Low-quality imported steel poses concerns

This has been a big concern, especially for domestic steel firms, who are facing losses of revenue and market shares; some are even thinking about closing their business.

The warehouse of this domestic steel firm is filled with inventory. Some 21 thousand items are being kept here. The company has lost 27 million USD in revenue and 4% of its market share.   



"We might have to stop production. Some production lines have been idle for months. Our output has declined and sales have decreased." - Nguyen Thanh Nghia, CEO, Dai Thien Loc Steel Company.

Cheaply priced steel imported from China is not only affecting small and medium sized enterprises but also big firms. This company has just launched its 70 million USD steel factory. However, only 50% of its total capacity is being used.

"We are new but have not yet produced to our max capactiy. This heavily affects sales." - Ho Quang Thiep, Vice CEO, Ton Phuong Nam Company.

According to the Vietnam steel association, steel imports have surged. In the first 8 months of this year, 57% of total steel sales were imports, taking 20% (more?) of the market share from domestic firms compared with 2013.

"20% is equivalent to 500 thousand tons, with an average selling price of 800 USD per ton. So the sector has lost 400 million USD. " - Vu Van Thanh, Vice CEO, Hoa Sen Group.

Experts say imported goods will continue to flow into the country as a result of global integration. Thus, domestic firms will need direction if they are to compete.