Vietnam steel not affected much by US taxation: experts

The US’s latest decision on imposing tariffs on more than 400 percent of steel imports from Vietnam is not expected to have a significant negative impact on Vietnam’s steel industry.

The US Department of Commerce (DOC) on July 2 said some CR (cold rolled) and CORE (corrosion resistant steel) products are shipped from Taiwan and South Korea to Vietnam for minor processing before being exported to the US to avoid taxes the US imposes on the two trade partners.

Vietnam steel not affected much by US taxation: experts



The US will apply measures to prevent tax avoidance by collecting cash deposits, which will depend on each import product.

According to Le Trieu Dung, director of the Trade Remedies Department of the Ministry of Industry and Trade (MOIT), the US began the probe into the case in August 2018. MOIT and the Vietnam Steel Association (VSA), together with steel manufacturers, provided information to DOC to serve the investigation.

If CR and CORE steel are made of materials from Vietnam, it will not be subject to this kind of taxation.

 

If CR and CORE steel are made of materials from Vietnam, it will not be subject to this kind of taxation.

“Prior to 2017, Vietnam had to import hot-rolled steel from other countries to use as materials to make products. However, since 2018, some steel mills in Vietnam can make these materials, therefore, the imports of the materials have decreased significantly,” Dung explained.

Nguyen Van Sua, a steel expert, also said the US taxation on some steel products won’t have a big impact on Vietnam’s steel industry.

He said a similar move was taken by the US in the past, but Vietnam was influenced for a short time only. Hot rolled steel, used as materials to make cold rolled steel and stainless steel (galvanized, color coated steel), now can be made by Formosa Ha Tinh.

From June 2017 to the end of 2017, Vietnam produced nearly 1.4 million tons of hot rolled steel. In 2018, the output was 3.4 million tons and the figure is expected to rise to 4.5 million tons in 2019.

However, Sua pointed out that hot rolled steel now can satisfy only 40-50 percent of the domestic market, while the other 50 percent must be fed by imports.

Nam Kim Steel JSC, in its 2018 annual finance report, showed that hot rolled still coil was the major material for the production of galvanized and pipe steel which accounted for 80-90 percent of Nam Kim’s input production cost. Formosa and Dung Quat now can produce hot rolled steel, but Nam Kim still has to import this kind of steel in large quantity.

“We recommend Vietnamese enterprises not use materials from Taiwan and South Korea, or their products will be levied,” Sua said.

Kim Chi 

India opens investigation into steel imports from Vietnam

India opens investigation into steel imports from Vietnam

India’s Directorate General of Trade Remedies (DGTR) has initiated an investigation on potential anti-dumping duties against imported flat rolled stainless steel products from 15 countries and territories including Vietnam.  

Trade Ministry urges use of domestic steel given steep U.S. tariffs

Trade Ministry urges use of domestic steel given steep U.S. tariffs

The Ministry of Industry and Trade has called for steelmakers to switch to using domestic materials following the US’ announcement of steep duties on steel products from Vietnam that are originally made in South Korea and Taiwan.  

 
 

Other News

.
Vietnam records lowest GDP growth rate in 30 years
Vietnam records lowest GDP growth rate in 30 years
BUSINESSicon  29/06/2020 

Vietnam’s gross domestic product (GDP) increased 1.81 percent during the first six months of 2020, the lowest first-half growth pace since 2011, according to the General Statistics Office (GSO).

Petrolimex plans stock sale, divestment of State capital
Petrolimex plans stock sale, divestment of State capital
BUSINESSicon  29/06/2020 

The Vietnam National Petroleum Group (Petrolimex) plans to sell 15 million treasury stocks in transactions held between June 16 and July 15 to mobilise capital for investment in 2020, 

It's matter of time more European investments will come to Vietnam
It's matter of time more European investments will come to Vietnam
BUSINESSicon  29/06/2020 

Representatives of European organizations explained to Hanoitimes what the future holds for Vietnam–EU business cooperation on the sidelines of the “Hanoi 2020 – Investment and Development Cooperation” conference on June 27.

Starbucks suspends social media ads over hate speech
Starbucks suspends social media ads over hate speech
BUSINESSicon  29/06/2020 

The coffee giant said it would pause advertising on some platforms in an effort to address hate speech.

Hanoi offers good opportunities for high-tech agriculture for investors
Hanoi offers good opportunities for high-tech agriculture for investors
BUSINESSicon  29/06/2020 

A number of high-tech agricultural projects have been proposed in Hanoi, a trend encouraged by the recent Hanoi investment promotion conference.

