Resolving the “risk” for the steel industry - Part 2: Consider applying appropriate measures

As the Business Forum reported, cheap imported steel is still on the rise. It is worth noting that while the output of imported steel is always increasing, the output of domestically produced steel is decreasing day by day, thereby reducing the competitiveness of many steel enterprises in the market.

Given the above situation, if there are no timely intervention and defense measures, it is likely that the domestic steel market share will be completely dominated by foreign imported steel. Sharing about this issue recently, a representative of the Vietnam Steel Association said that the Association has recently had certain opinions on unfair competition practices to relevant agencies and departments. In the coming time, the Association will have a stronger voice on H-shaped steel imported from Japan when the trend of importing this product is increasing and more continuous, causing a significant impact on the domestic manufacturing industry.

The Association is always steadfast in its stance of protecting and supporting domestic enterprises and manufacturers, creating all conditions for them to maintain and develop production and business in a healthy competitive environment. Only then will the Vietnamese steel industry in general and H-shaped steel in particular become increasingly strong and free from dependence on imported goods. "The Association also believes that Vietnamese State agencies will always protect domestic production and business enterprises from threats from unhealthy practices, regardless of which country, so that enterprises can confidently invest and develop, contributing to the prosperity of the industry in particular and the country in general," said a representative of the Vietnam Steel Association.

Faced with the "invasion" of cheap steel from China and some countries in the region, a representative of Posco Yamato Vina Steel Joint Stock Company (PYVina) said that Vietnam's construction industry in the past decade has been developing strongly, bringing a new look to urban areas. However, this development depends heavily on high-quality construction materials produced domestically. In particular, H-shaped steel is widely used and plays an important role in the country's construction industry because it provides a unique combination of superior durability that allows for heavy loads, material savings, and flexibility in open-space construction designs.

Domestic large-sized steel manufacturers have been able to meet market demand with high-quality, reasonably priced products for the 500KV Circuit 3 power transmission line (large-sized angle steel), the T3 Terminal project at Tan Son Nhat airport (U steel) as well as providing H-shaped steel as supporting structural steel in the construction of mountain tunnels for highway projects. Currently, PYVina is researching and developing other new products, such as inverted angle steel for the shipbuilding industry or rail steel for domestic and foreign railway projects. This proves that the domestic manufacturing industry has been doing its job well, helping to reduce dependence on cheap imported goods with difficult-to-control quality.

According to PYVina representative, H-shaped steel plays an undeniable role in the economy. However, in the face of the steel industry facing the challenge of excess capacity in China and the world, Vietnam is also considering creating a healthy competitive environment in the domestic market while ensuring the security of strategic material sources and sustainable development of the construction industry that has met capacity and quality standards. “Only by protecting the manufacturing industry, the government will contribute to building a solid foundation for the independent and sustainable development of the Vietnamese construction industry. High-quality domestic H-shaped steel will ensure the progress and quality of key construction projects, while promoting the development of the domestic construction materials industry,” said PYVina representative.

Regarding the risks of the steel industry in terms of "invading" the market with cheap goods, many experts previously said that management agencies need to proactively implement appropriate, timely, and effective measures according to their authority and legal regulations, protecting the legitimate interests of the domestic manufacturing industry in accordance with international practices and a fair competitive environment. According to Dr. Nguyen Thi Thu Trang - Director of the WTO and Integration Center, Vietnam Chamber of Commerce and Industry (VCCI), in Vietnam, in the past, 12/28 trade defense cases were against steel products, accounting for about 46% of the total trade defense cases that have been conducted against all types of products in Vietnam to date. Meanwhile, many countries in the world have launched 73 trade defense cases against Vietnamese steel exports. That shows that countries apply many trade defense measures to protect their local markets.

Therefore, it is necessary to establish technical barriers according to international standards to prevent poor-quality imports. On the other hand, it is necessary to develop processes and procedures for checking the quality of steel imported into Vietnam. Accordingly, imported steel must have a certificate of compliance with Vietnam's quality standards.