In recent times, the Vietnamese steel industry has been affected by the protectionist policies of the steel industry in some countries around the world , leading to difficulties in finding export markets. Most recently, on June 3, 2025, US President Donald Trump officially signed an executive order raising the import tax on steel and aluminum to 50% (except for products originating from the UK), which is double the previous rate of 25%. The new tax rate officially takes effect from June 4, 2025.
The order is aimed at protecting US industries from cheap foreign steel and aluminum, which the US government sees as undermining domestic steel production.
The new US tariff policy has affected the production and business activities of steel manufacturing enterprises in Vietnam. Among them, Hung Nghiep Formosa Ha Tinh Iron and Steel Company Limited (FHS) - the locomotive of Ha Tinh industry - has also been affected.
FHS is the largest integrated steel mill in Vietnam with finished products being hot rolled coils, wire rolled coils and raw billets.
Since the US officially imposed a 50% import tax on steel and aluminum products, businesses have continued to proactively review existing trade contracts with US partners to assess the level of risk, thereby implementing production and business strategies in line with reality.
To reduce the impact from the US market, FHS has also proactively adapted by promoting competitive advantages, seeking to expand new potential export markets, and focusing on the domestic market as the Government is promoting public investment, building bridges, roads, ports, and airports, contributing to the strong increase in demand for aluminum and steel.
Mr. Tran Anh Duong - Field Manager at the Port Department (FHS) said: To increase export output in the context of the US imposing high import tariffs on aluminum and steel, the company has considered gradually reducing export output to the US market and targeting new markets.
Accordingly, FHS has signed contracts and exported to countries such as: UK, Russia, Italy, Japan, Korea, India, Thailand, Indonesia... with output from 3,500 - 9,000 tons of steel/trip. In addition, FHS promotes steel consumption in the domestic market, exporting to ports of Hai Phong, Dung Quat, Phu My, Saigon... with output from 8,000 - 10,000 tons/trip. FHS's main export items are steel coils, steel wire, steel billets and steel plates; domestic consumption items are mainly steel coils and steel wire.
Trade tensions, global economic recession and steel industry protection policies of countries around the world have affected FHS's operations. According to data from the Ha Tinh Department of Industry and Trade, in the first 5 months of 2025, FHS produced over 1,583 tons of semi-finished stainless steel (down about 6.51% compared to the same period in 2024); steel and steel billet export turnover reached over 510 million USD (down about 41.1% compared to the same period in 2024).
To cope with tariffs from countries around the world, FHS continues to synchronously and flexibly deploy solutions, focusing on reducing production costs, lowering product prices, and increasing competitiveness in the market. In addition to the export market, FHS continues to develop strategies to increase domestic market share to 60% in the period of 2025 - 2026 (currently the domestic market is about 40%). FHS's goal is to maintain a stable production - business chain, ensuring regular jobs for more than 5,700 officers and employees of the company.
According to FHS representative, in the coming time, the company will continue to invest in a specialized steel industrial park, add steel wire product structure to the project; adjust the operational function of Son Duong port, implement phase 1-2 to increase the capacity of the iron and steel complex to 15 million tons/year...
Sharing the difficulties of FHS, Ha Tinh will continue to accompany and support the company in the process of operating and expanding the project, creating favorable conditions for the company to operate effectively.
Mr. Nguyen Dinh Binh - Deputy Head of Vung Ang Port Customs said: "Currently, there are nearly 50 enterprises opening customs declarations through the unit, of which FHS is the main enterprise, contributing to more than 80% of import-export turnover and accounting for 80% of the province's import-export tax.
As of June 10, 2025, FHS has paid import and export taxes of more than VND 2,260 billion. In the coming time, we will continue to strengthen exchanges and grasp information about FHS's difficulties and problems to have timely support solutions; guide businesses to implement 100% of electronic customs procedures, and pay taxes 24/7 via the online system."
According to Mr. Vo Ta Nghia - Deputy Director of Ha Tinh Department of Industry and Trade, currently, the industry and trade sector continues to strengthen information collection to have solutions to support businesses participating in import and export in the area, especially supporting FHS with solutions to respond to trade protection measures of the US and some other countries.
In the coming time, the Department of Industry and Trade will continue to organize a survey team to work on a number of issues related to production, export and logistics services to develop a report assessing the implementation of export development policies and logistics services in the province for the period 2021-2025. From there, it will serve the development of trade and logistics development policies in the province for the period 2026-2030. This is also an important content to support import-export enterprises, including FHS, in the period facing many challenges.
Source: https://baohatinh.vn/fomosa-ha-tinh-lam-gi-khi-my-tang-thue-nhap-khau-nhom-thep-len-50-post289791.html
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