Viewing surging steel import from China; in turn hurting steelmakers in Vietnam, the Vietnamese Ministry of Industry and Trade has launched safeguard investigation. The probe is carried out to find whether Vietnam should levy higher duties on steel imports.
The investigation has been initiated in the wake of complaints filed by a group of 4 steel companies, which cumulatively account for 34.2% of the nation’s supply. The companies include Hoa Phat Steel JSC, Southern Steel Corp, Thai Nguyen Iron and Steel JSC and Vietnam Italy Steel, who have demanded to review the material injury had caused to the domestic industry between 1 Jan’12 and 30 Sept’15.
In 2012, only 468,000 MT of steel billet was imported to Vietnam, which is anticipated to rise to 1.5 MnT till this year-end, reported steelmakers in the petition sent to the VCA. In-line, steel bar import is expected to touch over 1.12 MnT in 2015 from 389,000 MT in 2012, they added further.
Such an increase of imported steel products has eaten up domestic steelmakers’ market share, in turn forcing them to curtail production due to low sales.
As per the petitioners, the tariffs should be immediately levied for 200 days, before the trade ministry releases the final conclusion of its safeguard investigation.
Currently, Vietnam slaps a zero tariff on import of steel alloyed with chromium. While, the non-alloy products are subject to a 9% tax.
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