Steel Industry Reports Negative Growth in 2008
Vietnam’s steel industry reported growth of -8 per cent in 2008 with steel sales of some 4.1 million tons, 300,000 tons lower than last year, state media said, citing Nguyen Tien Nghi, vice chairman of the Vietnam Steel Association.
Nghi said in the context that purchasing power has not recovered, the increase in the value added tax (VAT) to 10 per cent from 5 per cent since early 2009 is causing a number of difficulties for steelmakers.
“Steel enterprises still keep prices unchanged with an aim to recover purchasing power. Meanwhile, the tax of 10 per cent will push up steel prices by VND500,000/ton, which will make consumers hesitate,” he said.
Facing the situation, the association has proposed the Ministry of Industry and Trade to consider delaying the VAT increase in the next six months at the least in a bid to improve the current flat purchasing power. (Youth, Vietnam Economic Times)
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