Igeon Industry Imposes Provisional Anti-Dumping Duties on Vietnamese Plywood... "Domestic Manufacturers' Price Competitiveness Increased"

[Asia Economy Reporter Yoo Hyun-seok] Igeon Industry is expected to expand its domestic market share following the decision to impose tariffs on competing Vietnamese plywood.

The Ministry of Economy and Finance announced on the 29th that it has decided to impose provisional anti-dumping duties on Vietnamese plywood. According to this decision, companies such as SAVI, Thanh Hung, and Junma Phu Tho from Vietnam will be subject to provisional anti-dumping duty rates ranging from 9.18% to 10.65%.

The provisional tariff period will last for four months, until September 28 of this year. If the Korea Trade Commission’s investigation results confirm the anti-dumping duties, the tariffs may continue for a longer period.

The Ministry of Economy and Finance explained that the imposition of tariffs is due to the significant damage caused to the domestic industry by Vietnamese imported plywood entering the market below normal prices. Domestic plywood industry stakeholders, including Igeon Industry, have long complained about the damage caused by the low-priced offensive of foreign plywood.

On the 16th of last month, the Trade Commission also stated, “The investigation results from 2016 to the first half of 2019 showed that the increase in Vietnamese plywood imports caused damage such as a decrease in domestic companies’ market share and employment.”

Igeon Industry produces lumber and veneer through overseas forestry projects to manufacture flooring and plywood. A representative from Igeon Industry said, “Low-priced Vietnamese plywood has grown to occupy nearly half of the domestic market share, threatening the domestic industry.”

He added, “Not only is the domestic plywood industry suffering damage, but the indiscriminate distribution of low-quality, low-priced Vietnamese plywood has continuously caused safety accidents at construction sites. We expect that this tariff imposition will lead to increased use of plywood with assured quality rather than just price at construction sites, which will help prevent safety accidents.”