Posted on 30 Oct 2008
The finance ministry has scrapped the 5 percent export duty on non-alloy iron and steel with effect from November 7 to help domestic manufacturers clear their mounting stockpiles.
Steel firms said earlier they cannot sell their stockpile of one million tons of steel billets and steel products worth roughly US$1 billion due to falling demand at home, according to the Vietnam Steel Association.
Demand plunged 40 percent in September, the association said. Demand froze this year after the central bank raised interest rates to fight inflation, making it hard for construction and property firms to get bank loans
The ministry had halved steel export tax twice over the past month, from 20 percent to 10 percent and then to 5 percent.
