return icon Vietnamnet.vn

US duties on steel shipped from VN to have little impact: experts

The US’ imposition of duties of up to 456 percent on certain steel products shipped from Vietnam would not significantly harm the country’s steel industry, according to industry insiders.

{keywords}
 

The US Department of Commerce (DOC) early this week issued a final order slapping duties of up to 456 percent on steel products produced in the Republic of Korea (RoK) and Taiwan, shipped to Vietnam for minor processing then exported to the US.

The DOC said in a statement that corrosion-resistant steel products (CORE) and cold-rolled steel (CR) processed in Vietnam using steel of Korean or Taiwanese origin had circumvented US duties.

According to the Trade Remedies Authority of Vietnam, a duty of up to 456 percent would be applied on CR and CORE of unclear origin.

The duties for CR and CORE using steel from the RoK were 24.2 percent and 29.4 percent, respectively and 10.34 percent for CR using steel from Taiwan.

According to the DOC’s statement, shipments of CORE from Vietnam to the US increased 4,353 percent from 23 million USD between April 2012 and December 2015 (when preliminary duties were imposed on Korean and Taiwanese products) to 1.1 billion USD from January 2016 to September 2019.

Shipments of CR rose 922 percent from 49 million USD between January 2013 and February 2016 (when preliminary duties were imposed on Korean and Taiwanese products) to 498 million USD between March 2016 and April 2019.

However, industry insiders and market researchers said they foresaw little negative impact from the move on the Vietnamese steel industry.

SSI Securities Corporation said the US’ tax imposition would not have significant impacts on Vietnam’s steel producers because most anticipated risks from the US’ trade defence measures and had worked to diversify their export markets.

ACB Securities said Vietnam’s steel export to the US only accounted for 2 percent of the country’s total steel export value. Thus, the duties would not seriously affect Vietnam’s steel export revenue but would affect certain domestic steel producers.

Nguyen Van Sua from the Vietnam Steel Association (VSA) was also nonplussed by the move.

Sua said that facing duty imposition was not a new thing for Vietnam’s steel industry, thus, many firms had prepared for this by diversifying export markets and selecting raw materials originated from countries which were not subjected to duties.

For example, Hoa Phat Group had been working to reduce reliance on the import of raw materials for its production, especially with the Hoa Phat Dung Quat Iron and Steel Complex, according to Nguyen Manh Tuan, General Director of Hoa Phat Steel Pipe Company JSC.

According to Pham Chau Giang, Deputy Director of the Vietnam Trade Remedies Authority under the Ministry of Industry and Trade, many Vietnamese steel producers were working with the US in certifying their product origins. Generally, the US’ duty imposition would not have a significant impact.

Giang said the ministry would continue to work with the industry association and trade counsellors to provide information at the request of the US investigation agency to ensure Vietnamese products enjoy fair treatment.

The Ministry of Industry and Trade also urged steel producers to use raw materials produced domestically or from countries not subjected to the duties.

According to the Vietnam Steel Association, Vietnam’s export of CORE and CR to the US hit 260 million USD in the January-October period.

The US accounted for 6.5 percent of Vietnam’s steel export volume. ASEAN was the country’s largest export market, accounting for 65 percent./.VNA

U.S. slaps heavy duties on Vietnamese steel

U.S. slaps heavy duties on Vietnamese steel

The U.S. Department of Commerce (DOC) on December 16 announced the imposition of duties of up to 456% on corrosion-resistant and cold-rolled steel produced in Vietnam using a substrate of South Korean or Taiwanese origin.  

Former Deputy PM provided poor guidance to loss-making steel project - inspectors

Former Deputy PM provided poor guidance to loss-making steel project - inspectors

Former Deputy PM Hoang Trung Hai was found to have committed violations and shortcomings in his instructions to a long-suspended, loss-making megaproject managed by State-run Thai Nguyen Iron and Steel Corporation.

MORE NEWS

VIETNAM BUSINESS NEWS AUGUST 10

More than 100 Vietnamese and foreign firms are showcasing advanced wood processing technologies, machinery and raw materials at the 2022 Vietnam BIFA Wood exhibition which opened in southern Binh Duong province on August 8.

VIETNAM NEWS HEADLINES AUGUST 10

Localities demanded to promptly brace for storm Mulan

Industrial parks, economic zones attract US$100 billion over 30 years

Over the past 30 years, industrial parks (IP) and economic zones (EZ) across the country have attracted more than US$100 billion of investment, and created jobs for more than 4 million labourers.

Largest Vietnamese private enterprises become key driver to national economy

Although top 500 largest Vietnamese private enterprises (VPE500) represents a small part of the number of enterprises, it has greatly contributed to the operations of the private enterprise sector and the national economy, according to insiders.

Global inflation threatens Vietnamese exports

Rising global inflation occurring in several major consumer markets such as the United States, Japan, and the EU, are putting increasing pressure on Vietnamese exporters.

Minister of Public Security takes responsibility for unaccepted new passports

The Ministry of Public Security accepts responsibility for the failure of the new passport model which has not been accepted by some countries, said Minister of Public Security To Lam at the National Assembly Standing Committee's Q&A session today.

Finance Ministry transfers 35 unusual stock mark cases to investigation unit

Minister of Finance Ho Duc Phoc has responded in writing to a NA delegate of Lam Dong province on issues related to the management of capital, stock and bond markets.

Vietnam looks to draw reputable US investors: Ambassador

Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the UN, has suggested Nasdaq Inc of the US introduce reputable and experienced US investors to invest in Vietnam.

Gov’t adopts action plan to combat money laundering, terrorist financing

The Government has adopted a national action plan on combating money laundering, and financing of proliferation of weapons of mass destruction and terrorism for the 2021-2025 period.

Two die in methanol-poisoning incidents in 3 days

Two college students have died, while 11 others have remained in critical condition after drinking alcohol of unknown origin in restaurants in HCMC and Thu Duc City in the last three days.

WMO supports Vietnam, Southeast Asia to cope with floods, landslides

Vietnam and the World Meteorological Organization (WMO) signed a Memorandum of Understanding (MoU) for the Regional Center for the Southeast Asia Flash Flood Guidance System (SEAFFGS) in Geneva, Switzerland on August 8.

Tourism ministry proposes extending tax cuts for travel firms

Minister of Culture, Sports and Tourism Nguyen Van Hung has proposed the National Assembly and the Government extend the tax and fee reductions for travel firms until the end of 2023 to help them recover post pandemic.

Vingroup, S.Korean firm to supply EV battery separators

SK IE Technology, a subsidiary of South Korea’s SK Group, has cut a deal with Vingroup, to supply separators of electric vehicle (EV) battery cells to Vin Energy Solution (VinES), an arm of the Vietnamese company.

Doctors call for sanctions against rising health staff assaults

Leading doctors have said it is high time the Ministry of Health proposed the Government issues sanctions against acts of violence and assault of medical staff in hospitals.

Poor motorbike taxi driver helps disabled, elderly for free for five years

Many people think Le Minh Thien is someone who needs help but he has always believed since he was a child that he should help others.
back_to_top