Steel enterprises in the country ... "for help"

This is considered a "golden opportunity" for imported steel products flooding into Vietnam. Song is "anxiety" of the domestic steel companies.

Years ago, when foreign steel is imported into Vietnam to rise immediately, steel companies in the country "for help" to the Government, Ministry of Industry and Trade and the Vietnam Steel Association (VSA) to intervene, when the increase of import tax, import duties fell as steel ... to be able to cope with foreign steel.

But according to the schedule commitments for WTO accession, in 2010, the amount of steel from the ASEAN countries and China are imported into Vietnam for at least 1% tax reduction for each item so the amount of steel imports on the rise. This situation is detrimental to domestic steel companies when not active in embryonic sources, steel production costs are often higher than foreign steel prices 500 - 700 thousand per ton.

According to Nguyen Tien Nghi - Vice President of VSA, steel production capacity in the country nearly doubled over whether the new demand of about 70% using the design capacity (not including the projects under construction). As in 2010, the company expected domestic steel production to reach about 8 million tons, while demand is only about 5.6 million tons. Thus, the domestic steel companies will have to just face the surplus steel, just to share the market with foreign steel. Meanwhile, the export of steel in the country are facing major difficulties due to the regional countries are strictly controlled the import of steel.

VSA said that, upon the recommendation of the Association for the protection of domestic companies, on 25/05/2010 Ministry of Industry and Trade issued Circular No. 22/2010/TT-BCT (Circular 22) on the application paper automatic import licenses for certain steel products such as construction steel, cold rolled steel products in the country is already excess capacity compared to demand. In addition, its products of iron or non-alloy steel flat-rolled, width 600mm or more, cold rolled, not clad, plated or coated, iron or non-alloy steel, bars and rods ... will have to perform automatic import licenses to the industry can accurate statistics on the number and types of imports.

Dated 27/07/2010, Ministry of Industry and Trade issued Circular continue to replenish some items 31/2010/TT-BCT application for automatic import licenses are stipulated in Circular 22 for some products steel such as steel pipes, galvanized metal and paint colors ... However, it seems that the introduction of the two circulars on not promote efficiency. Because in reality, the amount of steel imports this year is not reduced but increased compared with 2009, reaching an average 45 thousand tons per month.

In the 11 months of the year, steel imports reached $ 249 million. Therefore, the Ministry of Industry and Commerce has requested VSA organizations consulted on whether to continue to apply this second circular in 2011 to control imports and protection of steel in some water. However, upon the recommendation of the VSA, the Ministry of Industry and Commerce should continue to apply for import licenses automatically for some steel products, while enhancing, testing, tighter controls, including surface steel wires, non alloy hot rolled coils are not rolling HS 7213 (iron or non-alloy steel, bars and rods, coils are not rolling, hot-rolled). VSA said that this will not only reduce difficulties for domestic steel companies but also reduce the trade deficit with the goals set by the Government.

However, the fact that the only policy making as a solution to the situation, to help overcome difficulties ahead for the domestic steel industry. To sustainable development, the steel industry must be proactive early material, to reduce the disparity in cost compared to imported steel products, and increase exports.