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Vietnams selling under the normal value Injury

Vietnams selling under the normal value Injury

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which did not fulfill the requirements for IT as set in EUs regulation for reasons of export sales restrictions and State involvement in its internal
structure and decision-making process. As there would be a risk of circumvention were different duty rates to be applied to these thee related
companies, IT could not be granted to the former two companies.

2.3.3. Vietnams selling under the normal value

According to Article 2 of the EUs anti-dumping regulation, in case of imports from non-market economy countries and to the extent that MET could
not be granted, normal value has to be established on the basis of the price or constructed value in an analogue country. The Commission indicated its
intention to use Brazil as an appropriate analogue country for the purpose of establishing normal value for Vietnam. The three main Brazilian exporting
producers are:
- Bison Indústria de Calcados Ltda
- Calcados Azeleia SA
- H. Bettarello Curtidora e Calcados Ltda
One of the most important criteria for the selection of the analogue country are the representative domestic sales in the analogue country as
compared to exports of the product concerned originating in the non-market economy country or country concerned by the proceeding. Brazil appeared to
be the most reasonable choice in view of the representative domestic sales which were found to account for 5 or more in comparison with exports from
Le Thanh Hai - A4 - BBE - K41 47
Table 5. Average unit prices of Vietnamese products on EU market
2001 2002
2003 2004
IP Vietnam EURpair
12,5 11,8
10,5 9,8
9,7 Index: 2001=100
100 95
84 79
78 Source: Eurostat.
The above table shows the average prices of Vietnamese exports into the Community. After a comparison between normal value and export price was
made on an ex-factory basis, the European Commission came to a conclusion that Vietnamese provisional dumping margin is 64.

2.3.4. Injury

Within the Community, the product concerned is manufactured by more than 8000 producers. Around 80 of the Community production is
concentrated in Italy, Portugal, and Spain. In the table below are presented certain indicators provided by Italy, Spain, Portugal, France, Poland and
Greece which demonstrate that the sector has been facing serious negative development.
Table 6. Macro indicators provided by the national federations of the complainants
2001 2002
2003 2002
IP Production 000
pairs 538 910
446 917 408 559
370 143 349 222
Le Thanh Hai - A4 - BBE - K41 48
Index 2001=100 100
83 76
69 65
Employment 238 018
226 126 215 426
201 174 194 579
Index 2001=100 100
95 91
85 82
Number of companies
10 728 10 684
10 447 10 044
9 579
Index 2001=100 100
100 97
94 89
Source: Official Journal of the European Union
Production of footwear with uppers of leather in the above mentioned Member States declined by 35 during the period considered. During the
same period, more than 1000 companies were forced to close down. This represented more than 43 000 job losses; a decrease of 20 of employment in
2001. The decline of number of companies was especially marked during the IP, a period which significantly overlaps with the year 2005. This indicates an
acceleration of bankruptcies during the first quarter of 2005.
An injury analysis was carried out, the injury indicators have been established at two levels: the macro-economic elements were assessed at the
level of the entire Community industry; the micro-economic elements for the individual companies. Macro-economic indicators

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Vietnams selling under the normal value Injury

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