Vietnam's steel industry is still too dependent on imports
Vietnam's steel industry is still too dependent on imports
Vietnam's steel industry is still too dependent on imports
It is forecasted to have a production growth of about 20-22% this year, along with the strong rise of many names such as Hoa Phat, Hoa Sen, Vietnam Steel Corporation, Ton Dong A..., steel Vietnam has the potential to go to many markets around the world.
Production of galvanized steel sheet at Hoa Sen Hoang Mai corrugated iron factory (Nghe An).
(Photo: Thanh Tung/VNA)
However, according to experts, the steel industry is facing many difficulties such as trade remedy lawsuits, and imports are still high. According to a report by the Vietnam Steel Association, in 2017, the steel industry has faced 30 foreign trade remedy lawsuits; in which, many cases have been extended to 2018. These cases include anti-dumping of cold-rolled stainless steel, anti-dumping of galvanized steel, anti-dumping of H-shaped steel and more recently the case commercial safeguards with billet, long steel and colored corrugated iron, etc.
According to data to March 2018 of the Vietnam Steel Association, finished steel exports reached more than 446,000 tons, with a turnover of 321 million USD, up 38% in volume and 63% in value over the same period of 2017.
Besides, Vietnam's steel quality also meets the standards of fastidious markets such as the US, Australia, Europe... and gradually has a certain position in the regional and world steel market.
However, in just the first few months of 2018, Vietnam imported steel of all kinds 1.2 million tons, with a total turnover of more than 808 million USD, down 5% in volume, but up 22% in value.
Mr. Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association, said that although steel imports decreased, export sales increased thanks to Vietnam's active implementation of trade safeguard measures in a timely manner. But it can be seen that many imported products are still very large, such as color coated steel, hot rolled coil ...
Mr. Sua explained that Vietnam's steel industry is still too dependent on imports because the domestic production process is not synchronized, and the mechanical steel production capacity is almost nonexistent. At the same time, many input materials such as hot rolled steel coil, billet, etc. have not yet been able to self-produce. That leads to imports, slowing down the production process as well as increasing the cost burden.
With the recovery of the construction market and deeper integration, especially the recently signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); The EU-Vietnam Free Trade Agreement (EVFTA), which is expected to be signed this year, will be an opportunity for Vietnamese steel to reach out to new markets and boldly set a goal of continuing to grow by more than 20% this year. now.
However, it is a fact that when Vietnam boosts exports, importing countries will strengthen defense measures even in ASEAN countries such as Malaysia, Thailand, Indonesia... and most recently, the US.
However, with the efforts of businesses, associations, and state agencies, Vietnam has applied relatively effective trade remedy tools.
According to Mr. Tran Tuan Duong, General Director of Hoa Phat Group, first of all, businesses need to maintain the domestic market. Then with export, each steel industry enterprise needs to comply with Free Trade Agreements, actively cooperate with other countries if anti-dumping lawsuits occur in order to avoid losing the market or being taxed high.
“The market protection solution is necessary but not enough. Enterprises themselves must improve their competitiveness and take advantage of every opportunity to develop,” said Mr. Duong.
Ton Dong A is one of the experienced enterprises in dealing with trade remedy lawsuits.
A representative of Ton Dong A Joint Stock Company said that Ton Dong A has export markets to the US, Europe, Australia, and ASEAN, but currently tariff and non-tariff barriers are a challenge.
Therefore, in production, it is necessary to use high-quality raw materials from grade 1 factories, prepare all documents - evidence including input materials, production process, output products... . At the same time, develop standard working procedures and record keeping, closely coordinate with associations and businesses in the industry, actively cooperate with investigative agencies… to get the best results. in market protection.
According to a representative of the Vietnam Steel Corporation (VnSteel), exports face difficulties due to barriers and trade remedies from other countries. Therefore, the Corporation will continue to improve the efficiency of production and business by strengthening market analysis and forecasting, organizing production and business flexibly, in line with market developments.
With a lot of self-defense tools that Vietnam has effectively implemented in the past time, it can be seen that Vietnamese steel enterprises in general are not strong enough and experienced enough, but still have the ability to fight defensively in the future. integration context.
According to the Vietnam Steel Association, it is important for businesses when being applied by a foreign agency to trade remedies to have a spirit of cooperation, perseverance, and not avoid it. If avoided, the agency in charge of foreign defense will be entitled to apply immediately for non-cooperation.
In addition, enterprises also need to build a professional team to be ready in the process of investigation and standardization of data, not only for foreign investigation agencies but also for themselves. industry when requesting the Competition Administration Department to apply trade remedies to protect the production of their industry.