Alloy steels contain Bo difficult for the domestic steel industry
Posted in: 19/01/2015
This type of commercial fraud to enjoy preferential tax when imported into Vietnam
Steel Tanks micro alloying elements (0.0008% Bo) imported into Vietnam are tax 0% deals have taken place in recent years. This issue of the Vietnam Steel Association has also repeatedly warned well as recommendations to the authorities about its consequences caused to the domestic steel industry as well as consumers. However, this problem has not been solved thoroughly, imported steel Bo increasingly more difficult for the domestic steel industry in the context of the economy remains difficult.
Bo Steel 50%
Information from the Vietnam Steel Association show that in the past year, the amount of steel imports into Vietnam up to 11 million tonnes, up 105% compared with the previous year (this is the highest rate ever). It is noteworthy that in the 11 million tonnes of steel, the import of which is up to 4.78 million tons of steel Bo. Steel Bo in Vietnam when used as construction steel. This steel is sold on the market at prices lower than the domestic construction steel from 1-2 million / ton. This type of low-quality steel, so when put into the construction will not ensure safety.
Many steel mills are reducing the capacity from 60% -65%
Many steel mills are reducing the capacity from 60% -65%
And yet, while cheap Chinese steel spill into the Southeast Asian country and more, including Vietnam. In 2014, Chinese steel types Vietnam into about 5.3 million tons, up 66.1% compared with the previous year. China Steel also tapping the ASEAN countries. Known 2009, Chinese steel exports to this region is 4.13 million tons, the 2010 surged to 7.68 million tons (in later years continued to rise).
According to the Vietnam Steel Association, the issue has been Southeast Asia Steel Association (AISC) and has warned any move to petition the Department of Economics - International Commerce (Ministry of Commerce of China), Ministry of Commerce Thailand, the ASEAN Secretariat of the Free Trade Agreement ASEAN - China (ACFTA) highlighted the problem of Chinese steel exports have flooded into the South East Asian countries since the official implementation of the ACFTA in May 1-2010 was damaging to the steel industry of ASEAN countries.
Pressure
Many domestic steel enterprises that need rapid state duty for this type of steel Bo like other steel types to avoid commercial fraud, unfair competition. Mr Do Duy Thai, General Director of Vietnam Steel Company Limited (Pomina), said the situation of weak steel consumption over the years while Bo steel influx fierce competition did affect the domestic steel industry . Currently steel enterprises have to "swim" to exist. This issue needs to MOIT and departments on the measures resolved.
Due to large amount of steel imports, including 50% of steel Bo led to fierce competition, while the economic situation remains difficult, weak steel consumption so many domestic steel mills have reduced capacity produce. Reportedly there are many large domestic steel mills to reduce capacity by 60% -65%. The reduction in capacity has affected the cost of production, pushing prices higher, causing damage to businesses as well as high cost tough competition with imported goods. Many steel mills are not competitive enough to temporarily shut down or dissolved.
According to the business world, the consumption of steel in the state is still sluggish. Real estate market, social welfare projects, public works is not enough traction steel consumption from increasing. To pull the consumption of steel in future increase must promote social welfare policies, with clear policies for specific real estate market. Avoid general policy, does not come to life, no one is responsible.
Article and photo: NGUYEN HAI
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