The Vietnam Steel Association (VSA) have objected to the 3% export tariff that is being imposed by the Ministry of Finance (MOF) on steel products in the country. They believe that the steel tariff is unfair and will unduly affect the steel industry in the country.

The MOF argue that the export tariff should be imposed because the steel industry is benefiting from low electricity rates, which have in turn enabled them to turn over millions in profit. The ministry claim that this profit comes mostly from the steel export business, thus they wish to claim some money back from this.

The 3% tax levy would be imposed on;

• Cold Rolled Steel
• Structural Steel
• Welded Steel Pipes
• Coated Colour Corrugated Iron
• Metal Plated Corrugated Iron

The VSA countered however, stating that the electricity costs account for a tiny percentage of the cost price of steel products, meaning they bear little effect on the profit or loss on these products.