Under its decision dated December 19, the DOC concluded that hard capsules imported from Vietnam were sold at dumped prices and benefited from subsidies. The products subject to investigation fall under HS codes 9602.00.1040 and 9602.00.5010.

The DOC set a final countervailing duty rate of 2.45% and a final anti-dumping margin of 46.24%, after adjusting for export subsidies. As Vietnam had only one mandatory respondent in the case, the rates apply to all Vietnamese exporters.

The case was initiated in November 2024 at the request of US manufacturer Lonza Greenwood LLC, which alleged that Vietnamese producers were benefiting from subsidies and selling products at dumped prices. The petitioner cited US import data showing shipments from Vietnam worth about US$26 million in 2023, accounting for roughly 12% of total US imports of the product.

The United States also conducted parallel anti-dumping and countervailing investigations into similar products imported from Brazil, China and India. The DOC’s findings show Vietnam’s dumping margin was higher than those set for China and India but lower than Brazil’s, while Vietnam recorded the lowest subsidy margin among the countries investigated.

The US International Trade Commission is still assessing whether the imports caused material injury to the US domestic industry. A final injury determination is expected soon. If affirmative, a formal duty order could be issued as early as February 2026.

The Trade Remedies Authority of Vietnam then advised affected businesses to closely track the progress of the case and prepare suitable response strategies in the coming months.

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