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HCM City urges Gov’t to ban re-export of steel
The HCM City People’s Committee petitioned the Government to ban re-exports of steel to avoid a crisis in the domestic construction market.
Steel prices have dropped in the domestic market due to a reduction in demand. Prices are higher in other countries, so businesses have stored domestic steel for re-export, leading to a massive pile-up of steel at ports.
The committee also suggested that the Government ask the Ministries of Construction, Industry and Trade, Transport, and Viet Nam Steel Association to help solve the current pile-up of imported goods at ports.
A meeting to discuss the matter was attended by authorities of the State Bank of Viet Nam (SBV)’s HCM city branch, the Customs Department, the Ministry of Industry and Trade (MoIT), and businesses chaired by deputy chairwoman of the HCM City People’s Committee Nguyen Thi Hong held on Wednesday.
To date, 1,244,179 tonnes of steel have been imported to HCM City, worth US$632.5 million, of which 236,789 tonnes of steel have been re-exported to other countries, valued at $190.4 million, according to the Customs Department.
About 339,505 tonnes of steel have been stuck in limbo for more than 30 days at HCM City’s ports.
Many businesses said they could not pick up their goods because of lack of funds due to higher interest rates on bank loans, tighter lending procedures, and the increased value of the US dollar over the dong.
VNS
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