MIT Deputy Minister Le Danh Vinh in an interview on Oct. 16 said the European Commission’s report on term-end review, which was made public on Oct. 13, did not objectively reflect the reality of Vietnam’s shoe-making industry. He said the proposal to extend the penalty taxes for 15 months is “unfair and unreasonable”.

According to the official, the EC in October 2006 decided to levy penalty taxes on leather-capped shoes imported from Vietnam for two years regardless of opposition from many EU member countries.

In October 2008, when the deadline came, the EC, instead of removing the penalties, decided to conduct a term-end check in accordance with the European shoe makers’ proposals. Notably, the check was made in the context of opposition from a majority of EU member countries, Vinh said.

According to him, EU taxes on Vietnam’s leather-capped shoes have negatively impacted the country’s industry. “We must say that the industry is suffering a double hit as the EC has recently stricken the country’s footwear from the list of those benefiting from the Generalised System of Preferences (GSP).”

The reality also showed, Vinh said, that the imposition of the penalty over the past three years has not protected the interests of the small number of less competitive EU shoe makers it was intended to help, but has caused harm to the legitimate interests of EU investors in Vietnam’s shoe industry, as well as importers, distributors and retailers in the EU markets, and EU consumers.

In addition, the anti-dumping case also ran counter to the EU community’s policy to support trade liberalisation and prevent the return of the protectionism, particularly the abuse of trade obstacles such as anti-dumping measures, and to continue assistance programmes to under-developed and developing countries, including Vietnam. In conclusion, Vinh said, his ministry requested that the EC reconsider the report and remove the anti-dumping taxes when the term-end check is finished.

The Vietnamese government wishes to solicit further support from EU member countries in urging the EC to put an end to the anti-dumping tax.