VietNamNet Bridge - In 2015, China topped the world in terms of steel output (803.8 million tons), exporting 111.6 million tons. Meanwhile, Vietnam ranked seventh in the world and the first in South East Asia in steel imports (16.3 million tons).

“The whole world is turning its back on steel from China. If Vietnam does not protect domestic products, its steel industry will die,” an expert said when asked if Vietnam should apply measures to protect Vietnamese ingot steel, long steel and galvanized sheet metal after the 200-day protection under a Ministry of Industry and Trade’s decision in March ends.

According to the Vietnam Steel Association (VSA), in the first four months of 2016 alone, Vietnam imported 6.2 million tons of steel with total import turnover reaching $2.3 billion. The import volume from China alone was 3.7 million tons, worth $1.26 billion, accounting for nearly 60 percent of total imports.

In 2015, China topped the world in terms of steel output (803.8 million tons), exporting 111.6 million tons. Meanwhile, Vietnam ranked seventh in the world and the first in South East Asia in steel imports (16.3 million tons).

While domestic steel mills struggle hard to boost sales and survive heavy losses, Vietnam spent $2.3 billion to import steel.

The expert commented that China’s steel exports have been increasing in the last six months, and that China’s steel has become a ‘global concern’.

The first working day of the 2016 SEAISI Conference & Exhibition, an important event of the regional steel industry organized by the South East Asia Iron and Steel Institute (SEAISI) in early June, was spent to discuss the import of Chinese steel and solutions to restrict Chinese imports.

An official from Malaysia said that the country’s steel mills now have to spend all of their time to protect themselves instead of focusing on their core business. 

Despite the great efforts made by SEAISI’s member countries, they still cannot prevent the wave of steel imports from China.

While ASEAN countries are still fumbling for solutions to prevent Chinese steel from entering their countries, the US has decided to impose a tax five times higher than before on Chinese cold rolled steel after accusing Chinese manufacturers of selling their products below market prices.

The European Commission in March 2016 announced that it would promote trade remedies against cheap imports from China and called on EU members to restrict imports by imposing higher taxes on dumped Chinese products.

The expert warned that as the world has installed barriers against Chinese steel products, products would flow to Vietnam if the country does not use similar barriers.

Big Vietnamese steel manufacturers such as Hoa Phat, Hoa Sen, VNSteel, Pomina, Vinakyoei and Posco still can make profits. However, state-owned enterprises have been facing big difficulties.

Tisco resumed making profits thanks to the temporary protection measure applied since March 22.


NDH