News

EVFTA contributes to pushing up steel exports to EU market

12/05/2022    52

Vietnam exported 13.1 million tonnes of iron and steel worth US$11.8 billion to the EU last year last year thanks to the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA), up 32.9% in volume and 124.3% in value compared to 2020.

Most notably, the average export price of iron and steel reached US$901 per tonne, representing a rise of 68.8% compared to statistics from 2020, thereby making the products rank among eight items with an export turnover reaching over US$10 billion.

Nghiem Xuan Da, chairman of the Vietnam Steel Association (VSA), emphasised that the EVFTA has contributed to accelerating the export of several commodities to the EU market, including iron and steel products, adding that local enterprises have moved to take full advantage of the tax incentives brought about by the trade deal.

Aside from the EU market, steel exports to the UK over the past year have also witnessed positive signs thanks to the implementation of the UK - Vietnam Free Trade Agreement (UKVFTA) as of January 1, 2021, with 419,000 tonnes worth nearly US$500 million, up 700% in volume and 1,269% in value.

Moreover, the EU has developed into an export market of approximately US$2 billion for the local steel industry, two years on from the enforcement of the EVFTA, which have proven that local firms have conducted a careful market survey and invested in production activities as part of efforts to meet the high standards set by EU importers.

Specifically, Hoa Phat Dung Quat Steel Joint Stock Company recently signed a contract to export an initial batch of hot rolled coil (HRC) to Italy with a volume of 35,000 tonnes, adding that the company has also received orders for it to export construction steel with a total volume of 720,000 tonnes until May.

Despite a rise in export orders, local firms are still required to learn about the various commitments included in the trade pact as part of efforts to avoid trade remedy cases in the future, said Le Trieu Dung, director of the Trade Remedies Authority under the Ministry of Industry and Trade.

Source: Customs News