Ministry raises steel export tax

Hanoi (VNA) - The Ministry of Finance on August 4 raised the export
tariff of steel from the current 10 percent to 20 percent in a bid to curb
increasing exportation by local steel makers.

The raise, which applies to non-alloy steel, will be effective from August
11, the ministry said.

Local steel ingot producers in May began exporting products due to a sharp
drop in domestic demand. Van Loi Steel and Cast Iron Co. shipped 10,000
tonnes to the Philippines , and Dinh Vu Steel Co. exported 30,000 tonnes to
countries in Southeast Asia .

The two firms said that they were forced to export, as they could not sell
the product on the domestic market. They said the Government's lowering of
the targeted growth rate as part of the anti-inflation campaign had resulted
in the delay of many construction projects.

The Vietnam Steel Association (VSA) last month asked for Government
permission to allow members to raise steel products prices in line with the
increasing cost of input materials, namely steel ingots.

The association, which represents more than 20 leading steel makers in
Vietnam , said prices of finished steel products should be raised to match
regional and world levels to minimise losses.

According to VSA, Vietnam will need 4 million tonnes of steel ingots this
year. Domestic producers are anticipated to supply only 50 percent of this
amount, with the remaining volume to come from imports.-Enditem