Vietnamese steel sector caught in US-China trade war

The vice chairman of the Vietnam Steel Association said the country was suspected of transiting Chinese steel for export abroad.

To counter this, the US Department of Commerce imposed a 199.76% anti-dumping tax and a special consumption tax of 260.44% on Vietnamese cold rolled coils allegedly produced in China after they concluded that such products were avoiding the US anti-dumping tax. on Chinese products.

A spokesman for Viet Capital Securities commented that with the launch of many production lines, domestic steel firms can prove the origin of their products to avoid anti-dumping taxes.

Vietnam's Ministry of Industry and Trade predicts that the steel sector will maintain nearly 20 percent annual growth this year, including construction steel (10 percent), cold rolled coils (5 percent), welded steel pipes (15 percent), galvanized sheet metal ( 12 percent). Hot rolled steel coils are expected to experience the strongest growth at 154 percent.

To combat this, Vietnam adopted defensive measures by imposing a 10-30 percent anti-dumping tax on Chinese steel.

Domestic firms are investing in technological advances, improving managerial capacity to improve competitiveness and learn from international practice.

This year, Hoa Sen Corporation plans to commission a 350,000 tonne cold rolled, galvanized and painted sheet steel production line, while Tung Ho will launch a line capable of producing 600,000 tonnes of structural steel.

Hoa Phаt Corporation will start a rolling mill project with a capacity of about 600,000 tons in August and build a kiln in the central province of Quang Ngai, which is expected to open in 2019 and will eventually output three million tons of steel sheets and coils each year. Tran Đình Long, chairman of Hoa Phat Corporation, said that for the first time a Vietnamese firm was able to produce hot rolled coils.

In recent years, despite satisfying domestic steel demand, China has taken steps to ship steel to Vietnam, ranging from price cuts to export incentives. Sometimes Chinese steel is 20-30 percent cheaper than Vietnamese products.


The state is going to continue its defensive measures and ensure that the rolls used in construction projects are taxed accordingly.

Statistics from Vietnam's customs showed that the country exported $ 3.15 billion in iron and steel last year, an increase of 36 percent in volume and 55 percent over 2016.

Chinese steel imports also fell from 60 percent of the total.