Regarding this issue, the Vietnam Competition Authority of the Ministry of Industry and Trade are conducting an investigation on imported steel ingots.
In the first 2 months of 2016, the total amount of imported steel ingots from China has doubled. Meanwhile, the price has been reduced by 20%.
According to Vietnam Competition Authority, this price reduction was caused by the Renminbi devaluation. Moreover, the European market is applying Trade Remedy Investigation against Steel Products Imported from China, as Vietnam has become the main market for Chinese steel.
Nguyen Phuong Nam, Deputy Director, Vietnam Competition Authority, Ministry of Industry & Trade said: If we don’t have any effective trade remedies, this issue may weigh down the domestic steel industry.
This factory had to cut 50% of its production. 26 other domestic firms also reduced their production due to the inflow of imported products.
"It may lead to bankruptcy. If one sector needs to consider bankruptcy, we will depend on imported steel ingots", Hoang Ngoc Diep, General Director, Thai Nguyen Iron and Steel JSC.
According to the WTO, 60% of annual trade remedies throughout the world are related to the steel sector. Therefore, Vietnamese firms have been urged to learn more about trade remedies to protect domestic production.
"The Vietnam Competition Authority is willing to support enterprises in pursuing trade remedies", Nguyen Phuong Nam, Deputy Director, Vietnam Competition Authority, Ministry of Industry & Trade added.
According to the Vietnam Competition Authority, a preliminary report on trade remedies against imported steel ingots will be completed next week.
