return icon Vietnamnet.vn

Doors to export markets narrow for steel manufacturers

It has become more difficult to export steel products to large markets amid the strong rise of protectionism. Steel manufacturers have been advised to protect and exploit the domestic market, which is full of potential.
VietNamNet Bridge - It has become more difficult to export steel products to large markets amid the strong rise of protectionism. Steel manufacturers have been advised to protect and exploit the domestic market, which is full of potential.


{keywords}

It is now more difficult to export steel



The pressure on Vietnamese steel exporters is getting stiff. Soon after the US began imposing high tax rates on steel and aluminum imports from some countries, including Vietnam, the EU announced it would levy tax on 23 products imported to the market.

As such, the ‘tariff wall’ has been reinforced by the EU, which fears that steel manufacturers, meeting barriers in the US market, will shift to export products to the EU and put local manufacturers at a disadvantage.

The US now consumes 15 percent of Vietnam’s steel exports, and the EU more than 10 percent. About 60 percent of total output is exported to other Southeast Asian markets and the remaining to other markets. This means that the closure of the EU and US markets would have significant impact on Vietnamese manufacturers.

The US now consumes 15 percent of Vietnam’s steel exports, and the EU more than 10 percent. About 60 percent of total output is exported to other Southeast Asian markets and the remaining to other markets. This means that the closure of the EU and US markets would have significant impact on Vietnamese manufacturers.

However, these might not be the only risks. Analysts have warned that protectionism has bounced back not only in the US and Europe.

Therefore, Vietnamese enterprises need to re-set their investment directions, restructure product lines and reorganize the markets to exist in the long term.

Nguyen Van Sua, deputy chair of the Vietnam Steel Association (VSA), said in the face of the strong rise of the protectionism which will be stronger in the future, Vietnamese steel manufacturers need to improve their competitiveness by utilizing modern technologies to create high-quality products at reasonable prices.

He also emphasize the need for new markets to ease the reliance on certain markets. To offset the decline in the exports, manufacturers have been advised to preserve the domestic market at any cost.

An analyst also said the domestic market has a lot of potential. But this is a fierce battlefield as local manufacturers have to compete with imports which have been increasing.

A report showed that 1.5 million tons of galvanized and color coated iron sheet were imported to Vietnam in 2017.

However, manufacturers would find it difficult to preserve the domestic market without trade remedies that restrict imports. 

Though Vietnam’s agencies have been setting up a legal framework to protect domestic production, there are still loopholes through which imports can penetrate the domestic market.

Vietnam’s average steel consumption per capita is 200 kilograms per head per annum, a low level compared with other countries. Steel manufacturers can export 20 percent of their output, while the remaining 80 percent is consumed domestically.


RELATED NEWS

Vietnam’s steel industry faces more lawsuits

Chinese steel manufacturers flock to Vietnam to avoid US trade war


Mai Nam

MORE NEWS

HCM City faces shortage of teachers at all levels

The Ho Chi Minh City People’s Committee has held a press conference to provide information about socioeconomic issues and epidemic prevention and control in the city.

Female People's Army officer works at EU Training Mission in Africa

Of the seven officers of the Vietnam People’s Army sent by the President to international missions, Lieutenant Colonel Vu Thi Lien is the first officer performing duties at the European Union Training Mission in Central African Republic (EUTM RCA).

VIETNAM NEWS HEADLINES FEBRUARY 4/2023

Minister requests fruitful cooperation in defence industry with other countries

Vietnamese cyber users advised to be cautious about ChatGPT registration

ChatGPT has recently been so popular in various fields. Since there are limits in ChatGPT registration from Vietnam, Internet users here are warned to be careful to proceed with the process to avoid being scammed.

2-3 more submarine fiber cable routes needed for Vietnam

The Vietnam Internet Association’s (VIA) Secretary General Vu The Binh said Vietnam needs at least two or three more submarine fiber cable routes in the next five years to serve mounting demand.

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.

Banks pumped VND800 trillion into real estate in 2022

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Finance Ministry suggests taxing land and buildings separately

The Ministry of Finance has proposed developing a new property tax law to separate the tax on land from that on buildings.

Vietnamese movies earn over VND350 billion during Tet

Vietnamese-made films tallied more than VND350 billion in ticket sales in the first nine days of the Lunar New Year, between January 22 and January 30, according to the independent analytical website Box Office Vietnam.

Nguyen Trong Hieu's music video in finals of German Eurovision Song Contest

In a landmark moment for Vietnamese music, Nguyen Trong Hieu, winner of Vietnam Idol 2015, has announced that his latest music video has made it to the final eight in the German Eurovision Song Contest (ESC).

Vietnam's tourism revenue reaches VND46 trillion in January

Vietnam’s tourism industry generated around VND46 trillion in revenue this January, with a surge in domestic and international tourist numbers, according to the Vietnam National Administration of Tourism.

Vietnamese consume nearly 60 tons of gold in 2022

Vietnamese consumers bought 59.1 tons of gold, representing a year-on-year increase of 37 percent, the fastest increase in Southeast Asia, according to the World Gold Council.
back_to_top