Posted on 19 Feb 2025
Despite the United States imposing a 25% tariff on imported steel and aluminium, Vietnam’s steel and aluminium exports continue to show resilience and hold promising potential for growth, according to Do Ngoc Hung, the Commercial Counsellor and Head of the Vietnam Trade Office in Washington.
He pointed out that US producers have yet to meet domestic steel demand fully, leaving room for Vietnam’s export steel and aluminium products in the market.
Many experts and businesses view the effect of these tariffs as minimal. According to the Vietnam Steel Association (VSA), the country exported approximately 12.6 million tonnes of steel in 2024, generating US$9.1bil in revenue.
This marked a 13.47% increase in volume and an 8.78% rise in value compared to the previous year.
The United States was the third-largest market for Vietnamese steel exports, accounting for 13%, followed by Asean (26%) and the European Union (23%).
The tariff’s impact on domestic steel manufacturers is considered by many experts to be negligible.
For instance, VSA highlighted that Hoa Phat Group, one of Vietnam’s major steel producers, derived only 30% of its revenue from exports, with the United States contributing just 5% to 10% in volume and 2% to 3% in revenue.
However, the imposition of tariffs may pressure profit margins for Vietnamese exporters, requiring them to adjust strategies quickly to mitigate the impact.
Companies exporting galvanised steel to the United States, such as Hoa Sen and Nam Kim, are expected to experience moderate impacts due to the tariffs. Industry expert Nguyen Van Sua said that the high tax rate of 25% is primarily aimed at protecting the US domestic steel industry, but this blanket tax applies equally to all countries, so competition remains steady.
Analyst Ngo Tri Long said: “Although the tax rate is substantial, the competitive environment for steel exports to the US market will not become more challenging”.
Vietnamese products, known for their competitive pricing, still have the potential to thrive, Ngo said.
To remain competitive, Vietnam steel and aluminium exporters may also need to focus on reducing costs and enhancing efficiency, especially in terms of pricing, Ngo added.
Source:The Star
