Despite various trade defense lawsuits filed by other countries, Vietnam has been able to maintain the growth of its iron and steel exports.

Ministry of Industry and Trade data show that in October 2018 Vietnam exported 500 million tonnes of iron and steel worth US$338 million. In the first 10 months, iron and steel exports totaled 5,113 tonnes in volume and US$3.7 billion in value, up 49 percent in value compared with the same period last year.

The export value growth stems from both increases in volume and price. The average export price in the first nine months was US$736 per tonne, 11.7 percent higher compared with the same period in 2017.

Major importers of Vietnamese iron and steel in the first three quarters of 2018 included Southeast Asian countries, the US and the EU. Exports to Southeast Asia grew 33.2 percent in volume and 51.2 percent in value compared with the same period last year, accounting for 55.7 percent of total volume and 51.7 percent of total value. The export price to this market also increased by 13.6 percent, averaging US$683 per tonne.

In the first nine months of this year, 74 percent of iron and steel export markets saw increases in value compared with the same period in 2017, while 26 percent recorded decreases. Notably, exports to Egypt surged, by 136.1 percent in volume and 87.3 times in value, reaching 3,266 tonnes and US$2.32 million, respectively. Strong increases were also recorded for other markets, such as the Ukraine, up 297.6 percent (US$0.17 million); Japan: 226 percent, US$43.73 million; Bangladesh: 164.8 percent, US$4.39 million; and Chinese Taipei: 139.9 percent, US$142.56 million.

According to Nguyen Van Sua, Vice President of the Vietnam Steel Association, since August 2018, the Vietnamese steel sector has faced nearly 10 trade defense lawsuits by the US, the EU, India, Thailand and Malaysia. However, domestic companies have taken the initiative in enhancing their competitiveness and strived to become self-sufficient in materials in an effort to restrict the adverse impacts of trade defense measures.

Nguyen Van Sua added that trade defense policies applied by other countries will affect Vietnam to some extent. For example, the trade war between the US and China, the world’s two largest economies, has had both positive and adverse impacts on the Vietnamese steel sector.

The confrontation between the two powers will reduce their demand for steel, resulting in decline of raw materials. However, Vietnamese steel businesses importing materials from China run the risk of US measures to prevent the evasion of anti-dumping and anti-subsidy taxes imposed by the US on China (more than 200 percent for cold rolled steel and more than 550 percent for galvanized corrugated iron).

Source: VEN