Steel and Steel Ingot import Tariffs Proposed to Be Removed

The Ministry of Trade and the Ministry of Finance are seeking the government’s decision to once again remove the newly-issued steel and steel ingot import taxes to stabilise the changeable domestic steel market.

From the beginning of this year, Vietnam has seen several price changes on the market. The country in March did not impose import taxes ranging between 5-40 per cent stimulate local steel companies lower their retail prices. After the removal, however, these firms faced difficulties caused by a spread of low-price steel of all kinds from China into Vietnam. To deal with the situation, the Ministry of Finance decided to resume the application of the 5 per cent tax on steel ingot imports from the Association of Southeast Asian Nations (ASEAN) and 10 per cent on those from non-ASEAN members from July. Import taxes on steel products from members of ASEAN was 15 per cent and 20 per cent for those from non-ASEAN countries.

The world price of steel ingot has reached to US$370-385 per tonne, making steel prices in the local market rise by VND350,000-500,000 per tonne. 

At the same time, the Ministry of Industry is asking the government for the establishment of the national fund for steel ingot reserve to control the local market. In addition, new import and export tax rates and new ceiling and floor prices will be issued by the State to make the market stable if necessary.

• B.T