Vietnam considers to impose import taxes to protect domestic HRC producers

Vietnam considers imposing tariffs on imported steel products to protect domestic steel producers. Firstly, steel abroad is relatively cheap. Second, the additional capacity by 2020 could make the oversupply situation worse.

Vietnam is one of the few Asian countries that has not yet established trade barriers on imported hot rolled coils (HRC). Market participants said that Formosa Ha Tinh and Hoaf Phat Steel Group, two of Vietnam’s largest hot-rolled coil manufacturers, have lobbied the Vietnamese government to apply protective tariffs on with HRC.

On the other hand, steel consumers oppose the proposal of self-defense tax. They worry that the policy will lead to increased production costs. And they also claim that at least half of domestic HRC demand depends on imports.