Chinese exporters began to use loopholes in the Vietnam market

Vietnamese manufacturers began to encounter difficulties in production and business due to hard competition from Chinese steel products. Excess sentence complicates the position of the Siam Steel Vietnam Company. Internal manufacturers have come across many problems due to the presence of Chinese competitors.

Mr. Do Duy Thai, CEO of the Viet Corporation, who owns 61.7 percent of the shares in the Pomina steel company, said that 300 thousand tons of steel were imported from China with a zero interest rate on imports. There is a loophole that allows you to import steel obtained by an oxygen-converter method in Vietnam duty-free. According to him, the state should introduce a tax on imported steel products produced in this way.

Chinese imports, as experts say, seriously influenced the domestic industry, because the price of the sale of Chinese steel is now for $ 20-30 per ton cheaper than that of local manufacturers. This news favorably affected the manufacturers fences in Nizhny Novgorod who announced growing discounts on their products. Meanwhile, prices for local steel products fell.

The General Director of the Vietnamese Steel Association LE Fu Hong said that in the first half of this year, seven out of 13 corporations and five joint ventures suffered losses due to difficulties in production and business. The Association said that in the first half of 2013, sales of the local steel industry increased in the annual calculus by 6.84 percent to 5.8 million tons, including 1.4 million tons for export mainly to ASEAN countries.