Strategic Duty Realignment Targets Asian SteelGiants
Vietnam has implemented targeted revisions to itspreliminary anti-dumping duty structure on imported steel products,specifically hot-rolled coils and metallic-coated steel from China and SouthKorea. The adjustments, which maintain the overall duty framework establishedearlier this year, introduce company-specific modifications that reflect a morenuanced approach to trade enforcement. Most notably, Shanghai ShijingInternational Trading Co and ST. International, both identified as relatedtrading entities of South Korean steel producer KG Dongbu Steel Co, have beenreclassified to receive zero-duty treatment. This represents a significantshift from their previous position under the general 15.67% tariff rate appliedto other South Korean exporters. The recalibration demonstrates Vietnam'sevolving strategy to balance domestic industry protection with recognition ofspecific supply chain relationships within the regional steel trade ecosystem.
South Korean Exporters Gain PreferentialTreatment
The duty revision provides substantial relief to specificSouth Korean trading companies that had previously been subject to blankettariffs. By recognizing Shanghai Shijing International Trading Co and ST.International as related entities to KG Dongbu Steel Co, Vietnamese authoritieshave effectively created a duty-free channel for these specific trade flows.This adjustment suggests a more sophisticated understanding of corporaterelationships within the international steel trade, potentially acknowledgingthe integrated nature of modern supply chains that span multiple countries. Thezero-duty designation for these companies stands in stark contrast to thebroader 15.67% duty that remains in place for other South Korean exporters,creating a significant competitive advantage for the exempted firms. Thistargeted approach may reflect diplomatic considerations or recognition ofspecific supply patterns that Vietnamese authorities deem less threatening todomestic producers.
Chinese HRC Exporters Face Continued TradeBarriers
While South Korean traders received some relief, therevisions maintained substantial pressure on Chinese hot-rolled coil exporters.Win Faith Trading Limited has now been explicitly identified as a relatedtrader to Chinese steel giant Baowu Group and assigned a 27.83% duty rate. Thisrate, which applies to all other unspecified Chinese traders as well,represents the upper end of Vietnam's anti-dumping duty range for Chinese HRCproducts, which spans from 19.38% to 27.83%. The continued application of significantduties on Chinese steel imports reflects Vietnam's ongoing concerns about thepotential for market disruption from the world's largest steel producer. Thesemeasures target Chinese HRC products with widths not exceeding 1,880mm,classified under harmonized system (HS) codes 7208, 7211, 7225, and 7226,representing a substantial segment of the flat steel import market.
Broad Product Coverage Signals ComprehensiveProtection Strategy
The scope of Vietnam's anti-dumping measures reveals acomprehensive approach to shielding domestic steel producers from perceivedunfair trade practices. For metallic-coated steel products, the duties targetitems classified under HS codes 7210, 7212, 7225, and 7226, which includegalvanized steel and other coated flat products widely used in construction,automotive, and appliance manufacturing. The duties on these products reach upto 37.13% for Chinese imports and 15.67% for South Korean imports, representinga significant price barrier for foreign suppliers. The HRC duties similarlycover a broad range of products under multiple HS codes, indicating Vietnam'sintention to provide wide-ranging protection for its developing steel industryacross various product categories and applications, rather than focusing onisolated market segments.
Temporary Nature of Measures Suggests StrategicFlexibility
A notable aspect of Vietnam's anti-dumping actions is theirexplicitly temporary nature, with both sets of duties currently valid for only120 days unless extended. This limited timeframe, established when the dutieswere initially imposed in February and April 2025, suggests that Vietnameseauthorities are taking a cautious, flexible approach to trade protection. Thetemporary designation allows Vietnam to assess the market impact of thesemeasures before committing to longer-term trade barriers, potentially providingleverage in any future negotiations with affected countries. It also givesdomestic steel producers a defined window of protection during which they canadjust their operations and competitive positioning. The possibility ofextension beyond the initial 120-day period remains open, creating uncertaintyfor foreign exporters while giving Vietnamese officials time to evaluate theeffectiveness of their trade policy.
Regional Trade Dynamics Reflect GrowingProtectionism
Vietnam's adjustments to steel import duties reflectbroader trends in Southeast Asian trade policy, where countries with developingindustrial bases increasingly employ trade remedies to shield domesticmanufacturers from regional competition. As Vietnam continues to build itssteel production capacity, these protective measures aim to create space forlocal producers to establish stronger market positions. The targeted nature ofthe duties, with different rates for China and South Korea, also reveals Vietnam'snuanced approach to managing relationships with major trading partners. Byimposing higher duties on Chinese products compared to South Korean ones,Vietnam appears to be calibrating its trade policy to reflect differentperceived levels of competitive threat, possibly influenced by factors beyondpure economic considerations, including broader geopolitical relationships andregional trade dynamics.
Implications for Steel Supply Chains andPricing
The revised duty structure will likely trigger adjustmentsthroughout regional steel supply chains as affected companies reassess theirexport strategies to Vietnam. For South Korean entities now enjoying zero-dutystatus, this represents an opportunity to increase market share, potentially atthe expense of both Chinese competitors and other South Korean exporters stillsubject to duties. Chinese exporters, facing continued high tariffs, may needto absorb these costs, seek alternative markets, or explore different productcategories not covered by the duties. For Vietnamese steel consumers,particularly in manufacturing and construction sectors, these duties couldresult in higher input costs if domestic producers raise prices in response toreduced import competition. The ultimate impact on Vietnam's steel market willdepend on how domestic production capacity responds to this protectiveenvironment and whether the temporary duties eventually become permanentfixtures of Vietnam's trade policy landscape.
Key Takeaways:
* Vietnam has revised its anti-dumping duties on steelimports, granting zero-duty status to Shanghai Shijing International Trading Coand ST. International as related traders of South Korea's KG Dongbu Steel Co,while maintaining duties of up to 37.13% on Chinese imports and 15.67% on otherSouth Korean steel exporters.
* Win Faith Trading Limited has been specificallyidentified as a related trader to Chinese steel giant Baowu Group and assigneda 27.83% duty rate, the same rate applied to all other unspecified Chinesetraders, reflecting Vietnam's continued concerns about potential marketdisruption from Chinese steel imports.
* Both sets of anti-dumping duties remain temporarymeasures valid for only 120 days unless extended, covering products undermultiple HS codes including 7208, 7210, 7211, 7212, 7225, and 7226,demonstrating Vietnam's comprehensive approach to protecting its developingsteel industry.
