Vietnam’s steel sheet maker denies dumping allegations

02/04/2013 12:00 - 471 Views

PETALING JAYA: Vietnam’s largest steel sheet producer has denied claims that the company has been dumping its products in Malaysia.

HoaSen Group chairman Le Phuoc Vu said he had received early this year communication from the Malaysian Steel Association accusing it of dumping practices.

“Let me put on record that we offer superior quality products at reasonable price and that is the reason for us making successful inroads into export markets. We follow strictly all regulations of the World Trade Organisation.

“Therefore, the allegation made by the Malaysians is without basis,” he told The Malaysian Reserve in an interview in Ho Chi Minh City.

HoaSen, which reported revenue of US$180 million (RM556.2 million) for its financial year ended Sept 30, 2012, had derived 4% of its revenue from exports to Malaysia. It is the largest steel sheet exporter in Asean and has been listed on the Vietnam Stock Exchange since 2001. The company holds a 41% of the market share in Vietnam.

Last month, the Ministry of International Trade and Industry (MITI) announced the imposition of anti-dumping duty of 25.2% on steel wire rods (SWR) imported from Taiwan, China, South Korea and Indonesia. However, six manufactures from China, South Korea and Indonesia were exempted.

The move came about following investigations by the ministry.

It was branded as a “mafia” strategy by Malaysian companies which rely on cheap imported SWR. Following closely that development, local steel coaters are said to be planning a petition to the government seeking protection from the dumping of cheap coated steel, with industry players saying that much of the dumping comes from South Korea, China and Vietnam.

Biggest culprit

Malaysia Iron and Steel Industry Federation president SohThian Lai said the steel coaters are preparing their submission to the government and are in the process of gathering information before submitting their petition, according to a recent KiniBiz report.

On Saturday, HoaSen commisioned its fourth galvanising line in Vung Tau city, some 60km from Ho Chi Minh.

The line costing US$20 million will enable the company to increase its production by 120,000 tonnes a year.

The company has also inked an agreement on licensing and usage of trademark with Assava Metal Co Ltd and BK Metal Sheet Ltd of Thailand to build a steel sheet plant in Thailand at an estimated cost of US$30 million.

“I would like to invite officials from MITI and the steel association to visit us and look at our manufacturing practices to see that we do not practise dumping. We have international auditors to ensure that everything is above board,” said Le.

He alleged that China is the “biggest culprit” for dumping its steel products in the region.

The Chinese steel makers compete on prices and not on quality and the practice of dumping its steel products in the region is widespread, said Le.

Le also alleged that Chinese steel products did not meet international standards of steel thickness.

On the company’s future plans, Le said it is looking at the markets in Africa, northern America and southern America.

He also said more opportunities would emerge in Asean post the integration of the Asean Economic Community 2015 as capital flow and movement of people in the region become easier.

He predicted Asean would be the most dynamic growth region in the world in the next 10 years.

The growth may propel merger and acquisition opportunities in the region’s steel sector and HoaSen is well positioned to tap into this growth, he said.

April 1, 2013

By Ranjit Singh

Source: freemalaysiatoday.com