Cold-rolled stainless steel has become the first import product to spark an anti-dumping investigation in Vietnam / PHOTO COURTESY OF TBKTSG
The Vietnam Competition Authority plans to organize a public hearing of the country’s first anti-dumping investigation regarding stainless steel imports next month, in spite of objections from importers.
Last December, the agency under the Ministry of Industry and Trade concluded that imports from China, Indonesia, Malaysia, and Taiwan had been dumped and proposed a tax of 6.45-30.73 percent take effect in 120 days, Thoi bao Kinh te Sai Gon (Saigon Times) Online reported Tuesday.
The investigation was launched at the request of local stainless steel producers Posco VST and Inox Hoa Binh, which enjoy a combined market share of 80 percent.
Soon after the agency announced its initial findings, 18 businesses that manufacture stainless steel from imported raw materials raised objections.
They said that once the tax was applied, they'll lose access to raw materials and their competitive edge.
However, Pham Chi Cuong, former chief of the Vietnam Steel Association, told the newspaper that if Vietnamese authorities produce sufficient evidence of dumping, they should take action, because in a long term the dumping of raw materials will hurt the local industry.
“By filing an anti-dumping lawsuit the plaintiffs are simply seeking justice in international trade,” he said, noting that in other countries when there is a conflict of interest between producers and importers, authorities tend to protect the former.
He advised Vietnamese authorities to be careful about imposing the tax, given that it's the first time Vietnam has taken such steps.
The country only issued its first anti-dumping ordnance in 2004.
Stainless steel products are subject to the duty of 0-10 percent when imported into Vietnam. Countries which enjoy free trade agreements with Vietnam, like China and ASEAN countries, are exempt from the duties.
That said, Vietnam would not be the first trading partner to take such a steop.
Indonesia’s anti-dumping authority KADI has announced an investigation into cold-rolled steel imports from Vietnam, Japan, China, South Korea, and Taiwan.
In December 2012 KADI imposed an anti-dumping tax of 13.5-36.6 percent on imports from Vietnamese companies, according to the Vietnam Competition Authority.
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