The Vietnam Steel Association (VSA) has warned Vietnam’s domestic steel industry could be driven into bankruptcy if the State does not immediately intervene.
The association blames the industry’s dire state on the real estate market’s extended freeze and the dominance of Chinese steel in Vietnam.
Businesses are also grappling with the anti-dumping taxes several importing countries have imposed on steel.
VSA businesses have produced 2.26 million tonnes of construction steel during the first half of 2013, down 2.08 percent from the same period last year.
As of June 30, almost 326,000 tonnes of this production total had yet to be sold, but businesses are forced to continue production to create jobs for their workers.
In addition, competition from imported foreign steel has pushed prices down VND300–500 per kilo.
Businesses also reported a large amount of imported Chinese alloy steel has been declared as construction steel to dodge tax liabilities and undercut domestic steel producers.