Posted on 11 Nov 2011
Viet Nam Steel Association has asked the Ministry of Finance to consider imposing a 10-per-cent import tariff on cold-rolled stainless steel products to protect domestic production. The present tax is zero.
Last year, about 140,000 tonnes of stainless steel were imported from mainland China and Taiwan. They were sold for much less than domestic product.
The association said the total capacity of domestic cold-rolled steel and stainless-steel pipe manufacturers in Viet Nam had reached 350,000 tonnes per year. Of this, cold-rolled stainless-steel products accounted for 90 per cent.
The association argued that with such production capacity, Viet Nam could meet domestic needs for cold-rolled stainless steel.
Posco VST Ltd company, the main manufacturer of cold-rolled stainless steel in Viet Nam, said it had to compete fiercely with imported steel which was exempt from import tariffs.
The Philippines, Indonesia and Thailand have applied import tariffs at between 3-7.5 per cent. Viet Nam is the only regional nation offering tax exemption.
Posco VST Ltd company said the industry was at risk being forced out of business due to the great pressure from imports.
The company said raising import duties on stainless steel was essential to protect domestic production.
