The Vietnamese government has cut the value added tax (VAT) on steel products from 10 percent to 5 percent, causing a drop in prices of steel in the domestic market.
Vietnam has moved to cut VAT on steel products to help companies cope with the economic slowdown. Vietnamese producers expect the tax cuts to stimulate the country's economy. The Vietnam Steel Association forecasts sales of steel to reach approximately nine million mt in 2009, marking an increase of between two percent and five percent.
Meanwhile, Vietnam's ministry of finance is cut its tax on coal exports to 10 percent, following anticipated approval by the ministry on February 15, 2009. Vietnam projects exports of 19.5 million mt of coal in 2009.
It may be noted Vietnam's economy expanded by 6.2 percent in 2008, the lowest margin in nine years, after growing 8.5 percent in 2007. The government is targeting 6.5 percent growth in 2009.