When a Chinese company operating in Vietnam receives notice of a trade remedy investigation, how it reacts in the first few weeks largely determines the outcome. This article is a response playbook for the respondent side in a Vietnamese investigation — based on the legal framework currently in force.
Two positions Chinese companies often confuse
A Chinese company in Vietnam may face a trade remedy investigation in two very different positions:
- Position (a): investigated by Vietnam — goods imported into Vietnam are alleged to be dumped, subsidized, or causing injury to domestic production. This is the scope of this article.
- Position (b): exports from its Vietnamese factory investigated by a third country — for example, goods exported from Vietnam to the US or EU facing anti-dumping action. That position has its own playbook (origin proof, value-chain separation).
Confusing the two is a common mistake: the investigating authority, applicable law, and the company’s obligations differ in each case.
The legal framework currently in force
- Law on Foreign Trade Management 2017 — Article 70 sets out the procedures for trade remedy investigations.
- Decree 86/2025/ND-CP — effective 1 July 2025, fully replacing Decree 10/2018/ND-CP. Any guide still citing Decree 10/2018 as current law is outdated.
- Circular 26/2025/TT-BCT — replacing Circular 37/2019/TT-BCT, detailing investigation procedures.
- The investigating authority is the Trade Remedies Authority of Vietnam (Ministry of Industry and Trade).
Three trade remedies plus the anti-circumvention measure
| Measure | When it applies |
|---|---|
| Anti-dumping | Imported goods are sold into Vietnam below their normal value in the exporting market, injuring domestic production. |
| Countervailing (anti-subsidy) | Imported goods benefit from subsidies in the exporting country, injuring domestic production. |
| Safeguard | A sudden import surge seriously injures domestic production, regardless of dumping. |
| Anti-circumvention (new under Decree 86/2025) | Chinese companies transhipping through third countries, or doing simple assembly in Vietnam to dodge anti-dumping duties, may be investigated and have measures extended to the circumvention itself. |
The anti-circumvention warning matters most for Chinese companies: “minimal production in Vietnam just to change the origin label” is no longer a safe zone under Decree 86/2025.
Investigation procedure
- Petition filing — the domestic industry or its representatives file a request for trade remedy measures with the investigating authority.
- Decision to investigate — within 45 days of receiving a complete valid dossier (extendable by 30 days), the Minister of Industry and Trade decides whether to initiate.
- Investigation — maximum 12 months from the initiation decision, extendable by no more than 6 months.
- Consultations — interested parties present views and evidence.
- Final determination and duty imposition — if warranted, anti-dumping, countervailing, or safeguard measures are imposed.
Provisional measures may apply before the final determination — duty costs can arise mid-investigation.
Six-step response playbook for respondents
- Register as an interested party immediately. Only registered parties get file access, receive questionnaires, and join consultations. Late registration means losing the right to rebut.
- Answer the questionnaire fully and on time. The authority requests pricing, cost, and corporate-structure data. Non-cooperation or gaps let the authority use “facts available” — almost always worse than the company’s real data.
- Prove price and cost systematically. Prepare accounting books, raw-material purchase contracts, and domestic/export price lists to rebut dumping allegations or show a low margin.
- Join on-site verification. Investigators may verify data at the company. Have accountants, in-house counsel, and interpreters ready with original documents.
- Offer a price undertaking. In anti-dumping cases, exporters may offer to adjust prices instead of facing duties — negotiate early, as undertakings need authority acceptance.
- Track reviews and exemptions after duties are imposed. Measures have fixed terms with sunset reviews, interim reviews, and exemption mechanisms. Calendar review deadlines to file for reduction or exemption in time.
Cases to watch
- Decision 2652/QD-BCT (13 October 2026): anti-dumping duties on polyester filament yarn from China extended for 5 years, applying from 16 October 2026 to 15 October 2031. Companies in the yarn–textile chain should price this into procurement plans now.
- Decision 1959/QD-BCT: anti-dumping duties of 23.10%–27.83% on hot-rolled coil (HRC) steel from China. Rates vary by exporter — cooperating exporters got lower rates.
FAQ
Q: Can a Chinese company with a factory in Vietnam still face a Vietnamese anti-dumping investigation?
A: Yes, if goods it imports into Vietnam (materials, components, finished products from China) fall under investigation. Having a factory in Vietnam does not shield import activity.
Q: What happens if we do not answer the questionnaire?
A: The authority will decide based on facts available — in practice producing much higher duty rates than full cooperation.
Q: How does anti-circumvention affect simple assembly models in Vietnam?
A: Under Decree 86/2025, simple assembly in Vietnam aimed at dodging anti-dumping duties may be investigated for circumvention with duties extended. Companies should reassess the real value-added ratio in Vietnam.
Legal sources
- Law on Foreign Trade Management 2017, Article 70 — thuvienphapluat.vn
- Decree 86/2025/ND-CP (effective 1 July 2025, replacing Decree 10/2018/ND-CP) — thuvienphapluat.vn
- Circular 26/2025/TT-BCT (replacing Circular 37/2019/TT-BCT) — thuvienphapluat.vn
- Decision 2652/QD-BCT dated 13 October 2026; Decision 1959/QD-BCT — Ministry of Industry and Trade
This article provides general legal information and is not legal advice for any specific case. Content has been reviewed by the AI Legal Council before publication, not by a human lawyer.
Contact FLAT Law Firm
If your company has received a trade remedy investigation notice or needs a risk assessment on anti-dumping exposure for its supply chain, contact our lawyers at contact us.
Related articles
- Origin fraud to evade anti-dumping duties: penalties
- Exports from Vietnamese factories facing third-country trade remedy investigations (the exporter position)
- New trade remedy law: key changes under Decree 86/2025