Protection for the steel industry is


Steel enterprises are faced with the continued encroachment of foreign steel was in their home.



Foreign steel "override" the internal steel


In fact, spin dependent embryonic material from foreign ores are difficult math of the steel industry in Vietnam. Reality from the past 10 years, the domestic steel industry has made strides despite the years too, the rate of imported steel is superior.

Although the construction of many steel mills but the rate may be more localized. Import turnover still stands in second place more than 10 million tons, worth over $ 1 billion. Looking at the chart of the steel industry many paradoxes exist. Although it has been identified as a key industry and enjoy more protection policy for that specific production in the form of tariffs. But clearly that is just pure protection from the State, while the specific requirements, commitment to manufacturing companies in the country, almost no. Domestic steel is constantly falling into the pumpkin, being forced from dependence to be inserted material from the finished product.

From March 31-12, the application of automatic import licenses for certain steel products to protect domestic steel industry will officially expire. This is detrimental to the domestic steel firms may be active when the source of embryos, steel production costs are often higher than foreign steel prices 500 - 700 thousand per ton.

According to economic experts, to look forward to building a steel industry has outlined, the tax incentives for domestic enterprises is necessary. But on the other hand, toward the enterprise must also have certain commitments to the development process or otherwise committed in the rate of localization in each of their products. Unable to state, again demanding to see hard solutions.


Please continue to remain protected


Pham Chi Cuong, Chairman of Steel Association said two weeks ago, the Ministry of Industry and Commerce has sent documents to the Association on the poll: to this day 31-12, the application of import licensing Steel shall automatically expire opinion of the Association on this issue like? Mr Cuong said that the current domestic production capacity for key products such as construction steel (rolled steel, steel bar), steel pipes, galvanized steel religion, religious colored, cold rolled coil capacity production has doubled demand. Therefore forced to seek export.


In 2010, calculate this item had also exported $ 1.3 billion with a volume of 1 million tons. However, while the economy remains highly volatile, the price of electricity, coal, steel demand growth is still required to keep the steel prices will make difficult. "The check, to see what alarm, what to many must speak up on behalf of the business. Steel is one of four products is a strong brand of Vietnam, should continue to be protected. "

Pham Chi Cuong explained, are imported steel to $ 600 per ton. While interbank rates are USD 19,500 dong per dollar, the market price is 21,500 VND per USD. Every ton of steel enterprises imported for manufacturing has lost 1.2 million. But, despite that still suffered losses as if the domestic steel prices, steel imports flooding will enlist.


Last time, the firms remain competitive with imported steel is the brand, the product has a clear origin, but rose again if the domestic steel will lose a competitive advantage over imported steel. The domestic steel producers have to be very careful when they decide to increase the price, otherwise will facilitate low-cost foreign steel dominate the market.