On April 30, the Anti-Dumping Commission under Australia’s Department of Industry, Science and Resources announced an investigation into galvanized steel products exported by Vietnam's leading producers Hoa Sen (HoSE: HSG) and Nam Kim (HoSE: NKG), as well as two South Korean companies.

The investigation follows a complaint filed by BlueScope Steel Australia, which alleged that Vietnamese and South Korean companies sold coated steel products in the Australian market at unfairly low prices, causing injury to domestic steel producers.

The period of investigation runs from January 1, 2025 to December 31, 2025. The commission is expected to complete the investigation and submit its report to Australia’s Minister for Industry and Innovation and Minister for Science by October 2, 2026.

The products under investigation fall under tariff codes 7210.49.00, 7212.30.00, 7225.92.00 and 7226.99.00. According to the commission’s report, the estimated dumping margin for Vietnamese exporters is 56.21%.

Shrinking export opportunities

Australia’s move reflects growing protectionism in the global steel industry. For years, Vietnam’s coated steel sector has faced persistent overcapacity and weak domestic demand, forcing producers to rely heavily on exports.

According to broker FPT Securities, Vietnam’s coated steel production capacity during the 2019-2024 period was estimated at 7.4 million metric tons per year, while domestic demand absorbed only around 30% of output.

Vietnam also continues to import coated steel products because some high-grade products cannot yet be produced domestically. Tax incentives have also made imported coated steel, particularly from China, cheaper than local products, intensifying competition in the domestic market.

Since 2023, however, export markets have become increasingly difficult as excess steel supply from China has risen, prompting countries including the United States, Canada, Mexico and Brazil to intensify anti-dumping investigations and impose safeguard measures on imported steel products.

According to Nam Kim, Malaysia and Australia have been among the few relatively favorable export markets for Vietnamese coated steel products.

In Malaysia, Nam Kim is currently subject to a 0% duty on PPGI (pre-painted galvanized iron) and PPGL (pre-painted galvalume) steel products, effective from January 19, 2026 to July 19, 2026. In Australia, both Nam Kim and Hoa Sen have benefited from a 0% anti-dumping duty on GI (galvanized iron) products since August 16, 2017, with the measure scheduled to remain in effect until 2027.

Thanks to those tariff advantages, Australia has become an increasingly important export destination for Vietnamese coated steel producers as markets in the United States and Europe have weakened.

According to Viet Dragon Securities, customs data showed that exports by Nam Kim and Hoa Sen to Europe and North America declined sharply in 2025, while shipments to Australia rose significantly.

Australia’s new investigation is expected to add pressure on the export operations of Hoa Sen and Nam Kim while underscoring intensifying competition in the global steel industry.

As major markets continue to raise trade barriers, Vietnamese steelmakers are likely to face greater challenges in maintaining export volumes, diversifying markets and improving competitiveness to adapt to a prolonged protectionist trend.