PROMOTE RESPONSE TO ALUMINUM INDUSTRY

PROMOTE RESPONSE TO THE ALUMINUM INDUSTRY
Facing difficulties in both domestic and foreign markets, Vietnam's Aluminum industry has been proactive in offering solutions to overcome difficulties.

Double difficulty ALUMINUM INDUSTRY

According to statistics from the Vietnam Aluminum Association, in the first 6 months of 2020, the Covid-19 epidemic has caused a great impact on the trading activities, trade and import-export of the aluminum industry. Specifically, the first 6 months of 2020 of the domestic aluminum industry reached 280,000 tons, down about 40% (equivalent to about 150,000 tons) compared with the average pre-service output. At the peak of the translation, most businesses were only in moderation. As a result, the number of jobs decreased by 40%, equivalent to about 13,000 jobs. The employee's income is reduced by 30-50%. Having a great impact on the employees' life. The situation of job leave due to epidemics and labor fake cutting takes place continuously causing disturbance to the labor market. In particular, from the second half of March to the beginning of May 2020, the demand for construction that needs aluminum has decreased sharply. The output of inventories at the beginning of May 2020 is very large, about 62,000 tons, equivalent to 4,500 billion VND. Meanwhile, the State's supportive policies still face many difficulties. Most of it is because aluminum enterprises are not supported by the State. The reduction in interest rates is negligible. The 0% interest rate preferential loan package is complicated, the loan limit is too low for the needs of the business. Moreover, there is no uniformity in implementation plan among banks. Currently, although the aluminum market has basically recovered. Aluminum production of factories has reached 80% of the average output in 2019. The situation of contraband goods, trade fraud, poor quality goods, origin ... is complicated. Besides, the domestic aluminum industry also faces many commercial lawsuits in other countries.

Proactively respond to the difficulties of the aluminum industry

The domestic aluminum industry has actively planned to respond to the difficulties both at home and abroad. Since 2018, China's aluminum dumping situation. The representative of the domestic aluminum industry has submitted a dossier to the Ministry of Industry and Trade to request the application of anti-dumping measures with some aluminum products imported from China. By September 2019, the Ministry of Industry and Trade issued a decision to apply official anti-dumping measures on some aluminum products originating from China. Thep Vietnam Aluminum Association, the Chinese enterprises work. Dumping has been taking place for many years on aluminum profiles with HS 7604. The peak is from 2017 to now. This situation caused serious damage to most of the factories. aluminum profiles in water. This leads to 2019 average operating capacity. the factory has reached less than 50% of its designed capacity. Lots of production plans stagnated, causing the aluminum business to manufacture. heavy losses. Thousands of workers lost their jobs. Application of anti-dumping measures for aluminum products HS 7604 of the Ministry of Industry and Trade. is completely correct and consistent with the State management principles on foreign trade regulations. Pursuant to Article 4 of the Foreign Trade Law “guarantees the legitimate rights and interests of the State. traders of all economic sectors; promote the development of domestic production and export, in association with import management ”and WTO rules.

Evaluate the general situation
For the export market, to respond to the lawsuits of countries on trade defense and tax evasion. The Association member businesses have actively coordinated. providing information to support the Trade Defense Department in its investigation. At the same time, every quarter, the Department of Trade Defense also has early warning information for products at risk of being investigated for trade defense and tax evasion. The Vietnam Aluminum Association also regularly follows up, providing warning information about the list of products in the aluminum industry at risk of trade defense investigation. tax evasion for domestic aluminum producers. Thereby, aluminum businesses tend to adjust their export activities to the relevant market. Source: Vietnam Aluminum Association Do Thanh Aluminum with Grando brand has been and will become a solid behind promoting and bringing Vietnamese aluminum firmly in the domestic and international markets.