The global and regional economic developments continue to face risks due to the complicated evolution of the COVID-19 pandemic and social distancing measures to limit the spread of disease. Since the beginning of the epidemic season, there have been more than 54 million people infected with Covid worldwide and more than 1.3 million deaths. Officially published statistics in many economies show the serious consequences of the pandemic. Many economies in the world are facing the second outbreak of the COVID-19 pandemic.
However, economies still consider and reopen, but be more cautious and pay attention to the transition between the lockdown and restore economic activity. Tensions between major economies between the US and China and between the US and its allies, the natural disaster situation … also pose additional challenges to the economic recovery process of many countries around the world.
As for the steel industry, the giants of the steel industry such as China, Japan, and South Korea are coming into winter with long holidays, due to the influence of weather, production becomes more limited. Meanwhile, the steel mills in the world such as the US, EU, and Mexico are still heavily affected by the second Covid wave, some areas are locked down so that factories cannot run their production lines.
In Vietnam, the COVID-19 epidemic has significantly reduced key growth motivation such as exports and domestic consumption in general and the steel industry in particular. However, construction material production and consumption started to recover from the middle of the third quarter and is expected to continue to be more active in the last months of the year to meet the world’s demand for steel.
Facing opportunities from international economic integration, especially the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-EU Free Trade Agreement (EVFTA), the steel industry is one of the industries that is expected to have more conditions to attract investment, boost production and export to new markets. These will also be positive factors that help raise the growth expectation of the steel industry in the near future.
However, the Ministry of Industry and Trade also emphasized the current warning that the steel industry still has to compete fiercely with imported steel which penetrates the Vietnamese market. In particular, the steel industry faces trade defense lawsuits, especially the initiation of an evasion investigation of trade remedies in export markets, making it difficult to export.
According to statistics from the Ministry of Industry and Trade, since the beginning of the year, Vietnam has been only initiated by other countries to investigate 4 anti-dumping cases. This figure shows that compared to 2019 and 2018, the number of lawsuits has decreased significantly. This proves that Vietnamese goods are gradually ensuring stability in terms of quality as well as price, and can compete fairly on the market of other countries.
Nevertheless, to limit the investigation and application of trade remedies, Vietnamese enterprises need to develop export strategies towards diversifying markets, avoiding overheating in one market. Strengthen competition by quality and limit competition by cheap prices.
In addition, resources should be prepared to deal with the risks of trade remedies. To equip with basic knowledge of trade remedies laws, especially legal provisions on trade remedies in export and current markets.
To know more about steel market information or trade defense, please feel free to contact us at:
Ms. Gracie – Juridical Executive of MRS Steel
Whatsapp: 00 84 833 407 559