Steel: Fun - sad with trade defense

PVTM - should not shy away

 

Mr. Ho Nghia Dung, chairman of Vietnam Steel Association:

 

"The adoption of measures PVTM is true, should not shy away, because the country has a lot of events in Vietnam steel items. But commercial litigation would cause a conflict of interest between producers in the Association. Association respect the opinions of the company and will report to the State agencies is different for state agencies to consider ".

 

Summary of Vietnam Steel Association showed that in 2015 the steel industry witnessed growth in all aspects, from production, consumption and import volume. According to the Vietnam Steel Association, with the production of steel products reached nearly 15 million tons in 2015, the last year steel production growth of 21.5% compared with 2014. The consumption sector increases more impressive, at 26% compared to 2014 when the country had consumed nearly 17.9 million tonnes (including steel imports). There warming is partly due to the real estate market recovery has a major impact on the growth of the steel industry.

However, in general, the steel industry has gone through a lot of tough 2015 as he struggled with lawsuits PVTM from export markets and also to witness the arrival of a large volume of steel imports into Vietnam Male. With 12 PVTM lawsuit in 2015, the steel companies have "dismayed" to follow the event, though the value of exports compared with imports still too modest with about $ 2 billion / US $ 9 billion in NK afternoon. Volume, Vietnam also exported over 2.8 million tons of steel / steel imports more than 13 million tonnes, slightly higher than the level of 2014.

 

Entering 2016, together with the wide open export markets, Vietnam's steel industry has more opportunity to export their products to the country and that is the reason for the steel industry boldly aims to grow 15% next year. However, according to Nguyen Phuong Nam, Deputy Director of Competition Administration (QLCT), Ministry of Industry and Trade, a label threat money is when we boost exports, these countries found that the risk of imports of goods imported from Vietnam threaten their country's manufacturing industry, they will also promote measures PVTM and meanwhile, a huge risk that the goods will not be our exports to these countries. Even with the Asean market, cites the fact that countries like Malaysia, Thailand, Indonesia .. has repeatedly Vietnam PVTM event, Mr. Nam evaluation although established Economic Community AEC but this is one community economic co relatively "loose" and "fuzzy", not form the mechanisms and the framework agreement, particularly issues formed the commitments taking measures PVTM together. Warning about the economic slowdown in neighboring China with huge inventories of steel, very close to Vietnam, while Vietnam is weak and lax in applying rules PVTM, Nguyen Phuong Nam stressed, 2016 could be a very difficult year, if not careful we "could die at home and exports die".

 

The risk of measures PVTM from abroad, Mr Nam said, "we have a law, our forces are not yet strong enough and experienced but have the ability to fight", and recommend the DN XK steel industry when foreign agencies apply measures PVTM, must have a high spirit of cooperation, perseverance, not be avoided. If avoided, the agency responsible PVTM will be entitled to apply as soon as we uncooperative. Need to build a professional team ready to cope with the investigating authorities, standardization of data, not only for the foreign investigation agencies, but also to serve us well for the proposed Department QLCT PVTM apply measures to protect its manufacturing industry.

 

Concerns from PVTM

 

Suggestions by representatives of steel companies VCAD initiative PVTM event not without basis, especially with the steel industry, by the industry in 2015 is the year of hardships because of cheap steel imports "raging" do not headache at DN. According to Mr. Ho Nghia Dung, chairman of Vietnam Steel Association, noteworthy than 13 million tons of steel in 2015, imports of goods produced in the country, not to mention there are some signs of trade fraud. Specifically, embryos were imported 1.7 million tons, an increase of 200%, while domestic production capacity of 12 million tons a year, the current output of about 6 million tons / year. 1.6 million tons of rolled steel imports, while domestic production of 1.1 million tonnes. Galvanised goods imports increased 87% ...

 

In fact, the end of 2015, attributed the spike and abnormal and long steel billet imports cause serious damage to the steel industry, the industry's four major companies have filed to VCA suggests the application self defense products and long steel billets of some countries, including China imported into Vietnam. The tax rate that the companies safeguard this interim proposal applies to billet was 45% and 33% for long products. This is the second time Vietnam actively PVTM event, so this lawsuit received the support of public opinion. However, PVTM event as "double-edged sword", by the interests of the enterprise is not unified.

 

Recently, at the review conference of the Vietnam Steel Association, representing Vietnam Steel Corporation said Australia agreed with PVTM if the steel production plant in jeopardy (surplus product), but now the Is not suffice, many companies said they made profits, there is no reason that the catch cheap materials enterprises have imported at high prices, while domestic billet purchase difficult. Australia Reviews Steel Vietnam received sympathy from Pomina Steel Company. Representing Vietnam Steel Australia stated evidence, DN 5 years of HPG just bought less than 50 thousand tons of Joint Venture Mineral and Metallurgy Vietnam - China - VTM (Lao Cai) is 100 thousand tons of steel . Most recent continuous Australian Steel Vietnam asked for, but no goods VTM. Not to mention, "just move information PVTM, market steel prices rose from 6.5 million / ton to 7.2 million / ton," His business was forced to raise prices, so people Consumers suffering, while previously they were being bought for equality.

 

According to the company, these measures are necessary PVTM and legitimate, but should apply to when and how the DN Steel Association and should discuss to have unity, for the sake of this DN Photo entitled to the benefit of other businesses. In the long run businesses need to reduce costs, improve capacity, by PVTM limited to a certain time period.