Vietnamese steel mills object to MoT decision

Vietnamese steel mills object to MoT decision

Several Vietnamese steel producers objected to a recent decision by the Ministry of Trade (MoT) providing Pomihoa Company with a tax incentive for 110'000 tons of imported ingot steel. Steel producers claim that Pomihoa will capitalize VND 30 billion ($1.8 million) on the tax incentive, causing material injury to the other local producers. The producers argue that Pamihoa will be able sell ingot VND 100'000-200'000/ton ($6-12) cheaper than its competitors. In April of this year, Pomihoa demanded that the MoT provide tax exemption to the company for ingot steel imports used at its Tam Diep laminating steel plant, claiming that the company is located in a remote area. The MoT approved the request. The approval encountered strong opposition from other local producers, who claimed that the tax exemption created unfair market conditions.