In 2025, Vietnam made a bold move to protect its domestic steel industry by imposing significant anti‑dumping tariffs on imported steel products. The Ministry of Industry and Trade (MoIT) announced temporary duties ranging from 19.38% to 27.83% on hot‑rolled coil (HRC) steel from China.
Meanwhile, coated (galvanised) steel imports from both China and South Korea are now subject to even steeper tariffs, reaching as high as 37.13% and 15.67%, respectively.
These trade‑defence measures reflect mounting pressure on Vietnam's steel producers, who accuse foreign exporters of dumping cheap steel into the local market and undermining domestic capacity. But what do these tariffs mean for Vietnam's construction, manufacturing, and export sectors, and how likely are they to reshape global steel flows? This article unpacks the latest developments, impacts, and potential future scenarios.
Key Takeaways
- Vietnam has imposed significant anti-dumping tariffs on hot-rolled coil (HRC) and coated/galvanised steel to protect local producers.
- Tariff rates range from 15.67% to 37.13%, affecting imports from China and South Korea.
- Domestic steel manufacturers stand to benefit, while importers and downstream industries may face higher costs.
- Effective customs enforcement and compliance are critical to prevent misreporting or tariff evasion.
- Businesses can leverage VALO Vietnam to access reliable domestic suppliers and navigate the evolving steel market efficiently.
Table of Contents
- What Are Vietnam’s Steel Tariffs?
- Key Tariffs Imposed by Vietnam
- Why Is Vietnam Doing This?
- Impact of the Tariffs: Who’s Affected?
- Potential Risks and Challenges of Vietnam's Steel Tariff
- Future Outlook: What’s Next for Vietnam’s Steel Sector
- Impact of Vietnam Steel Tariffs and How VALO Vietnam Can Help
- FAQs: Vietnam Steel Tariffs 2025
What Are Vietnam’s Steel Tariffs?
At its core, the “Vietnam steel tariffs” are trade‑defense measures, specifically, anti-dumping duties, designed to counteract the import of steel sold below “fair market value.” When a country’s domestic industry can demonstrate that foreign exporters are dumping (i.e., selling at unfairly low prices) and that this is materially harming local producers, the government can impose duties to restore fair competition.
Read more: Understanding Steel Import Tariffs: A Comprehensive Guide for Businesses
In Vietnam’s case, the MoIT initiated investigations into key steel products after domestic producers raised alarm over surging imports. These investigations culminated in temporary anti‑dumping duties, as well as longer-term decisions, aimed at curbing the influx of cheap steel and protecting the domestic market.
Key Tariffs Imposed by Vietnam
1. Hot‑Rolled Coil (HRC) Steel from China
- In February 2025, Vietnam’s MoIT announced temporary anti‑dumping duties on certain hot-rolled coil (HRC) steel products from China, ranging from 19.38% to 27.83%.
- These duties came into force around March 8, 2025, and were designed to run for 120 days, giving authorities time to assess impact and finalize the investigation.
- Notably, in July 2025, Vietnam made this decision more durable: the country imposed five-year anti‑dumping duties on certain Chinese HRC products, with rates between 23.1% and 27.8%.
- The scope of the duty covers HRC with specific technical parameters: flat-rolled steel or alloy, thickness from 1.2 mm to 25.4 mm, and widths not exceeding 1,880 mm.
- Importantly, authorities have raised concerns about mis‑classification: in mid-2025, the MoIT ordered tighter customs checks on HRC imports wider than 1,880 mm, suspecting that some importers deliberately use wider coils to evade higher tariffs.
2. Coated / Galvanised Steel from China & South Korea
- In April 2025, Vietnam issued provisional anti‑dumping duties on certain coated (galvanised) steel products, under Decision No. 914/QĐ‑BCT.
- The highest duty rate: 37.13% for Chinese coated steel, and 15.67% for South Korean products.
- These provisional duties came into effect on April 16, 2025, for a 120-day period while the deeper investigation continued.
- Later, in August 2025, Vietnam’s MoIT finalized the decision: under Decision No. 2310/QĐ‑BCT, the anti‑dumping duties were officially confirmed.
