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Quantifying Effects of EU Antidumping Duty on Vietnam Footwear

By Nguyen Truong Toan (VNP 18)

Supervisor: Dr. Pham Hoang Van / Dr. Nguyen Trong Hoai

Abstract

This paper examines effect of EU antidumping on Vietnam footwear firms. We find that EU AD causes a 52.8% decline of Vietnam targeted export products, at least. Besides value, there is 42.2% reduction of the least affected scenario. For the most impacted images, it leads to a fall of 105.6% and 107,1% for value and volume in five years after AD, respectively. This paper also indicates that there is no association between AD and price of Vietnam export. We find very little evidence that Vietnam footwear firm’s revenue, labor payroll and jobs have association with AD. It is only small firms decline revenue, but small firms contribute only 1.65% total revenue of footwear. And, there is no evidence that footwear firm discharge their employees because of AD. We find the explanation for this interesting phenomenon from trade diversion story. There is no evidence of product diversion of Vietnam firms to EU. But, it is strongly evident that Vietnam firms significantly diverse their markets toward U.S.

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