with Decree 86/2025/ND-CP. This article summarizes the key points that manufacturers, importers and exporters need to know.
1. Current legal framework: Foreign Trade Management Law + Decree 86/2025 + Circular 26/2025
Trade remedies in Vietnam are governed by:
- Law on Foreign Trade Management 05/2017/QH14, Chapter IV — the original trade remedy framework, effective from 01/01/2018;
- Decree 86/2025/ND-CP (issued 11/4/2025, effective 01/7/2025) — 6 chapters, 117 articles, replacing Decree 10/2018/ND-CP;
- Circular 26/2025/TT-BCT (issued 15/5/2025, effective 01/7/2025) — replacing Circular 37/2019/TT-BCT and Circular 42/2023/TT-BCT.
Important note: no trade remedy ordinance remains in force — businesses must no longer cite Ordinance 42/2002/PL-UBTVQH10 as current legal authority.
2. Four types of trade remedy cases
Under Article 3.2 of Decree 86/2025/ND-CP, there are four types of trade remedy cases:
- Anti-dumping — applied to dumped imports causing or threatening to cause material injury to the domestic industry;
- Countervailing (anti-subsidy) — applied to subsidized imports causing or threatening to cause material injury to the domestic industry;
- Safeguards — applied when surging imports cause or threaten to cause serious injury to the domestic industry;
- Anti-circumvention — applied where acts circumventing applied trade remedy measures are found.
3. Latest case: extension of anti-dumping duties on polyester yarn
A practical illustration of the new framework in operation is Decision 2652/QD-BCT (13/10/2026) of the Ministry of Industry and Trade extending anti-dumping duties on polyester yarn for another 5 years (16/10/2026 – 15/10/2031). Applicable duty rates:
- India: 54.9%;
- Indonesia: 21.94%;
- Malaysia: 21.45%;
- China: from 3.36% to 17.45%.
Businesses importing polyester yarn from these markets should recalculate import costs and review supply contracts for the 2026–2031 period.
4. The early warning system of the Ministry of Industry and Trade
Alongside the investigation framework, the Ministry of Industry and Trade operates an early warning system on trade remedies: monitoring the risk of Vietnamese exports being investigated abroad and the risk of imports injuring domestic production. Businesses should:
- Follow warning notices relating to goods they manufacture, import or export;
- Keep complete production and business data ready to cooperate with investigations when requested;
- For exporters: review pricing policies and subsidies received to reduce the risk of becoming an investigation target in the importing market.
5. What businesses should do under the new framework
- Domestic manufacturers facing unfair import competition: may file a petition requesting investigation and application of trade remedy measures under the procedures of Decree 86/2025;
- Importers: check whether their goods are subject to applied or reviewed trade remedy measures; update anti-dumping/countervailing duty rates when new decisions are issued;
- Exporters: proactively follow the early warning system to respond when Vietnamese goods are investigated abroad.
Frequently asked questions
When did Decree 86/2025/ND-CP take effect?
From 01/7/2025, replacing Decree 10/2018/ND-CP.
How many types of trade remedy cases are there?
Four under Article 3.2 of Decree 86/2025: anti-dumping, countervailing, safeguards and anti-circumvention.
Is any trade remedy ordinance still in force?
No. Ordinance 42/2002 must not be cited as current legal authority.
Until when are anti-dumping duties on polyester yarn extended?
Under Decision 2652/QD-BCT (13/10/2026), extended for 5 years, from 16/10/2026 to 15/10/2031.
Sources
- Law on Foreign Trade Management 05/2017/QH14, Chapter IV (effective 01/01/2018);
- Decree 86/2025/ND-CP (11/4/2025, effective 01/7/2025) — replacing Decree 10/2018/ND-CP;
- Circular 26/2025/TT-BCT (15/5/2025, effective 01/7/2025) — replacing Circular 37/2019/TT-BCT and Circular 42/2023/TT-BCT;
- Decision 2652/QD-BCT (13/10/2026) — extension of anti-dumping duties on polyester yarn.
Conclusion
From 01/7/2025, trade remedies in Vietnam operate under a new framework: Decree 86/2025/ND-CP (replacing Decree 10/2018) and Circular 26/2025/TT-BCT (replacing Circulars 37/2019 and 42/2023), with four case types defined in Article 3.2. The extension of anti-dumping duties on polyester yarn under Decision 2652/QD-BCT shows these measures are being applied in substance, directly affecting importers costs. Businesses should update to the new framework and follow the early warning system of the Ministry of Industry and Trade.
Does your business import, manufacture or export goods exposed to trade remedy risk? Contact FLAT Law Firm for advice.
For reference only; not legal advice. This content was prepared by AI and will undergo quality review by the AI Legal Council of FLAT Law Firm before any publication consideration; it is not the legal opinion of a licensed human lawyer. Laws and regulations may change; verify the current legal texts before applying them.