Vietnam slaps anti-dumping tax on Chinese aluminum

By Hung Le   June 5, 2019 | 03:19 pm GMT+7
Vietnam slaps anti-dumping tax on Chinese aluminum
Aluminum ingots are piled up at a storage area at Qingdao Port, Shandong, China. Photo by Reuters/Fayen Wong

The Ministry of Industry and Trade has announced a temporary anti-dumping tariff starting Wednesday on aluminum products originating from China.

After a five-month investigation into the extent to which aluminum imports from China hurt domestic manufacturers, the ministry decided to slap tariffs of 2.46-35.58 percent for 120 days.

The tax applies specifically to aluminum and non-alloy aluminum products in the form of bars, rods and others used to make doors, walls, storages facilities, interior and exterior decoration, and frames for machinery and buildings.

The tax rate varies depending on the Chinese producer. The ministry has named 16 Chinese firms as dumping in Vietnam.

The aluminum products from China are currently not taxed since the two countries are members of the ASEAN–China Free Trade Area, which abolished most tariffs between the 10 member states of the Association of Southeast Asian Nations and China. 

At the end of last year Austdoor, Song Hong Aluminium, Tung Yang, and MienHua, which account for a combined 31.5 percent of domestic output, filed complaints that Chinese aluminum was being dumped in Vietnam, harming domestic production.

After a five-month preliminary investigation the ministry found that Chinese aluminum was indeed sold in Vietnam at very low prices, in some cases lower than production costs.

The Vietnamese aluminum industry suffered heavy losses as a result, with most producers reporting losses and many stopping production and laying off large numbers of workers, it said. 

The ministry said it would continue to inspect, hold public consultations with all sides to determine how stakeholders are affected and expand or modify the anti-dumping duty list in line with findings.  

Last year Vietnam imported 62,000 tons of extruded aluminum bars from China, nearly double the 2017 figure, excluding aluminum imported for its export supply chain.

Aluminum imports from other countries have decreased over the years, falling to just 5,000 tons by 2018, the ministry said.

In January this year Reuters reported that U.S. aluminum producers sought protection against Chinese imports, accusing China Zhongwang Holdings Ltd and its affiliates of evading U.S. anti-dumping and anti-subsidy duties by shipping aluminum products through Vietnam.

 
 
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