- The investigation was launched in mid-2024 following a petition by five Vietnamese steelmakers — Hoa Sen Group, Nam Kim Steel, Phuong Nam Steel, Dong A Steel, and China Steel & Nippon Steel Vietnam.
- Authorities determined that dumping had taken place, and that it had caused material injury to domestic coated steel producers.
- Certain exporters were exempted: for example, Chinese firms Boxing Hengrui New Material and Yieh Phui Technomaterial did not face the duty; in South Korea, POSCO, KG Dongbu Steel, and Dongkuk Coated Metal were also excluded.
Why Is Vietnam Doing This?
Several key drivers underpin Vietnam’s decision to impose these steel tariffs:
1. Protecting Domestic Steel Industry
Vietnamese steelmakers have argued that a flood of cheap imports is undercutting their competitiveness. Local producers claim that some foreign steel is being dumped, sold at prices below cost — putting significant pressure on their margins and market share.
2. Rising Import Volumes & Strategic Risk
Customs data show that imports of coated steel from China and South Korea have surged: in the 12 months to March 2024, they reached ~454,000 tonnes, a 91% year-on-year increase.
3. Revenue Protection on Tax Evasion Risks
The MoIT’s concern is not only about dumping, but possible mis‑reporting or mis‑classification. For example, wide HRC coils (over 1,880 mm) are not subject to the higher tariff, and there are signs importers may be mislabeling products to avoid duties.
4. Long-Term Market Stability
By imposing these duties, Vietnam aims to ensure a level playing field and safeguard its long-term steel capacity. Officials believe that without action, cheap foreign imports could stifle domestic investment and hurt downstream industries.
Impact of the Tariffs: Who’s Affected?
The new duties ripple across the Vietnamese steel ecosystem and beyond. Here’s a breakdown of how various stakeholders are likely to be impacted:
1. Domestic Steel Producers
- Stronger Protection & Market Share Gains: The duties should help shield local producers from low-cost import competition, giving them breathing room to raise prices, expand sales, and protect margins.
- Increased Stability: Long-term duties (e.g., the five-year HRC measures) provide a more stable backstop.
- Pressure to Scale: Domestic mills may accelerate capacity expansion, improve quality, or invest in higher-value products to take advantage of a less aggressively priced import market.
2. Importers & Construction / Manufacturing Sectors
- Higher Import Costs: Firms importing HRC, coated steel, or galvanized products will face higher costs, which may push up the price of construction materials, roofing, and steel inputs.
- Supply Chain Adjustments: Import-dependent businesses may need to re-evaluate steel sourcing strategies, perhaps shifting to different origins, negotiating better terms, or finding local suppliers.
- Potential Slowdown in Infrastructure & Building Projects: If steel input costs rise sharply, this could dampen project margins or delay capital-intensive investments.
3. Foreign Exporters (China & South Korea)
- Reduced Competitive Edge: Exporters from China and South Korea now face significantly higher duties, which may erode their cost advantages in the Vietnamese market.
- Selective Impact: Not all exporters are equally hit, some firms are exempt, so the burden is not uniform.
- Incentive to Challenge or Negotiate: Affected companies may engage in legal or trade remedy processes, request duty reviews, or propose price adjustments to regain market access.
4. State Revenue & Customs
- Increased Duties Collected: Higher tariffs mean more revenue if imports remain, though evasion risk is a concern.
- Regulatory Pressure: Authorities will need to step up customs inspections, classification checks, and enforcement to prevent misreporting.
- Budget Gains: According to some reports, misclassification under prior lax enforcement may have cost the state tens of millions in lost revenue.
Potential Risks and Challenges of Vietnam's Steel Tariff
While the tariffs are a powerful tool, they also come with potential downsides and risks that Vietnam must navigate carefully.
