This is the first time Vietnam has levied anti-dumping tariffs on imports from other nations to the local market following its integration into the global economy. However, there remain differing opinions on the question as to the actual impact of the tariffs on domestic consumption and production.
The MoIT said it is levying tariffs ranging from 3.07% to 37% specifically on cold-rolled stainless steel products imported from China, Indonesia, Taiwan (China) and Malaysia. Earlier, in 2013, two businesses including Posco VST and Hoa Binh Inox asked the Vietnam Competition Authority (VCA) to initiate an anti-dumping investigation on stainless steel imports from the four countries.
Before imposing the anti-dumping tariffs, the VCA investigated the case for over one year. The results showed businesses from these nations had dumped their products in the domestic market, causing unfair competitiveness for local businesses.
Ho Nghia Dung, President of the Vietnam Steel Association said the MoIT’s decision is accurate and prudent. When foreign businesses dump their products in the local market, Vietnamese businesses should request an anti-dumping investigation to protect themselves in accordance with international norms.
However, many import businesses do not agree with the decision. They suggest that if the anti-dumping tariffs are imposed, steel prices might escalate, resulting in further damages for both Vietnamese consumers and businesses.
SunHouse Group President Nguyen Xuan Phu suggests the anti-dumping tariffs levied on businesses’ input materials probably will increase the product final price by at least 5%, leading to lower competitiveness.
The simple fact is, no local businesses can produce cold-rolled stainless steel and they must of necessity import steel rolls for outsourcing activities. If anti-dumping tariffs are imposed on these companies they will pass the tariffs back on to the Vietnamese businesses in the form of higher prices.
It’s a circular argument Phu said and the issue is not reasonable.
Mr Phu said if anti-dumping tariffs are imposed on steel imports, then Vietnamese businesses either cannot import these products or must pay higher prices. In the future when Vietnam joins the ASEAN Economic Community (AEC), the situation will change, but right now imposing the tariffs only hurts Vietnamese businesses.
Pham Chau Giang, a representative from the VCA under the MoIT said in her view the imposition of anti-dumping tariffs not only aims to protect local production but also creates fairness between imports and local goods.
Many businesses are concerned the tariffs may raise input costs across the board for finished products, resulting in increased sales prices with the final consumer ultimately paying them through increased sales prices.
Ms Giang explained the dumping tariffs only apply in the situation when foreign businesses deliberately sell their products in Vietnam at a lower price than in their own country’s market, so these concerns are unwarranted.
At present, many nations have exported steel into Vietnam. However, anti-dumping tariffs have been imposed only on the mentioned above four nations. Therefore, there is no need for alarm as local businesses can import steel from other nations.
The decision on imposition of the anti-dumping measures takes effect on October 5. To avoid affecting enterprises’ production activities, the VCA has informed local producers, foreign export businesses and local import companies about the decision.
