Amid a weakening global economy, iron and steel were no longer on the list of Vietnam’s export items exceeding $10 billion in value in August. But it’s not all doom and gloom. Steel exports to the EU and the US have both increased sharply, by 18.1 per cent and 12.9 per cent, respectively, in the past seven months.
Data from the General Department of Vietnam Customs shows that iron and steel exports posted the highest growth in the second half of July, rising 62.8 per cent. Such exports fell in the first half of the month, by 44 per cent compared to the second half of June.
Electricity shortages in China have led to a decline in the supply of iron, steel, and cement, opening up export opportunities for Vietnamese firms. The opportunity will be short-term, however, as China is likely to soon restore supply.
The Ministry of Finance (MoF) has proposed that the export tax on steel billets be increased and the preferential import tax (MFN) on certain iron and steel products be reduced.