- Over-Protecting Domestic Industry
If duties are too high or prolonged, they could shield inefficient producers and discourage innovation. There’s a risk that local firms may become complacent. - Trade Retaliation or Disputes
Exporting countries may retaliate through legal challenges, diplomatic pressure, or countermeasures. This could escalate into broader trade tensions. - Smuggling and Mis-Classification
As already seen, importers might try to circumvent tariffs by adjusting product specs (e.g., wider coils) or misreporting categories. Continuous enforcement is critical. - Downstream Industry Pain
Higher steel prices could increase costs for construction, automotive, and manufacturing sectors. This may slow downstream growth or push companies to source from elsewhere, possibly reducing domestic demand. - Short-Term Disruption vs. Long-Term Gain
The 120-day provisional duties serve as a stop-gap, but the real test is in how tariffs evolve post-investigation. If final duties are weaker, the protective effect may be limited; if they’re too strong, they could destabilize the market.
Future Outlook: What’s Next for Vietnam’s Steel Sector
Looking ahead, several key dynamics will shape how the situation evolves.
- Monitoring & Enforcement Will Intensify
Given worries about misclassification (especially for wide HRC coils), Vietnam is likely to strengthen customs checks, implement stricter HS‑code verification, and impose tighter inspection routines. - Final Anti‑Dumping Determinations
For coated steel, the MoIT has already confirmed final duties with Decision 2310/QĐ‑BCT. For other products or additional exporters, further investigations and reviews may lead to adjustments, exemptions, or appeals. - Domestic Steel Industry Consolidation & Upgrading
Protected from the worst of dumping pressures, Vietnamese mills may invest in higher-value products (e.g., advanced coated steel, specialty steels) to increase margins and reduce reliance on volume sales. - Import Strategy Shifts
Importers may diversify sourcing to less‑tariffed origins, negotiate long-term contracts, or deepen partnerships with local producers to mitigate cost increases. - Global & Regional Trade Implications
These measures could influence Vietnam’s relationships with major steel players like China and South Korea. They could also signal to other countries that Vietnam is serious about protecting its domestic industry — potentially altering regional trade dynamics.
Impact of Vietnam Steel Tariffs and How VALO Vietnam Can Help
Vietnam’s 2025 anti‑dumping tariffs on steel represent a major move in trade defence policy, signaling the government’s commitment to safeguarding its domestic steel industry. By targeting hot‑rolled coil from China and coated steel from China and South Korea with steep provisional and final duties, Vietnam aims to curb unfair competition, shore up local manufacturing capacity, and secure long-term market stability.
But the road ahead isn’t without challenges. For importers, downstream industries, and foreign exporters, these tariffs mean higher costs, strategic adjustments, and increased scrutiny. For Vietnam’s steel sector, success will depend on effective enforcement, balanced policy design, and the ability to capitalize on protected space to innovate and upgrade.
For businesses looking to navigate Vietnam’s evolving steel market, VALO Vietnam connects buyers directly with trusted local manufacturers, offering transparent sourcing, verified supplier listings, and a streamlined path to reliable steel partners. Explore your options with VALO Vietnam today to optimize sourcing and stay ahead in a dynamic market.
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FAQs: Vietnam Steel Tariffs
1. What products are affected by Vietnam’s steel tariffs?
The tariffs mainly target hot-rolled coil (HRC) steel from China and coated/galvanised steel from China and South Korea, with duties ranging from 15.67% to 37.13%.
2. Why did Vietnam impose these steel tariffs?
The tariffs are anti-dumping duties designed to protect domestic steel producers from unfairly low-priced imports that could harm local industry and destabilize the market.
3. How long will the tariffs last?
Temporary duties initially ran for 120 days, while final duties on HRC steel are confirmed for five years. Coated steel duties have also been finalized but may be reviewed periodically.
4. Who is exempt from Vietnam’s steel tariffs?
Certain exporters are exempt. For example, Boxing Hengrui New Material and Yieh Phui Technomaterial (China) and POSCO, KG Dongbu Steel, and Dongkuk Coated Metal (South Korea) were not subject to duties.
5. How do the tariffs affect importers and the construction industry?
Importers face higher costs, which can increase prices for steel-intensive industries like construction and manufacturing. Businesses may need to adjust sourcing strategies or consider domestic suppliers.
6. How can buyers navigate these changes effectively?
Platforms like VALO Vietnam help buyers connect directly with trusted local manufacturers, providing transparent sourcing, verified suppliers, and a streamlined procurement process.