Ministry of Industry and Trade investigates Chinese steel suspected of evading anti-dumping tax

The Ministry of Industry and Trade is investigating the evasion of trade defense measures against hot-rolled steel coils (HRC) with a width of over 1,880mm to under 2,300mm imported from China.

Steel imported to Hai Phong port area is stored in customs inspection and supervision locations according to regulations - Photo: CAM GIANG

The decision was issued on October 27 with a maximum investigation period of 9 months .

According to the Ministry of Industry and Trade , the goal of the investigation is to clarify the possibility that businesses are taking advantage of size differences to evade anti-dumping taxes, ensuring fair competition and protecting the domestic steel industry.

Under current regulations, HRC steel with a width of less than 1,880mm is subject to a tax of 23.58 - 27.83%, while "wide width" above this threshold is not taxed.

This means that if the steel has a width that "exceeds the barrier" by a few millimeters, the importing enterprise can completely avoid the anti-dumping tax.

According to industry insiders, the volume of imported wide-size HRC steel is currently 1-2 million VND cheaper than domestically produced steel, causing domestic manufacturing enterprises to suffer.

Although this type of steel is legal on paper and meets production standards, due to the specific size when imported, its proper and effective use requires machinery with significant design in terms of function, distribution channel or customer.

In essence, this is still a taxable product but it "escaped" the fence legally thanks to... a few millimeters.

Faced with that situation, two enterprises Hoa Phat Dung Quat and Formosa Ha Tinh sent documents requesting investigation of tax evasion behavior from June 2025. After three additional times, on September 18, the Department of Trade Defense confirmed that the documents were valid and qualified to open an investigation.

HRC steel production - the foundation for many key industries

HRC steel is not only a basic material for the metallurgical industry but also plays a fundamental role in a series of key industries such as mechanical engineering, shipbuilding, automobile manufacturing, containers, galvanized iron, steel pipes...

According to a steel company in Ho Chi Minh City, if the domestic market is not protected from dumping foreign steel, Vietnam will lose the opportunity to be self-sufficient in input materials, a vital factor for developing the defense industry and downstream industries. At that time, the dream of industrialization will only depend on foreign supply chains.

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Source: https://tuoitre.vn/bo-cong-thuong-dieu-tra-thep-trung-quoc-bi-nghi-lan-tranh-thue-chong-ban-pha-gia-20251029101643491.htm