The U.S. Department of Commerce (DOC) has issued its preliminary determination in the countervailing duty (CVD) investigation into hardwood plywood and decorative plywood imported from Vietnam, China, and Indonesia — a case involving hundreds of millions of dollars in annual trade value.
The investigation was initiated following a petition filed by the U.S. Hardwood Plywood Fair Trade Coalition, alleging that exporters from the three countries benefited from government subsidies and engaged in unfair trade practices.
Scope and Trade Impact
The products under investigation include hardwood plywood and decorative plywood, widely used in furniture, cabinetry, and interior construction.
According to data submitted by the petitioners, Vietnam’s exports of the investigated products to the U.S. reached approximately:
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USD 401 million (2022)
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USD 186 million (2023)
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USD 244 million (2024)
With these figures, Vietnam ranked second among the three investigated countries, behind Indonesia.
Notably, the petition named nearly 100 Vietnamese companies, accusing them of receiving subsidies and selling at unfair prices.
Preliminary Duty Rates: Vietnam vs. China and Indonesia
Following its investigation, the DOC selected two Vietnamese exporters as mandatory respondents. Based on preliminary findings:
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Vietnamese mandatory respondents: 4.37% – 26.75%
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All other Vietnamese exporters: 15.56% (uniform rate)
By comparison:
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China: 81.34%
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Indonesia: ranging from 2.4% to as high as 128.66%
Overall, Vietnam’s preliminary duty levels are significantly lower than China’s, reinforcing the view that Vietnamese producers face comparatively lower subsidy-related exposure in this case.
No Retroactive Duties Applied
A key concern during the investigation was whether the U.S. would apply retroactive duties (critical circumstances), which would have imposed tariffs on shipments imported prior to the preliminary ruling.
Petitioners claimed imports from Vietnam surged shortly after the case was filed. However, after analyzing monthly import data:
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DOC found no evidence of a sudden or massive import increase
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Import volumes before and after the filing period remained stable
As a result, no retroactive duties will be applied to Vietnamese exports — a significant relief for exporters and U.S. buyers alike.
What This Means for Vietnamese Exporters
While the outcome is not risk-free, the preliminary results send several important signals:
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Vietnam remains less exposed than China in U.S. trade remedy actions
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Compliance, documentation, and transparency matter more than ever
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Exporters with clear sourcing, cost structures, and governance are better positioned to manage trade risk
At the same time, the case highlights growing scrutiny on subsidies, origin, and pricing behavior, especially for wood-based products entering the U.S. market.
Looking Ahead
Final determinations are still pending, and duty rates may change. However, the current findings reflect a broader global trend: 👉 Trade defense measures are becoming a permanent feature of international furniture and wood-product trade.
For Vietnamese manufacturers, the path forward lies in:
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Strengthening compliance and traceability
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Avoiding aggressive price competition
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Investing in value-added products and sustainable operations
The plywood case serves as a reminder that market access today depends not only on cost, but on credibility.
Learn more about Misamex’s knowledge in Vietnam:
m. (+84) 902 944 134 | e. xnyder@misamex.vn | w. https://misamex.vn/
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