Vietnam's steel exports face EU tax barriers

The European Commission (EC) has just issued Decision EU 2025/1919, officially imposing anti-dumping duties on some hot-rolled steel (HRC) products imported from Vietnam, Egypt and Japan.

Billionaire Tran Dinh Long's Hoa Phat is not subject to anti-dumping tax imposed by the EU on hot-rolled steel coils - Photo: HPG

Vietnamese hot-rolled steel exported to the EU is subject to a 12.1% tax.

This is the result of an investigation that lasted more than a year, initiated in August 2024 following a complaint by the European Steel Association, arguing that cheap steel from outside had caused serious damage to the domestic manufacturing industry.

According to the decision, Vietnam's hot-rolled steel exported to the EU will be subject to a tax rate of 12.1%. However, Hoa Phat Group, including Hoa Phat Dung Quat Steel Joint Stock Company and its member companies such as cold-rolled steel, Hoa Phat Steel Sheet, Hoa Phat Steel Pipe in Hung Yen, Binh Duong and Da Nang, is completely exempted from anti-dumping tax.

The 0% tax rate helps Hoa Phat maintain its competitive advantage in the European market, while creating conditions for downstream businesses using the group's HRC to confidently export to the EU without facing barriers regarding the origin of raw materials.

On the contrary, Vietnam's largest producer of hot-rolled steel, Formosa Ha Tinh , and many other businesses still have to pay a 12.1% tax, facing the risk of narrowing market share in Europe.

According to analysis, Hoa Phat's tax exemption reflects the enterprise's management capacity and international legal experience.

During the investigation, the group cooperated closely with EU authorities, proactively providing full data, proving that the pricing mechanism was not dumping.

At the same time, Hoa Phat has optimized costs from raw materials to production, improved product quality, met international standards at reasonable prices...

EU tightens protection

Not only Vietnam, but also large Japanese steel corporations such as Nippon Steel, JFE Steel, and Daido Steel are also subject to very high taxes, up to nearly 30%, while Tokyo Steel is subject to 6.9%. Egypt is subject to a general tax of 11.7% for all products.

This move shows that the EU is increasing its trade protection policy, especially with countries with large output and strong price competition.

According to steel industry businesses, with the new decision, Vietnam's hot-rolled steel shipments to the EU will lose their price advantage.

Meanwhile, Vietnam's steel exports were already dismal in the first 6 months of 2025, reaching only 5.66 million tons, down 13% over the same period; turnover decreased even more sharply, by 22.5%, to 3.7 billion USD. The main reasons were global oversupply, falling international steel prices and increasing trade barriers from major markets.

Therefore, economic experts say that the Vietnamese steel industry needs to change its strategy and cannot rely solely on the advantage of low prices.

Businesses are forced to improve quality, invest in technology, diversify products and expand markets outside the EU and the US...

TRUST

Source: https://tuoitre.vn/xuat-khau-thep-viet-nam-gap-them-rao-can-20250927135205026.htm