Illustrative Image (Source: VNA) Hanoi (VNA) – With growth of up to 22 percent forecast thisyear and firms with bright prospects, Vietnam’s steel industry has highpotential to reach many markets if it overcomes difficulties in trade defencelawsuits and high import volume.
According to the Vietnam Steel Association (VSA), in 2017, the sectorfaced 30 trade defence lawsuits from other countries, many of which have continuedinto 2018.
By March 2018, Vietnam had exported 446,000 tonnes steel products for321 million USD, up 38 percent in volume and 63 percent in value compared tothe same period last year.
Vietnamese steel’s quality has met the demand of choosy markets such asthe US, Australia and Europe, rising to top position in regional and worldmarkets.
However, in the first months of 2018, Vietnam imported 1.2 milliontonnes of steel worth 808 million USD, a drop of 5 percent in volume and anincrease of 22 percent in value.
VSA Vice President Nguyen Van Sua held that despite a fall in imports anda rise in exports, the import volume of imported steels remained high.
Sua said the Vietnamese steel industry is still dependent on imports asdomestic production process has yet to be synchronised, along with low capacityin producing steel for mechanical manufacturing. Domestic firms are unable toproduce many material products such as hot-rolled steel and steel billet, thusmaking production slow and expensive, he added.
With the recent market recovery and extensive economic integration,especially the signing of the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) and the upcoming singing of the free tradeagreement between Vietnam and the EU, the Vietnamese steel sector can expandmarkets, making the growth target of more than 20 percent feasible.
But the fact is when Vietnam increases exports, import markets willstrengthen trade defence measures.
Tran Tuan Duong, General Director of Hoa Phat Group said that Vietnamesefirms should maintain the domestic market, while abiding by free tradeagreements’ regulations and working with countries when lawsuits occur.
“Market protection solutions are not enough. Businesses themselvesshould enhance their competitiveness and grasp all opportunities fordevelopment,” Duong stressed.
A representative from the Vietnam Steel Corporation asserted thatobstacles facing exports mostly come from trade barriers and defence measuresfrom importing countries. The representative underscored the need for moreeffective market forecast and flexible production.
Despite a lack of capacity and experience, Vietnamese firms can still fighttrade defence in the context of integration, the representative said.
Meanwhile, the VSA highlighted the need for cooperation with countrieswhen trade defence problems arise, along with the development of professionalteams to deal with investigation and data gathering.-VNA
VNA
