Vietnamese steel sector looks to overcome trade defence measuresWith growth of up to 22 percent forecast this year and firms with bright prospects, Vietnam’s steel industry has high potential to reach many markets if it overcomes difficulties in trade defence lawsuits and high import volume. According to the Vietnam Steel Association (VSA), in 2017, the sector faced 30 trade defence lawsuits from other countries, many of which have continued into 2018. Domestic firms are unable to produce many material products such as hot-rolled steel and steel billet, thus making production slow and expensive, he added.With the recent market recovery and extensive economic integration, especially the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the upcoming singing of the free trade agreement between Vietnam and the EU, the Vietnamese steel sector can expand markets, making the growth target of more than 20 percent feasible.But the fact is when Vietnam increases exports, import markets will strengthen trade defence measures.Tran Tuan Duong, General Director of Hoa Phat Group said that Vietnamese firms should maintain the domestic market, while abiding by free trade agreements’ regulations and working with countries when lawsuits occur.“Market protection solutions are not enough. Businesses themselves should enhance their competitiveness and grasp all opportunities for development,” Duong stressed.A representative from the Vietnam Steel Corporation asserted that obstacles facing exports mostly come from trade barriers and defence measures from importing countries. The representative underscored the need for more effective market forecast and flexible production.Despite a lack of capacity and experience, Vietnamese firms can still fight trade defence in the context of integration, the representative said.Meanwhile, the VSA highlighted the need for cooperation with countries when trade defence problems arise, along with the development of professional teams to deal with investigation and data gathering.-VNA

Source: VietNamNet News April 17, 2018 04:41 UTC