In an interview with Lao Dong Newspaper, Director General of the General Statistics Office (Ministry of Planning and Investment) - Ms. Nguyen Thi Huong recommended that businesses need to closely follow the market and implement the strategy of "not putting all eggs in one basket".
How do you evaluate Vietnam's aluminum and steel exports to the US in recent times?
- The US is the largest import market for aluminum and aluminum products from Vietnam, accounting for 24.8% in 2023. Among the countries exporting aluminum and aluminum products to the US, Vietnam ranks 12th (according to UN Comtrade). Accounting for 1.6% of the total import turnover of aluminum and aluminum products from the US in 2023.
Vietnam will export iron and steel to the US market in 2024, increasing the value of iron and steel exports by 54.8% compared to 2023. The US is the second largest iron and steel import market in 2023 and the first in 2024 of Vietnam, with proportions reaching 10.2% and 14.5%, respectively.
Among the countries exporting iron and steel to the United States, Vietnam ranks 16th (according to UN Comtrade) and accounts for 1.2% of the total iron and steel import turnover of the United States in 2023.
What challenges will the US impose on all steel and aluminum imported into the country, madam?
- When US President Donald Trump imposes a new 25% tariff on all steel and aluminum imported into the US, there may be some negative impacts on Vietnam's steel and aluminum export and production activities. However, Vietnam's steel and aluminum still have the opportunity to continue exporting to the US when the capacity of domestic manufacturers in this country cannot meet the demand immediately.
The US's imposition of import tariffs on steel and aluminum may cause businesses exporting these products in other taxed countries to seek protection for domestic production. This will lead to difficulties in exporting steel and aluminum from Vietnam to these markets.
In addition, the US imposition of a 25% tax on imported steel and aluminum has caused steel and aluminum exporting countries to increase their export market share to other countries (including Vietnam). The increased risk of competition from imported steel and aluminum may cause Vietnamese steel and aluminum manufacturing enterprises to face difficulties in the domestic market.
In the long term, US steel and aluminum import orders from Vietnam are expected to decrease because the cost of Vietnamese steel and aluminum exported to the US after the imposition of tariffs will be higher, increasing the competitiveness of domestic US producers.
Madam, what scenarios and solutions do we need to adapt flexibly and ensure aluminum and steel export activities?
- In the context of the new US tax policy on steel and aluminum imports, to promote exports and achieve growth targets, it is necessary to continue implementing market diversification policies and improving competitiveness for export goods.
Maintain and develop key markets, traditional markets and effectively exploit markets that have signed FTAs with Vietnam (CPTPP, EVFTA, UKVFTA...). At the same time, increase exploitation of potential markets (Russia, India, Middle East, Africa...).
Improve competitiveness and export of products. Implement many support measures to improve the competitiveness of enterprises to meet export requirements.
Provide market information, improve export promotion efficiency.
Disseminate and provide guidance on the content of commitments and how to take advantage of incentives from Free Trade Agreements (FTAs) to businesses, industry associations and local specialized management agencies in many forms, directly and online, convenient for searching and exploitation.
Proactively grasp information, coordinate, and support businesses to effectively respond to trade defense cases abroad, protecting the legitimate interests of Vietnamese businesses.
What recommendations do you have for domestic steel and aluminum production and export enterprises?
- Domestic steel and aluminum manufacturing and exporting enterprises should promptly acknowledge and estimate the difficulties caused by the US's 25% increase in steel and aluminum import tax. From there, they should recommend the State to introduce support policies and create favorable conditions for production and export activities.
Closely follow the market and implement solutions to optimize production costs, reduce prices, increase profits, and diversify export markets, implementing the strategy of "not putting all eggs in one basket" to avoid possible risks from the import market.
