Will Chinese HRC steel benefit if Vietnam raises tax?
![]() |
Commenting about the Ministry of Finance’s (MOF) plan to raise the MFN (most favored nation) tax rate on HRC imports (72.08 group) from zero percent to 5 percent, Hoa Sen Group said the tariff hike won’t restrict the import of Chinese products to Vietnam, but may do more harm than good.
Currently, both Vietnam and China are members of the ASEAN-China FTA (ACFTA). HRC products belonging to the 72.08 group imported to Vietnam can enjoy a preferential tax rate of zero percent.
If Vietnam raises the import tariff to 5 percent, this will affect imports from other countries, not China. Chinese imports will still bear the zero percent tax rate as stipulated in ACFTA.
Meanwhile, India and Taiwan, the two biggest HRC suppliers of Vietnam, which account for 31 percent of imports, will still have the tax rate of 5 percent. As such, China wil have more opportunities to boost its HRC exports to Vietnam.
An analyst also warned that the tariff increase would make the situation more serious, because enterprises would have difficulties importing supplies, and domestic output still cannot satisfy the requirements.
He went on to warn that if Vietnam raises the MFN tax rate by 5 percent, the average input material price in Vietnam would be higher than the world’s price by 8-9 percent, which means that the production cost will increase proportionally. This will make Vietnam’s steel products less competitive than other regional countries.
The representative of Hoa Sen Group affirmed that domestic HRC manufacturers are seeing the sales going well, denying information about disadvantages which ‘forcethe Vietnamese biggest steel mill in Vietnam’ to postpone a plan to implement furnace No 3.
Prior to that, MOF consulted with relevant ministries and agencies on the draft decree that amends articles of Decree 125 on the preferential import and export tariffs.
In the draft decree, MOF proposes raising import tariffs on HRC products (72.08 group) from the current zero percent to five percent.
According to the ministry, the US-China trade has raised concerns that cheap Chinese steel products would flood Vietnam, forcing steel prices in the market down.
According to Rong Viet Securities, in H1 2019, Vietnam’s steel industry faced several problems.
One was the decline in construction value growth of 7.9 percent in the first half. The decline had big impact on the demand for structural steel. However, 11.6 million tons were sold.
Related News
![New eTax Mobile application 3.2.0 officially launched](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/15/picture1-new2024082918412720240830155958.png?rt=20240830160000?240831085607)
New eTax Mobile application 3.2.0 officially launched
08:56 | 31/08/2024 Finance
![There should soon be more mechanisms to control land speculation by imposing taxes](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/14/croped/dau-giajfif2024082711000020240830140010.jpg?240831085827)
There should soon be more mechanisms to control land speculation by imposing taxes
08:58 | 31/08/2024 Headlines
![Focus on implementing key tasks to complete the 2024 financial and budget tasks](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/12/14/z5714307898918-e2573e9876e218310b01d3406c38d3f12024080915111320240812144327.jpg?rt=20240812144330?240812030926)
Focus on implementing key tasks to complete the 2024 financial and budget tasks
15:09 | 12/08/2024 Finance
![Revising SCT on automobiles must ensure harmony of benefits](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/02/13/croped/z5689758347187-ce5f0bcc046dae4a14f715b2d573c71c2024080119171520240802134637.jpg?240802021204)
Revising SCT on automobiles must ensure harmony of benefits
14:12 | 02/08/2024 Regulations
Latest News
![Vietnam’s aquatic product exports reel in positive forecasts to year end](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/shrimp-144620240907183436.4919100.jpeg?240907063502)
Vietnam’s aquatic product exports reel in positive forecasts to year end
18:35 | 07/09/2024 Import-Export
![Vietnam-Sweden Business Forum 2024 opens](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/hinh-anh-1-414720240907183241.8732450.jpg?240907063321)
Vietnam-Sweden Business Forum 2024 opens
18:33 | 07/09/2024 Import-Export
