Vietnam Keeps a 54.9 Percent Duty on Indian Polyester Yarn to 2031. It Does Not Touch Indian Fabric

What Vietnam decided

Vietnam's Ministry of Industry and Trade signed Decision 2652/QĐ-BCT on 13 October 2026, closing a sunset review it opened in October 2025. The decision extends the anti-dumping duty on polyester filament yarn from India, Indonesia, Malaysia and China for five years, from 16 October 2026 to 15 October 2031. The original measure dates from October 2021.

The measure covers the three main forms of filament yarn: partially oriented yarn (POY), textured yarn (DTY) and fully drawn yarn (FDY). The country rates are 54.90 percent for India, 21.94 percent for Indonesia and 21.45 percent for Malaysia. Chinese producers have company-specific rates, reported between about 3.4 and 17.45 percent.

According to Vietnamese reporting, the ministry found that imports from India, Indonesia and Malaysia had fallen while the duty was in force, but that dumping would likely resume if it lapsed. It also named China's large export capacity as a risk of trade being redirected into Vietnam.

Yarn, not cloth

The duty applies to yarn entering Vietnam. It does not cover woven fabric. A garment maker in Vietnam that buys finished poly-viscose suiting or shirting from India pays no anti-dumping duty under this decision. That is the most useful sentence in this post, because headlines about duties on Indian polyester are easy to misread as duties on Indian polyester cloth.

It also does not reach staple-fibre yarn. Poly-viscose suiting and shirting is usually woven from spun yarn made of cut polyester fibre blended with viscose, not from continuous filament. Filament does appear in some suiting and lining constructions, which our guide to texturised yarn in suiting explains. The decision is about yarn crossing Vietnam's border, not about what is woven in India.

What it says about the polyester market

The more useful reading is indirect. Countries keep anti-dumping duties on polyester yarn when there is more of it in Asia than buyers need. Vietnam's own finding about Chinese capacity says the same thing. We described that surplus, and the output cuts producers made in response, in our post on the polyester chain.

For a buyer of Indian fabric that is a supply fact, not a price promise. Plenty of filament yarn in the region means polyester yarn availability is not the constraint on a poly-viscose order this season. The constraints are feedstock costs, processing slots and freight. Our post on polyester and viscose fabric prices covers how those reach a quote.

What a fabric buyer should do with this

• If you buy Indian fabric into Vietnam, nothing changes. Check the HS code on your invoice: a woven fabric heading is outside this measure.
• If you are comparing fabric woven in Vietnam with fabric woven in India, remember that Vietnamese weavers pay duty on Indian, Indonesian and Malaysian filament yarn, while most Chinese yarn enters at lower company rates. The effect on a finished-fabric price is small and depends on where the weaver buys its yarn.
• Do not read this as a reason to expect cheaper Indian cloth. A yarn surplus abroad does not lower the cost of dyeing, finishing or freight, which is where most of a quote moves.