VietNamNet Bridge reported that Vietnamese steel makers continue to face difficulties in production and business because of fierce competition with Chinese steel products and over supply.

Steel is produced at Siam Steel Vietnam Company. Domestic steelmakers are facing many challenges due to fierce competition from Chinese rivals.

Mr Do Duy Thai general director of Thep Viet Corporation that holds 61.7% of shares at Pomina steel company, said 300,000 tonnes of steel had been imported from China at zero per cent import tax.

The imports were taking advantage of a loophole allowing steel made by the oxygen-converter process to enter Viet Nam free of duty.

He said the State should impose import tax on steel products made by the process.

The Chinese imports are said to have seriously affected the domestic steel industry because the selling price of the Chinese steel is now USD 20 to USD 30 per tonne cheaper than that made locally.

Meanwhile, the price of local steel products fell by VND2 million (USD 95.2) to VND15.4 to 17.8 million (USD 733-847) in the north and VND 16 to VND 18 million (USD 762-857) in the south.

Viet Nam Steel Corporation general director Le Phu Hung said in the first half this year, seven out of 13 corporation members and its five joint ventures had suffered losses due to difficulties in production and business.

The association reported that in the first half this year, sales by the local steel industry increased year-on-year by 6.84% to 5.8 million tonnes, including 1.4 million tonnes for export, much of it to ASEAN nations.

Source - VietNamNet Bridge