In the first five months of 2025, imports of wide-width hot-rolled coil (HRC) from China into Vietnam skyrocketed, increasing 12 times compared to the same period last year. This unexpected surge raises concerns over potential circumvention of anti-dumping duties and the imbalance in trade structure, which could negatively impact the domestic steel industry.

Are Imports Rising Due to “Technical Loopholes” in the Tax Scope?

According to the latest statistics, Vietnam imported over 430,000 tons of hot-rolled steel with a width of ≥1,900 mm from China in the first five months of 2025. Notably, 181,000 tons were imported in May alone, representing a 25-fold increase over May 2024.

Most of the imported products were 2,000 mm wide HRC, which are not covered under Vietnam’s anti-dumping duties issued on February 21, 2025, which only apply to products with widths up to 1,880 mm. This has led importers to shift toward wider coil sizes to avoid tariffs — even though technically, these products are nearly identical to the taxed versions.

Market Distortion and Increased Pressure on Domestic Production

Imported wide-width HRC is being sold at an average price of USD 534/ton (as of May 2025), approximately 6% lower than the same period last year. Meanwhile, Vietnamese producers face higher operational, production, and investment costs, resulting in a loss of price competitiveness.

If this trend continues unchecked, Vietnam’s trade defense policies may become ineffective, causing substantial harm to local steel manufacturers who are actively investing in advanced technologies, quality standards, and environmental compliance.

Proactive Response and Capacity Building Needed

In response to these developments, the Trade Remedies Authority of Vietnam has requested the General Department of Customs to enhance inspection and monitoring of wide-width HRC imports — with a particular focus on technical specifications and HS code accuracy — to prevent false declarations or trade fraud.

Steel enterprises in Vietnam are also advised to:

• Closely monitor market trends and report any irregular activities
• Invest in technological upgrades, cost optimization, and product quality improvement
• Stay updated on trade defense policies, import duties, and international technical standards

Source: VietnamNet