![Industrial real estate - "Magnet" attracting foreign capital](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/16/4-z5057864696649-9927657359836bc057d6000de04cc6f2202408161459212024082218451220240904160920.jpg?rt=20240904160923?240907090112)
Industrial real estate - "Magnet" attracting foreign capital
09:01 | 07/09/2024 Import-Export
![New markets help fruit exports grow to record revenues](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/qua-903020240906141844.6050400.jpg?240906021908)
New markets help fruit exports grow to record revenues
14:19 | 06/09/2024 Import-Export
More News
![Export-import through Mong Cai int’l border gate grows 24%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/ming-cai-279320240906141603.6879800.jpg?240906021625)
Export-import through Mong Cai int’l border gate grows 24%
14:16 | 06/09/2024 Import-Export
![Seafood enterprises shift business and export](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/01/22/croped/62024082708484520240901223914.jpg?240906091136)
Seafood enterprises shift business and export
09:11 | 06/09/2024 Import-Export
![Centre of raw materials for textiles and footwear expected to be launched in 2025](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/croped/372356-raw20material20centre20120240905161522.1353050.jpg?240905041544)
Centre of raw materials for textiles and footwear expected to be launched in 2025
16:15 | 05/09/2024 Import-Export
![Binh Duong’s export revenue rises 11.3%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/croped/binh-duong-exports-456520240905161355.6659760.jpg?240905041420)
Binh Duong’s export revenue rises 11.3%
16:14 | 05/09/2024 Import-Export
![Vietnamese vegetables, fruits promoted at Asia Fruit Logistica](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/croped/capture-195220240905161220.1649880.png?240905041241)
Vietnamese vegetables, fruits promoted at Asia Fruit Logistica
16:12 | 05/09/2024 Import-Export
![The key to opening new doors for agricultural enterprises](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/14/croped/152024082710414820240830143119.jpg?240905100212)
The key to opening new doors for agricultural enterprises
10:02 | 05/09/2024 Import-Export
![Note for businesses when converting green and digital](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/13/croped/142024082710321220240830135517.jpg?240905100039)
Note for businesses when converting green and digital
10:00 | 05/09/2024 Import-Export
![Việt Nam targets developing green steel products](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/14/croped/370578-steel20240904144042.jpg?240904024143)
Việt Nam targets developing green steel products
14:41 | 04/09/2024 Import-Export
![Rice exports top 6.1 million tonnes in eight months](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/14/croped/gia-gao-xuat-khau-giam-772027-200320240904142833.9542750.jpg?240904022853)
Rice exports top 6.1 million tonnes in eight months
14:28 | 04/09/2024 Import-Export
Your care
![Vietnam’s aquatic product exports reel in positive forecasts to year end](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/medium/shrimp-144620240907183436.4919100.jpeg?240907063502)
Vietnam’s aquatic product exports reel in positive forecasts to year end
18:35 | 07/09/2024 Import-Export
![Vietnam-Sweden Business Forum 2024 opens](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/medium/hinh-anh-1-414720240907183241.8732450.jpg?240907063321)
Vietnam-Sweden Business Forum 2024 opens
18:33 | 07/09/2024 Import-Export
![Industrial real estate - "Magnet" attracting foreign capital](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/16/medium/4-z5057864696649-9927657359836bc057d6000de04cc6f2202408161459212024082218451220240904160920.jpg?rt=20240904160923?240907090112)
Industrial real estate - "Magnet" attracting foreign capital
09:01 | 07/09/2024 Import-Export
![New markets help fruit exports grow to record revenues](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/medium/qua-903020240906141844.6050400.jpg?240906021908)
New markets help fruit exports grow to record revenues
14:19 | 06/09/2024 Import-Export
![Export-import through Mong Cai int’l border gate grows 24%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/medium/ming-cai-279320240906141603.6879800.jpg?240906021625)
Export-import through Mong Cai int’l border gate grows 24%
14:16 | 06/09/2024 Import-Export