(VOVworld) – The Ministry of Industry and Trade has imposed anti-dumping duties on cold-rolled stainless steel imports from China, Malaysia, Indonesia, and Taiwan (China) since October 5. The tariffs range from 3.07% to 37.29%. This is the first time Vietnam has levied anti-dumping duties on stainless steel imports to protect domestic producers since Vietnam opened its market to the world.

 

Vietnam has imposed anti-dumping duty on cold-rolled stainless steel from China, Malaysia, Indonesia, and Chinese Taiwan since Oct 5.

Stainless steel is used to produce household utensils, kitchenware, and automotive equipment. In 2013, Posco VST and Hoa Binh Inox asked the Vietnam Competition Authority (VCA) of the Ministry of Industry and Trade to investigate the dumping of stainless steel imports from China, Malaysia, Indonesia, and Taiwan (China) causing heavy losses for Vietnamese producers. After a year-long investigation and cooperation with a third country to compare prices, the VCA concluded that enterprises from China, Malaysia, Indonesia, and Taiwan exported their products to Vietnam at very low prices to unfairly compete with Vietnamese producers.

Vietnam’s anti-dumping duty on stainless steel imports matches international standard

Posco VST and Hoa Binh Inox are capable of producing 370,000 tons of stainless steel, 80% of the domestic market. Vietnamese producers can easily meet the local demand of 400,000 tons annually. In fact, Vietnamese stainless steel companies do not operate at their designed capacity because they have to compete with a large quantity of low-price imported steel from China, Malaysia, Indonesia, and Taiwan. The Ministry of Industry and Trade’s anti-dumping decision is in line with WTO regulations to protect the legitimate rights of local producers. Since joining the WTO in 2007, Vietnam has faced nearly 100 anti-dumping investigations from other countries. This is the first time Vietnam has levied an anti-dumping duty on imports. Ho Nghia Dung, President of the Vietnam Steel Association, said the decision is precise, careful, and conform with international standards. “This is a necessary move in line with international practice to protect the local stainless steel industry. We need appropriate tariff policies to encourage domestic production and foreign investment. Healthy competition is necessary but we need to initiate anti-dumping duties if imported products are sold at a very low price.”

Levying anti-dumping tariff to ensure fair competition

The anti-dumping tariff imposed by Vietnam’s Ministry of Industry and Trade is not high compared to the international average. In some recent cases elsewhere in the world, anti-dumping tariffs range from 20% to 30%, or even 100%. VCA representative Pham Chau Giang said the anti-dumping decision protects domestic production but above all ensures fair competition between domestic products and dumped imports. “Dumping is when a country intentionally exports their products to Vietnam at a low price which is even lower than in its original market. Anti-dumping investigations and tariffs aim to guarantee fair competition. Many countries export stainless steel to Vietnam but the anti-dumping duty is imposed on 4 countries and territories. Vietnamese companies still can import stainless steel from countries which are not on the anti-dumping duty list.”

Stainless steel is one of three import products initiated for anti-dumping duty in Vietnam. Under free trade agreements, anti-dumping lawsuit is considered a legal and effective tool that companies and sectors can use to protect their local market.