Steel production at Hòa Phát Steel Company in Hải Dương Province. — VNA/VNS Photo Danh Lam

HÀ NỘI — The US’ imposition of duties of up to 456 per cent on certain steel products shipped from Việt Nam would not significantly harm the country’s steel industry, according to industry insiders.

The US Department of Commerce (DOC) early this week issued a final order slapping duties of up to 456 per cent on steel products produced in Republic of Korea (RoK) and Taiwan, shipped to Việt Nam for minor processing then exported to the US.

The DOC said in a statement that corrosion-resistant steel products (CORE) and cold-rolled steel (CR) processed in Việt Nam using steel of Korean or Taiwanese origin had circumvented US duties.

According to the Trade Remedies Authority of Việt Nam, a duty of up to 456 per cent would be applied on CR and CORE of unclear origin.

The duties for CR and CORE using steel from RoK were 24.2 per cent and 29.4 per cent, respectively and 10.34 per cent for CR using steel from Taiwan.

According to the DOC’s statement, shipments of CORE from Việt Nam to the US increased 4,353 per cent from US$23 million between April 2012 and December 2015 (when preliminary duties were imposed on South Korean and Taiwanese products) to $1.1 billion from January 2016 to September 2019.

Shipments of CR rose 922 per cent from $49 million between January 2013 and February 2016 (when preliminary duties were imposed on South Korean and Taiwanese products) to $498 million between March 2016 and April 2019.

However, industry insiders and market researchers said they foresaw little negative impact from the move on the Vietnamese steel industry.

SSI Securities Corporation said the US’ tax imposition would not have significant impacts on Việt Nam’s steel producers because most anticipated risks from the US’ trade defence measures and had worked to diversify their export markets.

ACB Securities said Việt Nam’s steel export to the US only accounted for 2 per cent of the country’s total steel export value. Thus, the duties would not seriously affect Việt Nam’s steel export revenue but would affect certain domestic steel producers.

Nguyễn Văn Sưa from the Việt Nam Steel Association was also nonplussed by the move.

Sưa said that facing duty imposition was not a new thing for Việt Nam’s steel industry, thus, many firms had prepared for this by diversifying export markets and selecting raw materials originated from countries which were not subjected to duties.

For example, Hòa Phát Group had been working to reduce reliance on the import of raw materials for its production, especially with the Hòa Phát Dung Quất Iron and Steel Complex, according to Nguyễn Mạnh Tuấn, general director of Hòa Phát Steel Pipe Company Jsc.

According to Phạm Châu Giang, deputy director of the Việt Nam Trade Remedies Authority under the Ministry of Industry and Trade, many Vietnamese steel producers were working with the US in certifying their product origins. Generally, the US’ duty imposition would not have a significant impact.

Giang said the ministry would continue to work with the industry association and trade counsellors to provide information at the request of the US investigation agency to ensure Vietnamese products enjoy fair treatment.

The Ministry of Industry and Trade also urged steel producers to use raw materials produced domestically or from countries not subjected to the duties.

According to the Việt Nam Steel Association, Việt Nam’s export of CORE and CR to the US hit $260 million in January-October.

The US accounted for 6.5 per cent of Việt Nam’s steel export volume. ASEAN was the country’s largest export market, accounting for 65 per cent. — VNS