Trade challenges for Vietnam steel industry

The Vietnamese steel industry is facing significant trade pressures from both international regulatory changes and domestic competition.

In August 2026, the European Commission initiated a consultation on new steel regulations that could tighten protectionist measures. Proposed changes include reducing tariff-free import quotas to 18.3 million tonnes per year and increasing over-quota duties to 50%. A critical “melt-and-pour” rule would require importers to identify the country where steel is first melted and cast. This poses a risk to Vietnamese exports, which may be excluded from quotas if they rely on imported raw materials like billets or hot-rolled coils.

Simultaneously, domestic producers in Vietnam are seeking protection from imports. The Ministry of Industry and Trade launched an anti-dumping investigation into prestressed steel bars imported from China. Following petitions from local companies, the probe aims to determine if Chinese steel is being sold at dumping prices that threaten the domestic manufacturing industry.