QCVN20 “makes it difficult” for stainless steel enterprises?

Continuing to wait for QCVN20 to be removed, many stainless steel enterprises expressed deep concerns about their “fate” in the coming time.

“Circular 15/2019 / TT-BKHCN providing QCVN20: 2019 / BKHCN (QCVN20) national technical regulations on stainless steel requires domestic stainless steel manufacturers not to apply basic standards for imported stainless steel raw materials, but “floating” imported products such as pipes, boxes, household appliances, … stainless steel without any application of any standards. This regulation risks the death of domestic stainless steel producers, even with brands that have been in existence for more than 20 years“. That is the concern of Mr. Nguyen Hung Manh, Director of Hanoi Tuan Dat Metal Co., Ltd.

According to Mr. Manh, Tuan Dat Metal Co., Ltd. has existed in the market for nearly 20 years, building a reputation with customers across the country, along with many other famous enterprises. However, during the process of the Directorate for Standards, Metrology and Quality – BKHCN (TCĐLCL) drafted the national technical regulation on stainless steel QCVN20, all stainless steel producers in the country were not allowed to participate. , contribute ideas to ensure objectivity as well as protect the interests of manufacturers. Only when the Regulation was promulgated and the Circular took effect, the new business was shocked.

Facing this situation, many stainless steel manufacturers also expressed deep concerns about their “fate” in the future. Since Circular 15 took effect, many companies have been in difficult circumstances. Typically at Tuan Dat Metal Co., Ltd., the current production scale per month is about 1000 tons of stainless steel pipes and boxes, of which J1 accounts for 50% of the total output. Starting from June, the company’s output has decreased by about 30%, expected a drop of 40-45% in July due to the gradual loss of the J1 market. Therefore, the company’s plan in the future will have to suspend 50% of the production line and temporarily lay off 50% of the workers at the factory.

“Capital turnover of the business was in deficit, leading to financial imbalance, we can only maintain for 6-8 months. For larger companies each month from 3000-5000 tons of steel, more workers work, if they have to stop working, the damage is immeasurable, not to mention a large number of unemployed workers. do not know where to expect. Facing this market purification, it is likely that only about 20-30% of stainless steel producers can survive. If the regulations are not removed in time, the risk of business closing down is very high”, said the company director.

It is known that all stainless steel manufacturers in Vietnam have applied a strict production process according to ISO 9001: 2015, undergone the process of branding, market research to produce products. optimal products to serve customers. On the other hand, all the output products of the domestic factories have a clear origin, fully certified factory quality, some products even meet the American quality standard ASTM A554, JIS standards of Japan.

As for imported finished products, state management agencies skip the product verification stage, they do not have to apply QCVN20 Standards, so they cannot control the quality. So how to protect consumers against poor quality imported goods?

Besides, some stainless steel grades are of much inferior quality, such as item codes 410, 405, 409, .. they meet QCVN20 and are on the list of goods allowed to be imported into Vietnam, while the codes Products J1, J2, J3, J4 are of much higher quality, accounting for about 40% of the total output of stainless steel producers but are in the list of not allowed to be imported due to not meeting QCVN20. The detailed chemical composition index of the products according to the manufacturer’s establishment standard.

Enterprises have submitted recommendations to the Directorate for Standards, Metrology and Quality, to facilitate solving difficulties for businesses, especially in the context that Vietnam has just experienced the COVID-19 epidemic and this epidemic is still occurring. Complicated variables in many countries around the world. Many export orders were canceled, supply chain was broken, input materials were not easy to serve production and business.

Recently, representatives of stainless steel businesses have sent full information to the General Department of Standardization, metrology and quality of stainless steel imported output according to J1 standards; J2; J3; J4 entering Vietnam in 2019 and the first 6 months of 2020; export contract, customs declaration of goods J1; J2; J3; J4 to Korea and some other European countries. Standard comparison table, chemical composition of standard stainless steel J1; J2; J3; J4 and TCVN: 409; 410; 430.

Businesses added that if South Korea or some European countries still accept the manufacturer’s basic standards, it is reasonable for Vietnam to “exclude” from the list of QCVN 20: 2019 / BKHCN. ?

Recently, at the regular press conference of the Ministry of Science and Technology, Mr. Nguyen Hoang Linh, Deputy Director General of TC, QC, said that there were 8 issues related to QCVN 20: 2019 / BKHCN. The General Department and the drafting board and related units have participated in answering. The only problem still remains, which is the petition to allow the approval of steel products according to the manufacturer’s own self-announced or self-announced manufacturer standards. While, according to general practice, all national regulations of the countries in the world are promulgated with the panel of experts, technical boards, relevant parties representing manufacturers and importers. , representative for consumers, representatives of regulators … discuss together before making a decision with a high harmony and consensus nature.

Mr. Linh also emphasized that some recommendations are continuing to study when evaluating a reasonable point: There are products or using raw materials from stainless steel to make finished products that we do not control. By cutting, poor quality products are still imported into Vietnam to consumers.

Although the QCVN 20: 2019 / BKHCN has taken effect, however, because the COVID-19 epidemic has significantly affected the production and business processes of enterprises, the General Department of Standards, Quality and Quality has proposed a proposal. The Ministry of Science and Technology considers extending the time and effect of implementing QCVN 20: 2019 / BKHCN.

Creating a fair and healthy business environment is essential at this time. QCVN20 regulations, if implemented, need to apply to all goods, including domestically manufactured and imported finished products. If it is not very difficult to ensure the quality of goods, consumers will lose the opportunity to use good products, while businesses are dying because of the loss of the market.

“On the other hand, if the standard applies to all goods, it leads to a cumbersome, expensive, costly human resource as well as costly apparatus“, businesses wonder.

Recently, the Vietnam Chamber of Commerce and Industry (VCCI) also submitted a written request to the Ministry of Science and Technology to study the opinions of stainless steel enterprises, especially the impact of Circular 15 on domestic production. .

Document signed by Mr. Vu Tien Loc, Chairman of VCCI, to Minister of Science and Technology Chu Ngoc Anh stating: Policy objectives to promulgate the National Technical Regulation on stainless steel (Circular 15/2019 / TT-BKHCN) is necessary, to ensure the quality of stainless steel used in Vietnam, avoid the production and import of stainless steel of poor quality, being contaminated with active ingredients, not ensuring safety for user.

However, the content of this Regulation is currently only applicable to raw stainless steel (plates, bars, rods, wire …), not to stainless steel in boxes and finished products (such as water tanks. , home appliances, furniture …) affected a number of domestic manufacturing firms.

For enterprises using stainless steel raw materials to process and manufacture other products, the input materials must meet the Code while enterprises importing stainless steel in the form of boxes or importing finished products do not need meet standards.

This causes domestically produced goods to meet higher requirements than imported goods of the same type and become less competitive than goods from other countries.

VCCI also said that the promulgation of Technical Regulations, although necessary, needs a suitable roadmap and solutions for many businesses to know about this policy change.

“According to the reflection of many businesses, especially the group of enterprises using stainless steel or commercial enterprises …, businesses lack information about policy changes to be proactive in their business plans. business, causing great damage”, emphasized the document of VCCI.

Therefore, VCCI requested the Ministry of Science and Technology to study the opinions of enterprises, especially the impact of the Regulation on domestic production. In case of necessity, the Ministry of Science and Technology is requested to, based on Article 153.1.b of the Law on Promulgation of Legal Documents, decide to cease the validity of Circular 15/2019 / TT-BKHCN to adjust fit.