Malaysia warns against Vietnamese steel products
By Van Nam - The Saigon Times Daily
HCMC – The Malaysian Iron and Steel Industry Federation (MISIF) warned they would file a lawsuit against Vietnam if the overflow of Vietnamese galvanized and color-coated steel sheets into Malaysia was not timely settled.
Pham Chi Cuong, chairman of the Vietnam Steel Association, quoted MISIF President Dato’ Soh Thian Lai as saying: “The local industry here has witnessed a worrisome influx of coated steel products into Malaysia from Vietnam. Related companies in Malaysia have regarded this as the dumping of such materials by Vietnam into Malaysia and that they have been severely affected by this development.”
In a letter sent to VSA, Dato’ Soh Thian Lai asked the association to monitor and undertake the necessary actions to address the influx of coated steel products. Otherwise, the affected Malaysian companies would resort to initiate trade remedial measures such as anti-dumping actions against Vietnamese firms.
Meanwhile, according to the preliminary statistics of VSA, the export volumes of local steel products picked up in recent months, especially exports to the Southeast Asian countries with zero tariff.
“VSA will promptly inform local steel companies of this warning within today for them to draw on experience and take measures to remedy the situation,” said Cuong.
Previously, the U.S. warned against Vietnamese steel pipe exports, but local firms slowly made adjustments. Eventually, the U.S. initiated a lawsuit against local steel pipes.
In early 2012, Thailand also raised voice against the vast volume of Vietnamese cold-rolled steel exported to Thailand.
Three ASEAN nations namely Indonesia, Thailand and Malaysia are applying more complicated tariff mechanisms and procedures to discourage those exporting steel products to these countries, said Cuong.
Specifically, exporters must submit the product origins, so that the authorities can check quality and technology process, and then decide to import or not. It would take 2-3 months to get permission for steel export to these countries, said the chairman. VSA has proposed similar methods to the Ministry of Industry and Trade to prevent cheap steel products from overflowing into Vietnam.