Appropriate and timely trade measures, following Việt
Nam's and World Trade Organization's (WTO) regulations, will help the domestic
steel industry minimise damage caused by unfair competition practices and
protect local production, said industry leaders.
Hot rolled coils
(HRC) in storage at a facility in the northern province of Hà Nam. VNA/VNS
Photo |
HÀ NỘI Appropriate
and timely trade measures, following Việt Nam's and World Trade Organization
(WTO) regulations, will help the domestic steel industry minimise damage caused
by unfair competition practices and protect local production, said industry
leaders and experts.
Earlier, the trade
defence department, under the Ministry of Industry and Trade (MoIT), said it
had received the detailed request for an anti-dumping investigation on
hot-rolled steel (HRC) originating from China. The documents have been put
under review by the ministry before a decision can be made on whether to proceed
with the investigation.
Domestic steel
makers said employing the right defence tools can help reduce difficulties and
unfair competition and maintain production in the domestic industry.
They claimed
during the first six months of 2024, more than 5.9 million tonnes of hot rolled
coils (HRC) were imported into Việt Nam, an increase of 32 per cent compared to
the same period last year and 1.7 times the total local industry's output. Of
these, HRC of Chinese origin accounted for nearly 74 per cent, with the average
unit prices ranging from US$41 to $133 per tonne lower than those of other
import markets.
Trade defence
measures including anti-dumping and anti-subsidy are tools the WTO allows
member states to use in protecting their domestic industries. Countries have
the right to increase import taxes or apply certain import restrictions without
violating WTO commitments or free trade agreements (FTAs) if it is determined
that the increase in imports is causing, or threatening to cause, harm to the
domestic industry.
Given the
unprecedented difficult situation faced by the domestic steel industry, still
in recovery after a bad year and the slow property market, the use of trade
defence measures can provide domestic steel makers a lifeline, said Dr Hoàng
Ngọc Thuận from the Foreign Trade University.
"If we apply
trade defence measures at the right time, promptly, proactively and following
the law, it will help domestic enterprises reduce competitive pressure from
imported goods and avoid threats from unfair competition."
Defence measures
have been proven to be effective in the past. In 2017, the Southeast Asian
country imposed an anti-dumping tax of 38.34 per cent on galvanized steel
products imported from China and South Korea. After just a year of the tax,
imports decreased from 19 million tonnes (2016) to 15 million tonnes (2017).
Last month, the
ministry said it had started an investigation into the dumping of galvanized
steel products from China and South Korea again after domestic makers reported
alleged dumping activities.
Phạm Chí Cường, a
former president of the Vietnam Steel Association (VSA) said in 2017, partly
thanks to import taxes, the domestic galvanized steel industry developed
rapidly, not only meeting domestic demand but also exporting to over 30
markets, including high-standard markets like the US and EU.
He said failing to
implement trade defence measures can result in domestic plants, which are
extremely expensive to build, scaling down or shutting down.
As major steel
makers in the region including China, India, Japan and S Korea face excess
production, dumping pressure is unlikely to ease soon.
Meanwhile,
domestic steel makers have been struggling on the export front, facing
increasingly stringent technical and defence measures. By the end of May this
year, around 84 trade investigations by foreign authorities had been launched
against Vietnamese steel products.