|The Viet Nam Steel Association is proposing reasonable import tax rates for iron and steel products amid concerns over the effects of a possible mass inflow of imported steel from Russia.— Photo Vnexpress
HA NOI (VNS) — Domestic steel manufacturers will not be on the brink of shutting down when the free trade agreement (FTA) between Viet Nam and the Custom Union of Russia, Belarus and Kazakhstan (VCUFTA) comes into effect later this year, the Ministry of Industry and Trade stated Friday in response to widespread concern over the industry's future.
The union will only provide Viet Nam with products that are not manufactured domestically. During negotiations, the union said it would prioritise exporting industrial products to Viet Nam, such as steel, tyres and tubes, machines and equipment. Meanwhile, Viet Nam's key exports will be garments, aquatic products, leather, shoes and agricultural products.
In addition, manufacturers from the union will have to compete with major Vietnamese steel exporters.
The two sides will also implement tax cut roadmaps for specific products and will not eliminate taxes directly after the agreement takes effect.
The Viet Nam commercial affairs office in Europe expected the FTA to boost Viet Nam's exports to Russia and the Commonwealth of Independent States. — VNS