Vietnam’s imports of Chinese steel rise 62% i n Jan-Oct: customs

[beijingwalker]

Vietnam’s imports of Chinese steel rise 62% i
n Jan-Oct: customs

TUOI TRE NEWS

UPDATED : 11/24/2015 16:02 GMT + 7

Vietnamese steelmakers are hurt by the huge imports of Chinese products, which rose 62.1 percent year on year in the January-October period, the General Department of Vietnam Customs has said.

Vietnam spent US$3.49 billion importing 7.71 million metric tons of steel from China during the ten months, a 39.8 percent increase in value, the customs department said in a report on November 19.

Chinese products accounted for as much as 61.1 percent of Vietnam’s total steel imports in the period.

The Southeast Asian country’s steel imports totaled 12.62 million metric tons and $6.28 billion between January and October, up 34 percent in volume and 0.3 percent in value, according to customs figures.

The average import price then dropped 25.2 percent from a year earlier, so the import value only went up slightly, the customs department explained.

The large imports of Chinese steel are creating huge pressure on and difficulty for Vietnam’s domestic manufacturers, Ho Nghia Dung, chairman of the Vietnam Steel Association (VSA), told The Saigon Times Online on Monday.

China is exporting around 20 million metric tons of steel to Southeast Asian countries on an annual basis, with Vietnam taking 30 percent of that figure.

Vietnam’s steel consumption is forecast to rise 20 percent year on year to seven million metric tons in 2015, thanks to the revitalized realty sector, according to the VSA chairman.

However, competition has become tougher for Vietnamese steelmakers as global steel prices have fallen sharply whereas the domestic market is flooded with cheap imports, he added.

“The VSA has repeatedly called on authorities and relevant agencies to put up technical barriers or take trade remedy action to stop Chinese steel from prevailing in the Vietnamese market,” Dung said.

Vietnamese steelmakers are also hurt by a trick local steel importers employ to dodge import duties.

Vietnam currently slaps a zero tariff on imports of steel alloyed with chromium, whereas the non-alloy products are subject to a nine percent tax.

Many businesses therefore import alloy steel billets with a very small content of chromium to enjoy the tariff exemption.

With the small content of chromium not affecting the quality of the steel billets, businesses can turn them into steel products used for construction, instead of importing the highly-taxed non-alloy steel billets.

In the January-September period, 1.2 million metric tons of alloy steel billets were imported into Vietnam under such a trick, 75 percent of which were from China, according to the VSA.

The association has thus urged the Ministry of Industry and Trade to probe the dishonest steel importers to protect domestic steelmakers.

The ministry last week tasked separate inspection teams with carrying out checks on alloy steel billet importers in Hanoi, Bac Giang Province and Hai Phong City in the north, and Ba Ria-Vung Tau Province in the south, from November 19 to 23.

The inspection results are expected to be publicized later this month.

Vietnam’s imports of Chinese steel rise 62% in Jan-Oct: customs

 

[Nike]

i am supposed Vietnam had sufficient domestic industry to challenge Chinese head on, unfortunately not

 

[Viet]

i am supposed Vietnam had sufficient domestic industry to challenge Chinese head on, unfortunately not

If you check the news in related business, you will find the same complaint in Europe. The Chinese have massive overcapacity, hardly to compete against them if Chinese companies dump the steel. Chinese accept losing money just wanting to kill competition. That's a game you can't win.

 

[Huan]

With China's massive overcapacity, why not build lots of more skyscrapers and 1000+ navy ships to take up the excess amount?

 

[Nike]

If you check the news in related business, you will find the same complaint in Europe. The Chinese have massive overcapacity, hardly to compete against them if Chinese companies dump the steel. Chinese accept losing money just wanting to kill competition. That's a game you can't win.

We had the same problems back home, but that's not what i want to stressed it.

