Vietnamese MoF demands government to cut steel import duties

Vietnamese MoF demands government to cut steel import duties

Vietnamese Ministry of Finance (MoF) has recently submitted a petition to the government regarding duties on imported steel products. MoF stated in its petition that duties on imported steel products should be reduced as steel prices are following an upward trend. It is stated that Vietnam Steel Corporation, one of the major steel producers in the country, has not increased its prices however certain producers and retailers have increased steel prices by 5.3-9%. As previously reported by SteelOrbis, MoF increased duties on imported pig iron and steel products used in construction sector to 10% and 20% respectively. However, the prices have followed an upward trend since then. Initially, the increase in the duties was not expected to increase prices as supply in Vietnamese market was thought to be higher than the demand. However, the recent statistics revealed that Vietnam will need to import a further 400.000 tons of steel to meet the demand of construction sector. Accordingly, a cut in the duties may be discussed soon.