According to local newspaper, Vietnam's Ministry of Industry and Trade plans to propose the government increase export tax on steel billets by several percentage points from current two percent to ensure domestic steel production.

The newspaper said that steel billet firms in Vietnam have so far this year exported over 100,000 tonnes of steel billets, key material for steel production, mainly to South Korea, Malaysia and Thailand.

The firms said they were forced to export, as they could not sell the product on the domestic market, noting that the government had lowered the targeted economic growth in an effort to curb inflation, resulting in delay for many construction projects.

The Vietnam Steel Association warned that there could be a shortage of steel following the recent billet exports. According to the association, Vietnam would need four million tons of steel billets this year.