Vietnam's Steel Exports to ASEAN in 2023: Market Trends and Trade Remedies

Steel NewsDate: 18-09-2023 by: Ngoc Cam

According to the General Department of Customs, in July 2023, Vietnam exported 900,000 tons of iron and steel to countries around the world, the ASEAN countries including Cambodia, Malaysia, Indonesia, Philippines, Thailand, Singapore, Myanmar, and Laos. In the first 6 months of 2023, Cambodia was the second-largest iron and steel import market from Vietnam after Italy.

1. ASEAN is still the primary export market of Vietnam's steel industry

According to the General Department of Customs statistics, in July 2023, Vietnam exported 900,000 tons of iron and steel, reaching 658 million USD, up 47.8% in volume and 3.1% in iron and steel export value, compared to the same period in 2022. Accumulating the first 7 months of 2023, Vietnam exported 6.28 million tons of iron and steel, reaching 4.91% billion USD, up 16.2% in volume.

According to data from the Vietnam Steel Association (VSA), in the first 6 months of 2023, Italy was the largest iron and steel import market with a total value of up to 650 million USD. Cambodia and the US reached 394 million USD and 386 million USD, respectively.

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Currently, ASEAN is still Vietnam's primary steel export market, in which iron and steel exports in the first half of 2023 to Malaysia reached 308 million USD, followed by Indonesia with 212 million USD, Thailand hold 3rd position with 153 million USD, Philippines with 87 million USD, Singapore with 41 million USD, Myanmar with 6.9 million USD and Laos with 23 million USD.

2. The situation of applying ASEAN trade remedies

2.1. Malaysia

Among ASEAN member states, Thailand, Malaysia, Indonesia, and the Philippines are adopting trade remedies. According to WTO statistics, in the first half of 2022, Malaysia investigated a total of 115 cases and applied 70 trade remedies. Currently, Malaysia is applying trade remedy measures with 7 steel products of Vietnam including galvanized steel, cold rolled steel, aluminum zinc alloy coated steel,... In 2022, Malaysia conducted an anti-dumping policy on 2 cold-rolled/non-alloy steel products with thickness from 0.2-2.6mm and width from 700-1300mm from Vietnam.

2.2. Indonesia

Since 2021, Indonesia has not initiated a new trade remedy investigation with Vietnam. According to statistics by the end of June 2022, the country has investigated a total of 182 cases and applied 95 trade remedy measures against goods imported from abroad, but there are no cases related to steel imported from Vietnam.

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2.3. Philippines

According to WTO statistics, by the end of June 2022, the Philippines has investigated a total of 115 cases, including 3 cases related to galvanized steel, aluminum zinc alloy, and coated steel products imported from Vietnam. According to the latest updated import data, the Philippine Department of Trade and Industry (DTI) announced to stop investigating the above 3 global safeguard cases due to the insignificant import volume, which is eligible for a license. Excluded from the safeguard measures of the Philippines according to the regulation. Therefore, Philippine steel importers can continue to benefit from cheap and quality Vietnamese steel sources without being negatively affected by the government's defense policy.

2.4. Thailand

As of June 2022, Thailand has investigated a total of 105 cases and applied 66 trade remedy measures against imported goods. Thailand has investigated 08 cases related to Vietnamese exports, including 06 anti-dumping and 02 self-defense. The products under investigation include hot-rolled non-alloy steel plates in coils and without coils; welded steel pipes and tubes, stainless steel pipes; color-coated corrugated iron; cold-rolled and cold-rolled carbon steel in coils or not coils. In 2022, Thailand conducted the end-of-term review of 02 anti-dumping cases, including the case of galvanized aluminum-zinc alloy steel, color-coated steel, and stainless steel pipes.

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On June 7, 2023, the Department of Foreign Trade of Thailand (DFT) issued the conclusion in two cases of sunset review of the anti-dumping duty order on galvanized steel and aluminum-zinc alloy-coated steel imported from Vietnam.

Thailand ended the anti-dumping duty for Certain Hot Dip Plated or Coated with Aluminum Zinc Alloys of Cold Rolled Steel (GL).

For Painted Hot Dip Galvanized of Cold Rolled Steel and Painted Hot Dip Plated or Coated with Aluminum Zinc Alloys of Cold Rolled Steel (PPGI/PPGL), DFT extended anti-dumping measures valid for 5 years at 4.3-60.26% of the CIF price.

The list of Vietnamese color-coated steel exporters involved in this incident includes: