The Deputy Prime Minister requested the two ministries to study the proposal regarding imported steel.

On July 24th, the Government Office sent a document to the Ministry of Industry and Trade and the Ministry of Science and Technology regarding the study of proposals to develop regulations for managing the quality of domestically produced steel and steel imported into Vietnam.

Accordingly, Deputy Prime Minister Tran Hong Ha requested the two ministries to study and resolve, within their authority, the recommendations of the Vietnam Steel Association, and report to the Prime Minister on issues beyond their authority and the results of resolving the recommendations before July 28th.

Previously, the Vietnam Steel Association (VSA) sent a document to the Prime Minister, the Ministry of Industry and Trade , and the Ministry of Science and Technology regarding the recent complex developments in the steel market.

Domestic steel producers are facing pressure from imports.

According to this association, crude steel production in the first six months is estimated at 9.033 million tons, a decrease of 20.11% compared to the same period in 2022. Consumption is estimated at 9.153 million tons, a decrease of 15.35% compared to the same period in 2022.

Overall, in the first six months of 2023, the production and consumption of finished steel products decreased by 20% and 18% respectively.

Steel exports reached $3.45 billion, a 16% decrease compared to the same period in 2022. Meanwhile, in the first five months of 2023, Vietnam imported approximately 4.6 million tons of finished steel products worth over $3.93 billion.

Vietnam imported over 220,000 tons of steel, resulting in a trade deficit of $480 million. Notably, steel imports from China to Vietnam are showing a strong upward trend again.

The association stated that countries around the world are increasingly implementing technical barriers and trade protection measures to safeguard their domestic industries. Technical barriers are clearly being applied in countries such as Thailand, Indonesia, Malaysia, South Korea, India, Australia, and the United Kingdom.

Specifically, products exported to these countries are required to have certification of compliance with the quality standards of the importing country. The goal of these permits is to prevent the import of substandard products and to strengthen control over imported steel.

Meanwhile, in Vietnam, almost all imported steel products have a 0% import tax. Furthermore, trade safeguard measures such as safeguards on steel billets have been lifted, and other steel products such as galvanized steel sheets, colored steel sheets, steel pipes, prestressed steel, etc., are not subject to any trade safeguard measures.

At the same time, steel products are not included in category 2 of goods according to the decision of the Ministry of Industry and Trade, and therefore are not subject to specialized inspection of product quality.

Therefore, the Vietnam Steel Association recommends that the Government, the Ministry of Industry and Trade, and the Ministry of Science and Technology consider developing procedures for inspecting the quality of steel imported into Vietnam. Accordingly, imported steel should have a Certificate of Compliance with Vietnamese quality standards before being imported.

In addition, strengthen investigations and apply appropriate trade defense measures to restrict unfair competition from steel products and protect the domestic steel industry.

Blocking the influx of imported goods and protecting domestic production : When tariffs are removed, many countries increase the application of technical barriers and trade protection measures. Vietnam must also consider strengthening solutions to protect domestic products.

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