Higher steel import tax sought

The Viet Nam Steel Association (VSA) has written to the ministries of finance and industry-trade proposing raising import tax on imported pipe steel to 10% and on galvanized steel sheets up to 12%. The present tax for imported pipe steel is 5% and galvanized steel sheet is 7%.

“The tax hikes will help to protect domestic steel producers from the rapid increase of steel imports from other countries, especially from China which has called off the export tax for some steel products to 0% since last month,” said Pham Chi Cuong, chairman of VSA.

Cuong said local steel manufacturers had been recovering as demand and prices had slightly inched up.

However, he stressed the domestic steel industry could be badly affected if more low-priced steel products from other countries made their way into Vietnam.

The Government earlier raised the tax on imports of steel products to 12% from the previous level of 8%, and the tariff on steel ingot imports to 5% from the previous 2% as a measure to protect the steel producers from grinding to a halt.

According to the association’s chairman, the current steel stockpiles total some 200,000 tons. Many steel producers have also increased steel ingot imports for their production since late year and the volume of steel ingots in stock amounts to about 500,000 tons which is enough for steel production in nearly two months.

The present factory price of steel products without value added tax quoted by some steel producers is around VND11.7 million a ton, up slightly from late last year.

The association also predicted the local consumption of steel products this year will not be higher than last year.

According to the Ministry of Industry and Trade, steel product demand this year is forecast to reach around 10.5 million tons, the same as last year. (SGT)