Malaysia has initiated an anti-dumping investigation into Vietnamese Biaxially Oriented Polypropylene (BOPP) – a kind of packaging film used in food processing, said a state agency under the Ministry of Industry and Trade.
The investigation, which focuses on the time span from January 1 to December 3 last year, will also look into other kinds of BOPP imported from Taiwan, Thailand, China and Indonesia, said the Vietnam Competition Agency.
The plaintiff, San Miguel Yamamura Plastic Films Sdn, said the Malaysian BOPP industry has suffered serious economic damage from foreign dumping activities.
The VCA has recommended that related local enterprises should actively coordinate with the Malaysian investigation teams to avoid any negative conclusion that may bring about a disadvantage for the domestic BOPP industry.
Early last week, Vietnamese galvanized and color-coated steel sheet manufacturers were warned by the Malaysian Iron and Steel Industry Federation (MISIF) about a possible lawsuit.
“The local industry here has witnessed a worrisome influx of coated steel products into Malaysia from Vietnam,” Thoi Bao Kinh Te Sai Gon newspaper quoted Pham Chi Cuong, chairman of the Vietnam Steel Association, as relaying the thoughts of MISIF President Dato’ Soh Thian Lai.
“Related companies in Malaysia have regarded this as the dumping of such materials by Vietnam into Malaysia, and that they have been severely affected by this development.”
In a letter sent to VSA, Dato’ Soh Thian Lai asked the association to monitor and undertake necessary actions to address the influx of coated steel products, Thoi Bao Kinh Te Sai Gon newspaper reported.
Otherwise, the affected Malaysian companies would resort to initiating trade remedial measures such as anti-dumping actions against Vietnamese firms.
Previously, the US warned against Vietnamese steel pipe exports, but local firms only made gradual adjustments.
Eventually, the US initiated a lawsuit against local steel pipes.
In early 2012, Thailand also raised concern over the vast volume of Vietnamese cold-rolled steel exported to the country.
Three ASEAN nations, namely Indonesia, Thailand and Malaysia, are applying more complicated tariff mechanisms and procedures to discourage those exporting steel products to these countries, Cuong told Thoi Bao Kinh Te Sai Gon.
“Specifically, exporters must submit the product origins, so that the authorities can check the quality and technology processes, and then decide to import or not. It would take 2-3 months to get permission to export steel to these countries,” said the chairman.
“VSA has proposed similar methods to the Ministry of Industry and Trade to prevent cheap steel products from overflowing into Vietnam,” he added.