The Ministry of Industry and Trade will continue taking trade remedies in line with regulations of the World Trade Organization (WTO) and free trade agreements to protect local steel producers from the fierce competition of imported products, according to news website Vietnamplus.

The Ministry of Industry and Trade will continue taking trade remedies to protect local steel producers from the fierce competition of imported products

The ministry will find ways to prevent tax evasion by those who use rolled construction steel for other purposes.

In addition, the ministry will ask enterprises to research local and foreign markets to draw up sound business plans, boost sales of steel products and brand promotion, reduce inventories, raise production and business, and ensure jobs for workers and adequate material for producers.

According to the Vietnam Steel Association (VSA), VSA members produced over 21.1 million tons of steel products last year, up 24.3% year-on-year. Meanwhile, steel sales grew 20.7% over last year to nearly 18 million tons.

To protect domestic steel producers, VSA will continue to coordinate with the Department of Trade Defense under the Ministry of Industry and Trade to monitor cases related to steel trade defense, said VSA vice chairman Nguyen Van Sua.

The association also encourages Vietnamese steel makers to stick with their business ethics.

VSA also reported high growth in steel import last year. As of November 30, 2017, Vietnam spent US$9.63 billion importing more than 18.2 million tons of steel, down 14% in volume but up 15% in value.

China remained Vietnam’s largest steel supplier with 47% of total steel imports. More than 6.5 million tons of steel was imported from the northern neighbor, a fall of 33% in volume but a mere 5% in value.

Meanwhile, Vietnam exported more than 4.3 million tons of steel valued at nearly US$3 billion last year, surging 33% in volume and 56% in value. ASEAN remained the biggest buyer of Vietnamese steel with over 2.4 million tons, accounting for 58.6% of the nation’s total steel exports.

It is noteworthy that construction steel exports amounted to over one million tons in 2017, soaring 62% versus the previous year. Vietnam became an exporter of steel billets last year, with more than 300,000 tons, while it imported nearly two million tons in 2015.

VSA vice chairman Sua said the local steel sector grew well last year with many plants put into operation, meeting the demand for local consumption and export.

SGT