Protect domestic businesses
Recently, the Vietnam Steel Association (VSA) has sent a document requesting the Ministry of Industry and Trade to promptly resolve the trade defense case against galvanized steel products imported from China and South Korea (AD19 case).
Since the end of anti-dumping measures on galvanized steel (AD02 case) in May 2022, the amount of galvanized steel imported from China to Vietnam has increased sharply, accounting for 64 - 67% of total imports in the period 2022 - 2023. According to VSA, this has been negatively affecting the domestic galvanized steel production industry, reducing the competitiveness of domestic enterprises.
Faced with this situation, on June 14, 2024, the Ministry of Industry and Trade initiated an anti-dumping investigation into galvanized steel imported from China and South Korea (case AD19). However, to date, the case has not yet reached an official conclusion, while Chinese galvanized steel continues to flood the Vietnamese market with increasing output.
VSA believes that this has increased the cost of producing galvanized steel, reduced competitiveness and created inconsistencies in trade defense policies for different types of products. The consequences of this could affect the entire value chain of the Vietnamese steel industry.
In the context of the domestic steel industry facing fierce competitive pressure, on February 21, 2025, the Ministry of Industry and Trade issued Decision No. 460/QD-BCT applying temporary anti-dumping measures on some hot-rolled steel products originating from India and China (AD20 case).
Accordingly, the temporary anti-dumping tax rate applied to organizations and individuals producing and exporting goods originating from China is from 19.38% to 27.83%. For organizations and individuals producing and exporting goods originating from India, the temporary anti-dumping tax rate is not applied because the import rate is insignificant, less than 3%, satisfying the conditions specified in Clause 3, Article 78 of the Law on Foreign Trade Management No. 05/2017/QH14. This Decision will take effect after 15 days of promulgation.
Accordingly, the temporary anti-dumping tax takes effect 15 days after the date of issuance of the decision. The application period is 120 days from the effective date (except in cases of extension, change, or cancellation according to legal regulations).
Strong growth expected
Vietnam Steel Corporation (Vnsteel) said that in the context of increasingly volatile global trade, the US decision to impose an additional 10% tax on steel imported from China not only affects the Chinese steel industry but also has a profound impact on many countries, including Vietnam.
Vietnam's steel industry in 2025 has a lot of potential for development, but also faces many challenges. Seizing opportunities and overcoming challenges will determine the industry's success in the future.
Some Vietnamese steel products can take advantage of this opportunity to boost exports to the US thanks to the advantage of lower tax rates than China. Steel manufacturing enterprises with clear certificates of origin will have the opportunity to gain market share in the US.
Vietnam may have to "take action on its own" to increase production capacity, reduce production costs and improve product quality to compete with supply from China. The government should soon apply measures to control Chinese steel imports by imposing safeguard tariffs to create conditions for domestic steel enterprises to grow steadily.
Vietnam is still in the process of urbanization and infrastructure development, which is driving the demand for construction steel. Major projects such as high-speed railways, seaports, and new urban areas will be the main drivers. Vietnam's steel industry is expected to maintain a stable growth rate of about 5-7% per year, thanks to domestic demand and exports.
Regarding the domestic market outlook, the public investment industry outlook report of MB Securities (MBS) said that the construction and construction materials industry is expected to benefit from the trend of increasing public investment, with businesses such as sand, construction stone (20%), steel (25%), asphalt (15%) and cement (15%) benefiting from strong growth in demand.
"In the context of construction steel consumption expected to grow strongly this year thanks to two main growth drivers coming from real estate supply and public investment disbursement. Furthermore, we forecast that steel prices may improve by about 7% in 2025 due to the pressure from Chinese steel cooling down" - MBS analysis team informed.
Source: https://kinhtedothi.vn/nganh-thep-viet-nam-voi-nhieu-co-hoi-but-pha.html
Comment (0)