July to be a hard month for Vietnamese shares
July to be a hard month for Vietnamese shares
BUSINESSicon  29/06/2020 

July looks set to be a hard month for investors as market turbulence continues due to the unpredictability of global stocks and with attention on second-quarter earnings expectations.

M&A deals could help VN businesses restructure amid pandemic
M&A deals could help VN businesses restructure amid pandemic
BUSINESSicon  29/06/2020 

Merger and acquisition (M&A) deals will likely increase post-pandemic, which industry insiders see as a chance for enterprises to restructure their operations to be more viable.

How will mobile money affect e-wallets?
How will mobile money affect e-wallets?
BUSINESSicon  29/06/2020 

Non-cash payment activities have developed strongly in recent years with many payment services such as digital banks and e-wallets.

Vietnam lures US$6 billion FDI into industrial parks
Vietnam lures US$6 billion FDI into industrial parks
BUSINESSicon  29/06/2020 

Nearly US$6 billion in foreign direct investment was poured into Viet Nam’s industrial parks (IPs), processing zones and economic zones (Ezs) in the first half of the year, according to the Ministry of Planning and Investment (MPI).

Gia Lai to have $44m hi-tech agricultural zone
Gia Lai to have $44m hi-tech agricultural zone
BUSINESSicon  29/06/2020 

A 100-ha hi-tech agricultural zone is scheduled to be built in the central highlands province of Gia Lai to develop breeding pigs and produce organic cattle feed and fertiliser.

Vietnam seeks quality FDI from EU
Vietnam seeks quality FDI from EU
VIDEOicon  29/06/2020 

Vietnam has undergone profound changes since first opening its doors to FDI more than 30 years ago.

Vietnamese business bemoans support conditions
Vietnamese business bemoans support conditions
BUSINESSicon  29/06/2020 

Amid numerous difficulties, slow-paced implementation of government-led policies to assist enterprises hit by the health crisis are leaving many businesses in the lurch, making it hard to boost local production, a key driver of  economic growth.

Real estate booms in HCMC's suburban areas
Real estate booms in HCMC's suburban areas
BUSINESSicon  29/06/2020 

The real estate market is picking up in the areas surrounding Ho Chi Minh City as inner-city options become limited and the infrastructure of these provinces is improving.

COVID-19-induced uncertainty affects bond markets
COVID-19-induced uncertainty affects bond markets
BUSINESSicon  29/06/2020 

The COVID-19 pandemic continues to drag on local currency bond markets in emerging East Asia, including Vietnam, as investment sentiment globally and in the region wane and containment measures limit economic activity.

HCM City’s housing industry faces difficulties
HCM City’s housing industry faces difficulties
BUSINESSicon  29/06/2020 

The property industry in Ho Chi Minh City, and in fact the country in general, faces several problems that need urgent solutions, especially with regard to legal provisions.

More foreign investment inflows into Vietnam
More foreign investment inflows into Vietnam
BUSINESSicon  29/06/2020 

The Sino-American trade war together with supply chain disruptions due to the novel coronavirus pandemic has prompted many an investor to plan to relocate their production facilities in order to reduce their reliance on China. 

No licenses for transport firms with foreign holding of over 51%
No licenses for transport firms with foreign holding of over 51%
BUSINESSicon  29/06/2020 

Vietnamese transport firms wherein foreign investors contribute over 51% of the chartered capital will not be licensed, according to the Ministry of Transport.

Vietnam apparel firms won't see instant benefits from EVFTA
Vietnam apparel firms won't see instant benefits from EVFTA
BUSINESSicon  29/06/2020 

Vietnamese apparel companies will not enjoy immediate tariff cuts after the EU-Vietnam Free Trade Agreement (EVFTA) comes into effect, as they have to overcome strict rules of origin.

Vietnam slashes auto registration fee by half
Vietnam slashes auto registration fee by half
BUSINESSicon  28/06/2020 

Prime Minister Nguyen Xuan Phuc has just signed Decree 70 allowing the cut of 50% of the registration fee for customers who buy locally-produced and assembled automobiles, effective June 28.

Vietnam’s logistics industry hit hard by Covid-19 pandemic
Vietnam’s logistics industry hit hard by Covid-19 pandemic
BUSINESSicon  28/06/2020 

The Vietnamese logistics industry is among those hit the hardest by Covid-19, as the unpredictability and duration of the pandemic have presented multiple challenges in both the short and long terms, 

 
 
 
Leave your comment on an article

OR QUICK LOGIN