Steel made in Vietnam is not dumped in Korea

The battle for protection of the steel industry is becoming increasingly "hot" when recently two large Korean steel companies, Hyundai and Dongkuk, want the government of this country to investigate and consider H-shaped steel tax originating from Vietnam. .

However, speaking to Thanh Nien, Mr. Nghiem Xuan Da, Chairman of Vietnam Steel Association (VSA), said that the association is working with Korean authorities and affirmed that there is no current dumping of this item.

Recently, some major newspapers in South Korea have reported that Hyundai and Dongkuk - the two leading steelmaking groups of this country want the Korean government to tax H-shaped steel of Vietnam? How do you evaluate this incident?

Mr. Nghiem Xuan Da: Despite being one of the leading steel producing countries in the world, Korea is also facing fierce competition to protect the domestic market with trade remedies. Two major steel manufacturing groups of this country, Hyundai and Dongkuk, have recently begun taking actions to consider anti-dumping lawsuits from Vietnam against Posco SS Vina Company (a subsidiary of the Group). Posco Korea) has a steel factory located in Ba Ria-Vung Tau, with the main product being shaped steel.

According to the report of the Korea Steel Association, in 2018, H-shaped steel imported from Vietnam increased by more than 10.4%, equivalent to an output of 200,000 tons, accounting for 55% of the total H-shaped steel imported into Korea (365,000). ton). In the first quarter of 2019, the figure continued to increase with an output of 55,000 tons (corresponding to an increase of 15.7% compared to the same period last year).

Since then, Hyundai and Dongkuk are afraid that without safeguard measures, H-shaped steel from Vietnam will spill over to influence China. In 2016, China was sanctioned for quantity and price, causing imports to decline and leading position to be replaced by Vietnam.

Could you give an example of specific price to compare and prove H-shaped steel from Vietnam does not devalue?

As of October, 2018, H-shaped steel sold in this market of Vietnam was 840,000 won / ton (about 715.62 USD / ton), while that of Hyundai was 860,000 won / ton (732.66 USD / ton). . By May 51919, Hyundai's price was almost on par with Vietnam's steel, fluctuating at 830,000 won / ton (707.11 USD / ton). Therefore we frankly expressed our views, there is no phenomenon of dumping this product in the Korean market.

In addition, in the Korean market, Hyundai and Dongkuk are still dominating the market with 72% market share in 2016, up to 76% in 2017 and 84% in 2018. Thus, it is impossible to say H-shaped steel from Vietnam Nam caused a disturbance, occupying the market of Korean enterprises.

In the opposite direction, will they export this product to Vietnam?

In 2018, Vietnam's H-shaped steel exports to Korea have increased to 202,000 tons / 2,689 million tons of demand. In the opposite direction, South Korea also exports H-shaped steel to Vietnam. In 2018 it was 31,617 tons with an average price of 677 USD / ton. Most H-shaped steel products imported from Korea into Vietnam are imported in the form of alloy steel, but have lower import unit prices than ordinary H-shaped steels (combined steel import tax rates). Kim only 0%, while this tax rate is 10% for carbon steel) .The cooperation between Vietnam and Korea is developing very well, the steel business of the two countries need to cooperate for the sake. of their businesses and contribute positively to the development of bilateral relations. VSA hopes there will be no unnecessary conflict when this issue can be resolved through the understanding and cooperation between the two steel associations of the two countries.

Recently, after getting the information, VSA also sent a letter to the Ministry of Commerce, Industry and Energy of Korea, as well as exchanging and explaining its views with the Korea Steel Association ( KOSA). We also stated that Korea is Vietnam's fourth largest trading partner and in 2018, Vietnam had a trade deficit of US $ 29 billion compared to South Korea. Steel import from South Korea is 1.5 billion USD, while exports are only 200 million USD. Therefore, in terms of the nature of steel import-export relations between the two countries, Korea has trade surplus of US $ 1.3 billion to Vietnam (in 2018) - Mr. Nghiem Xuan Da, Chairman of VSA.

(According Thanhnien.vn)