In a decisive move to protect its domestic wind tower manufacturing industry, the Ministry of Industry and Trade in Vietnam has announced the imposition of a significant anti-dumping tariff of 97% on the import of wind towers from China. This is the conclusion of an exhaustive 15-month probe that had been conducted following a complaint lodged by local manufacturers who alleged substantial injury on the local firms due to the floodgates of Chinese-made towers sold at unfairly low prices. The tariff shall start 15 days from signing and last for five years, setting a very sharp stance against what the government has viewed as unfair practices in trade.
The investigation begun in September 2023 confirmed that Chinese enterprises were conducting dumping practices, selling the wind towers at prices which are below their fair market value. According to a statement from the trade ministry, evidence proved that practice caused massive damage to domestic manufacturing sectors in Vietnam. The imported Chinese wind towers eroded the competitive edge of Vietnamese manufacturers by undercutting local producers, which put financial strain on them and exposed the industry to a risk of not being sustainable.
Domestic producers in Vietnam are capable of manufacturing high-quality wind towers that meet global standards, and many have the potential to compete internationally, the trade ministry emphasized. This underscores the necessity to protect local industries for long-term sustainability and further promote them in the burgeoning renewable energy space. Wind energy is increasingly becoming a significant area of focus for Vietnam, especially as it continues to make efforts toward the use of cleaner sources of energy for its own sustainability purposes. Protecting its home-grown manufacturing base is imperative to achieve this goal.
The anti-dumping measures will cover almost all the Chinese wind tower manufacturers except one. Jiangsu Zhenjiang New Energy Equipment Co Ltd, a Chinese company, has been exempted from the tariff as no evidence of dumping was found by the company during the assessment period. This exemption again reflects the trade ministry’s careful approach to the investigation, ensuring that only those who are involved in unfair practices are penalized.
The imposition of the tariff is Vietnam’s move towards ensuring equal ground for its industries and also safeguarding them from any harmful effects brought about by unfair competition. In the implementation of these measures, the government will be looking to provide an environment more level for the local manufacturer to thrive in and for the development of the economy of the country.
The anti-dumping tariff is expected to reshape the dynamics of the wind tower market in Vietnam, potentially encouraging local producers to ramp up production and enhance their competitiveness. On the other hand, the decision sends a strong message to international players about the country’s readiness to defend its industries against trade malpractices.
Protection of wind tower manufacturing in Vietnam will now become an important factor with more investments in renewable energy projects in order to meet both growing energy needs and environment-related commitments. This measure protects local businesses while advancing the overall goal of having a resilient and self-sufficient green energy sector.