Minimal impact from Viet Nam's anti-dumping duties on Malaysian glass

Malaysian exporters are expected to face minimal impact from Viet Nam's temporary anti-dumping duties on colourless float glass, according to the Malaysia-Viet Nam Chamber of Commerce (MVCC).

Viet Nam will impose temporary anti-dumping duties of 41.07 per cent to 63.39 per cent on colourless float glass from Malaysia, the former's industry ministry said in a statement.

The measures, effective from Feb 13 for 120 days, come after a preliminary investigation found that Malaysian products contributed to "significant and evident" harm.

The ministry cited rapidly rising import volumes and aims to prevent what it called "serious and irreparable" damage to local producers, while continuing to gather information for the next phase of the investigation.

MVCC secretary-general James Tan said the move reflects Viet Nam's right to protect its domestic producers but urged a broader perspective.

In 2024, Malaysia exported US$11.74 billion worth of goods to Viet Nam, while imports from Viet Nam totalled US$6.40 billion, giving Malaysia a trade surplus of about US$5.34 billion.

"On the surface, this is anti-dumping. But beneath it, there are deeper currents. A significant portion of Malaysia's upstream float glass production is influenced by Chinese companies.

"These players are highly efficient and competitive, and their exports to Viet Nam may have influenced this measure," he told Business Times.

Regarding the potential impact on Malaysian exports, Tan noted that the duties will primarily affect specific companies, particularly those with Chinese ties, rather than the Malaysian economy as a whole.

"Malaysia's overall trade and technological base is diverse. Losing some trade in this particular sector may affect jobs in certain companies, but Malaysia remains strong and competitive," he said.

Tan noted that the case could serve as a precedent for Asean trade defence measures.

He said Viet Nam is adopting a 'Go Global' strategy and examining tariffs closely to protect its industries.

"Other countries in the region may take note, but Malaysia's broad industrial base ensures it can remain competitive," he added.

Source: KLSE Screener