One or maybe most of Vietnamese member here posting shit like when Vietnam joining TTP, they can kill Chinese industries and with the same tone they repeat it and repeat. Came on, look the massive deficit in trade relations between China-Vietnam in which China dominating almost in every segment of trade sector between China-Vietnam, especially in manufacturing products, such as steel, cement, electronic equipment and parts, car engines and so on. That's not something you can heal it with join TTP. As much TTP will further make Vietnam will be depends on China more than ever. As more country will set up their assembly production line in Vietnam to pursue more benefit from low wages worker, tax incentive, and other special privileges for major companies from Vietnam gov. but on other hands. Most of those companies will import more of their spares and parts needed for their production lines from China, as China had been shifted their manufacturing product in which not only they just became an assembler of other companies product but they had setting up a complex and full spectrum of chain production line. What they need is just to exporting their parts to other country who only assembled them like Vietnam, Philippine and Thailand has done so far. Thus way came a massive deficit trade between both countries.

 

[xunzi]

Kaching, money in the bank! LOL

 

[Kyle Sun]

We had the same problems back home, but that's not what i want to stressed it.

One or maybe most of Vietnamese member here posting shit like when Vietnam joining TTP, they can kill Chinese industries and with the same tone they repeat it and repeat. Came on, look the massive deficit in trade relations between China-Vietnam in which China dominating almost in every segment of trade sector between China-Vietnam, especially in manufacturing products, such as steel, cement, electronic equipment and parts, car engines and so on. That's not something you can heal it with join TTP. As much TTP will further make Vietnam will be depends on China more than ever. As more country will set up their assembly production line in Vietnam to pursue more benefit from low wages worker, tax incentive, and other special privileges for major companies from Vietnam gov. but on other hands. Most of those companies will import more of their spares and parts needed for their production lines from China, as China had been shifted their manufacturing product in which not only they just became an assembler of other companies product but they had setting up a complex and full spectrum of chain production line. What they need is just to exporting their parts to other country who only assembled them like Vietnam, Philippine and Thailand has done so far. Thus way came a massive deficit trade between both countries.

dude,you are wasting your time to argue about tpp issue with viets.

 

[Viet]

We had the same problems back home, but that's not what i want to stressed it.

One or maybe most of Vietnamese member here posting shit like when Vietnam joining TTP, they can kill Chinese industries and with the same tone they repeat it and repeat. Came on, look the massive deficit in trade relations between China-Vietnam in which China dominating almost in every segment of trade sector between China-Vietnam, especially in manufacturing products, such as steel, cement, electronic equipment and parts, car engines and so on. That's not something you can heal it with join TTP. As much TTP will further make Vietnam will be depends on China more than ever. As more country will set up their assembly production line in Vietnam to pursue more benefit from low wages worker, tax incentive, and other special privileges for major companies from Vietnam gov. but on other hands. Most of those companies will import more of their spares and parts needed for their production lines from China, as China had been shifted their manufacturing product in which not only they just became an assembler of other companies product but they had setting up a complex and full spectrum of chain production line. What they need is just to exporting their parts to other country who only assembled them like Vietnam, Philippine and Thailand has done so far. Thus way came a massive deficit trade between both countries.

Putting all trollings aside you will see TPP has two components: political and economical. The latter is about to reduce over-reliance on a single partner which is China. Not stop trading. No way. That should mean we try to find more markets more trading partners, aka instead of 25 percent growth per year maybe 20 percent in trading with China.

 

[Edison Chen]

VN is TPP nation, VN doesn't have to import steel from China.

 

[vtnsx]

You're all just wasting your time talking about TPP. Forget it. Vietnam lacks mining capacity and lack Foundry plants. But with more investment, ppl will invest in those. Simple.

 

[Echo_419]

i am supposed Vietnam had sufficient domestic industry to challenge Chinese head on, unfortunately not

Same story everywhere.Chinese are giving world's steelmakers a hard time

 

[Nike]

Same story everywhere.Chinese are giving world's steelmakers a hard time

including Indian Tata giants...

Chinese steel production is heavily subsidized by Chinese government through one or other way, and they are doing it on massive scale.

 

[Echo_419]

including Indian Tata giants...

Chinese steel production is heavily subsidized by Chinese government through one or other way, and they are doing it on massive scale.

Yes situation in India is bad like the majority of the world,though we are considering more tariffs for Chinese steel .

 

[大汉奸柳传志]

So this is how China benefits from TPP huh? by yoking and riding Vietnam..

 

[Audio]

There are signs Chinese central government will loosen the "lifeline" to many such loss making operations. Defaults already started for sectors with most overcapacity.

This dumping of steel to Vietnam is just an attempt from the selling companies to survive.