Steel firms need State support or face closure
Steel firms need State support or face closure
The Viet Nam Steel Association (VSA) has warned that local steel businesses may face bankruptcy if the State does not intervene.
The announcement came as VSA businesses reported a 2.08 per cent drop on 2012 production levels, producing only 2.26 million tonnes of construction steel during the first half of this year. As of June 30, nearly 327,000 tonnes of this produce had yet to be sold.
The association blamed the industry's dire state on the real estate market's extended freeze and the dominance of Chinese steel in Viet Nam.
Large quantities of Chinese alloy are being imported as construction steel to dodge taxes and undercut domestic producers to the point of bankruptcy, the VSA said.
Competition from imported foreign steel has pushed prices down VND300–500 (US$0.014-0.024) per kilo, whilst local producers are also struggling with anti-dumping taxes imposed by several export markets.
By the end of May, more than 5.3 million tonnes of steel, worth $3.5 billion had been imported to Viet Nam, while total export volume reached just 1.2 million tonnes, with turnover slightly over $1 billion, according to the General Department of Customs.
vietnamnews
