Vietnam Denies Steel Price Stabilisation Fund Proposal
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Vietnam Denies Steel Price Stabilisation Fund Proposal

VNS reported that Vietnam’s Ministry of Industry and Trade has denied rumours that it proposed the establishment of a State stabilisation fund to

VNS reported that Vietnam’s Ministry of Industry and Trade has denied rumours that it proposed the establishment of a State stabilisation fund to cope with the sudden increase in steel prices that has impacted many businesses. Vietnam’s Deputy Minister of Industry and Trade Do Mr Thang Hai told that “From the end of 2020 until now, the price of raw materials for steel production has soared, causing a sudden increase in the price of steel products, affecting construction enterprises and their ongoing projects. The MoIT does not propose a stabilisation fund for steel prices.”

Earlier, experts and steel manufacturing enterprises came out as opposed to such a fund. A steel industry expert Mr Nguyen Van Sua told “A steel price stabilisation fund was incompatible with the principle of price management in a market economy because steel is not a commodity managed by the State. As steel prices increased due to the world price level, a stabilisation fund is not suitable.”

Economist Mr Ngo Tri Long said “The steel market has been competitive since 2012 and there is no reason to use the tools of the State for this market. Instead, to cool down steel prices, indirect tools such as taxes and trade should be used. Steel is not listed as a good subject to price stabilisation by law, so a proposal to build such a fund was not suitable.”

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