Vietnam to raise import duties on steel to protect local makers

19/12/2008 12:00 - 692 Views

Tuoi Tre reported that Vietnam ministry of finance has decided to raise the import tariffs on finished steel from 8% to 12% from December 21st 2008 to restrain imports, following a request from Vietnam Steel Association. The ministry also increased the import tax on steel billet from 2% to 5%.

In November 2008, VSA had proposed that the government hike the tariffs to protect domestic steel makers from cheaper imports.

Mr Pham Chi Cuong chairman of VSA said that manufacturers in neighboring countries lowered prices and pushed exports to reduce stocks that had piled up as a result of falling demand in markets hit by the global economic slowdown.

Earlier this month, local steel producers raised prices by VND 200,000 to VND 300,000 a tonne. The retail price is now around VND 12.5 million a tonne.

Domestic steel consumption in 2008 is estimated at about 3 million tonnes, a 14% YoY decrease.

16 Dec, 2008

Source: steelprices-india.com