Da Nang Rubber JSC's tyre factory. (Photo drc.com.vn) Hanoi (VNS/VNA) - Local companies do not have to worry about apreliminary anti-subsidy tariff imposed by the US Department of Commerce on carand truck tyres from Vietnam, executives told local media.
Earlierthis month, the US agency determined exporters and producers from Vietnam wouldreceive a tariff ranging from 6.23 percent to 10.08 percent with concerns Vietnammight have undervalued its currency to support exporters.
Thedecision was made after the US agency had launched an investigation into tyreimports from the Republic of Korea, Taiwan, Thailand and Vietnam in June.
Therates imposed by the US Department of Commerce are 6.23 percent for Sailun (Vietnam)Co Ltd, 10.08 percent for Kumho Tires (Vietnam) Co Ltd and 6.77 percent forother companies. Kumho Tires and Sailun are from the RoK and China.
Butaccording to SSI Securities Research Centre, this may not have a significantimpact on Vietnamese tyre producers.
DaNang Rubber JSC is not affected by the US decision as it is applied on radialtyres, which are completely different from the firm’s outputs subject to thetariff, the company’s spokesperson told ndh.vn.
Exploringthe US market is expected to help the company improve this year’s results afterthe business community has been struggling with the global spread of thecoronavirus and the US-China trade war, the spokesperson said.
DaNang Rubber JSC posted a 12 percent on-year decline in export revenue year todate. Its key export market – Brazil – has seen a slight recovery in the lasttwo months.
In2019, the company earned 1.73 trillion VND (74.5 million USD) worth of exports,up 43 percent year-on-year and accounting for 42.9 percent of the full-yearrevenue – up 7.3 percentage points from 2018. Export revenue earned in Americancountries surged nearly 60 percent year-on-year to 1.04 trillion VND in 2019,accounting for 62 percent of the total.
GeneralDirector of the Southern Rubber Industry JSC (Casumina) Pham Hong Phu told ndh.vn that the company’s products aresubject to the decision.
“TheUS tariff is not too high so the business will not suffer from the decision.Besides, Casumina exports to 30 overseas markets, including the US,” he said.
Thecompany also produces radial tyres. Radial tyre exports accounted for 64 percentof the company’s total export revenue in 2019.
Casuminaposted a 27 percent year-on-year increase in total export revenue last year,which reached 1.72 trillion VND.
Exportrevenue accounted for 39 percent of the company’s total revenue in 2019. Thefigure rose 29 percent in four consecutive years.
Meanwhile,Sao Vang Rubber JSC sells tyres to Asian markets such as Nepal, Pakistan,Cambodia and Malaysia.
Afterthe US tariff was announced on November 4, Vietnamese tyre companies have seenmixed changes in their share prices.
Sharesof Da Nang Rubber JSC (HoSE: DRC) fell a total of 1.8 percent in the twotrading days ending November 6.
Sharesof Casumina (HoSE: CSM) declined by total 2.7 percent and Sao Vàng Rubber JSC(HoSE: SRC) gained a total of 1.8 percent in the same period./.
VNA
