This document discusses designing a tariff structure for Vietnam's steel import substitution industry. It notes that some steelmaking processes currently have overcapacity while others rely on imported materials. It recommends setting a tariff structure that reduces overcapacity through market forces, provides temporary protection for new steel mills, and increases predictability for investors. The structure should move toward free trade by 2015 while maintaining a cascading tariff reduction schedule based on industry conditions.
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Tariff Design
1. Designing Tariff Structure for an Import Substitution Industry: The Case of Steel Nozomu Kawabata Tohoku University Sep. 9 2003
2. Production Structure of the Vietnamese Steel Industry Blast Furnace Long Rolling Mill Hot Strip Mill Cold Rolling Mill Galvanizing Plant Pipe Fitter Steelmaking Plant Very Small Over Capacity Over Capacity Over Capacity Customers in Vietnam Very Small Protection Protection No Capacity Billet Imports Sheets Imports Protection Sheets Imports
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4. Governmental Policy until Now for Long Products (AFTA and non-AFTA) Import prohibition was removed Unclear!
Today I make a presentation about the tariff design for the Vietnamese steel industry. Steel industry is one case but I think it will be a reference for other import substitution industries.
