Posted on 30 Jul 2024
Appropriate and timely trade measures, following Vietnamese and World Trade Organisation (WTO) regulations, will help the domestic steel industry minimise damage caused by unfair competition practices and protect local production, say industry leaders and experts.
Earlier, the Trade Defence Department, under the Industry and Trade Ministry, said it had received the detailed request for an anti-dumping investigation on hot-rolled steel originating from China.
The documents have been put under review by the ministry before a decision can be made on whether to proceed with the investigation.
Domestic steel makers said employing the right tools can help reduce difficulties and unfair competition and maintain production in the domestic industry.
They claimed during the first six months of 2024, more than 5.9 million tonnes of hot rolled coils (HRC) were imported into Vietnam, an increase of 32% compared with the same period last year and 1.7 times the total local industry’s output.
Of the figure, HRC of Chinese origin accounted for nearly 74%, with the average unit prices ranging from US$41 to US$133 per tonne lower than those of other import markets.
Trade defence measures including anti-dumping and anti-subsidy regulations are tools the WTO allows member states to use in protecting their domestic industries.
Countries have the right to increase import taxes or apply certain import restrictions without violating WTO commitments or free-trade agreements if it is determined that the increase in imports is causing or threatening to cause harm to the domestic industry.
Given the unprecedented difficult situation faced by the domestic steel industry, still in recovery after a bad year and the slow property market, the use of trade defence measures could provide domestic steel makers a lifeline, said Dr Hoang Ngoc Thuan from the Foreign Trade University.
“If we apply trade defence measures at the right time, promptly, proactively and following the law, it will help domestic enterprises reduce competitive pressure from imported goods and avoid threats from unfair competition.”
Defence measures have been proven to be effective in the past. In 2017, Vietnam imposed an anti-dumping tax of 38.34% on galvanised steel products imported from China and South Korea.
After just a year of the tax, imports decreased from 19 million tonnes in 2016 to 15 million tonnes in 2017.
Last month, the ministry said it had started an investigation into the dumping of galvanised steel products from China and South Korea again after domestic makers reported alleged dumping activities.
Pham Chi Cuong, a former president of the Vietnam Steel Association said in 2017, partly thanks to import taxes, the domestic galvanised steel industry developed rapidly, not only meeting domestic demand but also exporting to over 30 markets.
Source:The Star
