Vietnam's Ministry of Industry and Trade has officially imposed temporary anti-dumping duties on hot-rolled steel (HRC) imported from China. This decision, made on February 21, 2025, establishes tariffs ranging from 19.38% to 27.83%, aimed at addressing the significant increase of HRC imports threatening the domestic steel industry.
The duties are set to take effect 15 days from the announcement and will last for 120 days, subject to future amendments. This move follows concerns raised by domestic manufacturers, primarily Hoa Phat Group and Formosa, who documented instances of dumping. The ministry's thorough investigation revealed evidence of dumping practices at levels reaching 27.83% for specific companies.
Essentially, the increase of imported steel has been substantial, with customs data indicating imports of HRC totaled 12.6 million tons in 2024, marking over a 33% rise compared to the previous year. This surge has occurred even after the ministry initiated its investigation in July 2024, underscoring the urgency of protective measures.
The ministry noted their investigation corroborates reported damages to local producers due to artificially low prices offered by foreign companies, particularly those from China and India. According to Trần Đình Long, the Chairman of the Hoa Phat Group, "The increase of imported steel threatens our market stability and local production." His statements highlight the broader impact of these dumping practices on domestic production capabilities.
Notably, the investigation found the amount of HRC imported from India to be insignificant (less than 3%), resulting in those products being exempted from the anti-dumping tariffs. For China, approximately 16 exporting firms will be affected, some facing the maximum tariff of 27.83%, such as Guangxi Liuzhou Iron and Steel Group, with others subject to lower rates.
The ministry's actions reflect Vietnam's commitment to supporting its steel industry, which struggles against the backdrop of surging imports. The total production capacity of major domestic producers like Hoa Phat and Formosa stands at only 8.6 million tons annually, yet the local demand exceeds 13 million tons.
Trần Đình Long emphasized the measures being implemented as necessary for safeguarding local production, stating, "We have found evidence of dumping at levels up to 27.83% from these imports." He went on to affirm Vietnam's adherence to international trade standards, noting, "The measures we are taking align with WTO standards." This acknowledgment reflects the necessity for balancing growth with competitive integrity within global markets.
Throughout this period, the Ministry of Industry and Trade plans to continue engaging with stakeholders to ascertain the full impacts and refine protective measures as needed. The temporary anti-dumping duties are seen not just as immediate relief but also as part of broader strategies to stabilize and strengthen Vietnam's domestic steel production sector.
With the volume of imports surging and the average price for imported steel significantly undercutting local prices by around 20-26% compared to 2022, the situation remains dire for the local industry. These developments indicate potential long-term shifts within the market structure, necessitating sustained oversight and compliance from both government entities and manufacturing firms.
This action not only highlights Vietnam's response to trading practices perceived as unfair but also reflects the complex dynamics of international trade where local industries strive for stability amid the challenges posed by increasing global competition. Given the nature of steel production and its importance to infrastructure development, the outcome of these measures will be closely monitored within and outside the country.