Pressure steel industry trade defense

However, the door opened wider integration, not only bring many opportunities for Vietnamese steel enterprises, but also poses many challenges.

Because the commodity import tariffs to 0%, the competitive pressure of extremely large businesses, along with the challenges coming from the trade defense measures from the export market. 
Nguyen Van Sua, Vice President of Vietnam Steel Association said that, despite good growth in recent years, but Vietnam still has to import large quantities of raw materials and semi-finished products for production service. Especially for Vietnam goods surplus production capability as billet import still more than 1.1 million tons, accounting for 12.6% market share nationwide embryos.

Total imports / exports of the steel industry in 2016 was 9.1 / 2.4 billion. Thus, the steel industry are very large deficit to cater for production needs.

According to the recent report of the Vietnam Steel Association, imports of steel products in the first quarter reached more than 3.56 million tons, with imports reaching $ 2.2 billion, up 13% in volume and 64% in imports. Although steel has reduced imports over the same period thanks to the impact of trade defense measures in time.

But imports of some commodities has increased over the same period, such as steel than 84,000 tons PPGI, up 40%; shaped steel rod than 141,000 tons, up 113%; CR coil nearly 160,000 tons, an increase of 158% ... Also, imports of welded steel pipe, steel wire, galvanized Others, stainless steel ... also increased.

On many steel products imports increased sharply in recent times as long steel, billet ... MOIT issued consecutive temporary safeguard measures to protect domestic production enterprises. After the temporary safeguard measures, the Ministry of Trade has adopted formal safeguard measures against this item.

Nguyen Van Sua said, exports and consumption of domestic steel enterprises will continue to experience difficulty in 2017. Previously, if Vietnam mainly steel exports to the ASEAN market, but since 2016, Vietnam steel redirect exports to the US market and the current steel export to this market accounted for nearly 27% of total steel exports with goods mainly galvanized steel sheet.

Meanwhile, the US is investigating tax evasion case against the Vietnam, related to suspected Chinese steel cheap "disguised" Vietnam to export goods to the US.

He explained Sua, Vietnam steel industry is still too dependent on imports due to domestic production processes are not synchronized, the production capacity of steel mechanical almost no; multiple products simultaneously input materials as hot rolled coil, billet ... still not produce themselves; leads to imported you, slow down the production process as well as increase the cost burden.

Also, not to mention a large amount of commercial fraud steel, alloy steel guise has not been thoroughly treated.

Obviously, along with the recovery of the construction market, the integration of deeper, Vietnam's steel industry will have the opportunity to bring our products to the country and that is the reason for the steel industry aims to continue to increase growth in the coming period.

However, the fact is that when Vietnam boost exports, the importing country will strengthen protective measures. Even the ASEAN countries such as Malaysia, Thailand, Indonesia ... have repeatedly facilitate trade defense Vietnam in 2016.

According to the Advisory Council on trade defense - Chamber of Commerce and Industry of Vietnam, through December 7/2016, alone among nearly 100 anti-dumping cases, the Vietnamese steel industry had "sticky "to about 20 cases.

Representatives leadership Vietnam Steel Corporation (VNSteel) said exports increasingly difficult due to face barriers, trade defense from the water. Therefore, the Corporation will continue to improve the efficiency of production and business by increasing market forecast analysis, organization of production and business flexibility, consistent with the evolution of the market.

Song VNSteel also suggested the Government policies and measures to control and prevent the spread of imported goods which the domestic steel industry has produced; prevent the massive imports from China cheap steel, anti-commercial fraud, causing damage to the domestic manufacturers.

SeAH Steel Co., Ltd Vietnam known as the famous steel pipe production in many markets such as the US, Japan and Australia. Before this risk, SeAH leaders said that boosting exports will contribute to increase consumption of products and reduce inventory.

However, to do this, steel companies have focused on techniques to increase productivity, reduce costs and improve quality to increase competitiveness. Besides, the domestic steel enterprises have trade promotion efforts, promote their products in new markets such as the US, Africa, Middle East ...

Temporary export can be a solution to help businesses release of goods while the domestic market is still difficult, but after all, in the long term the domestic market is still the core decision. The enterprises investing and improving quality will reduce consumption criteria, reduce production costs through business process closed, thereby increasing the competitiveness of products.

Nguyen Van Sua also said that in recent years, VSA has actively participated in comments on the draft Circular regulation of energy consumption rate in the steel industry of the Ministry of Industry and Trade; proposals on the Decree 38/2015 / ND-CP and Circular No. 41/2015 / TT-BTNMT to remove difficulties for enterprises to import scrap steel for production of ...

VSA has the same unit members proposed the government initiated an investigation and the application of trade defense measures to protect domestic producers and long steel billet, galvanized; for galvanized and cold sheet imports from China and Korea ...

Vietnam business forces though not strong enough and experienced, but still capable of defense struggle in the context of integration.

It is important that enterprises when foreign agencies apply trade defense measures to have a spirit of cooperation, perseverance, not avoided. If avoided, the agency in charge of foreign defense will be entitled to apply as soon as we uncooperative.

Besides, enterprises also need to build professional team to be ready in the investigation process, standardization of data, not only for the investigation agencies abroad but also good service for the enterprise now proposing Competition Management Department application of trade defense measures to protect its manufacturing sector ... /.

(Bnews 17/4/2017)