Import duties on steel rise to protect local makers

The Ministry of Finance has decided to raise the import tariffs on finished steel from 8 percent to 12 percent from December 21 to restrain imports, following a request from the national steel association.

The ministry also increased the import tax on steel billet from 2 percent to 5 percent. Last month, the Vietnam Steel Association (VSA) had proposed that the government hike the tariffs to protect domestic steel makers from cheaper imports.

Chairman Pham Chi Cuong said manufacturers in neighboring countries lowered prices and pushed exports to reduce stocks that had piled up as a result of falling demand in markets hit by the global economic slowdown.

Earlier this month, local steel producers raised prices by VND200,000-VND300,000 (US$12-18) a ton. The retail price is now around VND12.5 million ($735) a ton.

Domestic steel consumption this year is estimated at about three million tons, a 14 percent year-on-year decrease, VSA said.

Tuoi Tre

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