Vietnam Floating Glass (VFG), a joint-venture with Japan which accounts for 90% of domestic glass production, is asking the Vietnamese government for protection from imported products.
Commencing pro…
Vietnam Floating Glass (VFG), a joint-venture with Japan which accounts for 90% of domestic glass production, is asking the Vietnamese government for protection from imported products. Commencing production from June this year, the JV has reported 3.5 million sq.m of glass stockpiled, including 1.5 million sq.m of coloured glass, reported Masato Hamakada, the JV general director. Imports from Chinese and other countries in the region at dumping prices have apparently pushed the JV into this impasse. Cost-insurance-freight prices for imports are fluctuating around US$ 2/sq.m, or even less than US$ 1/sq.m in some contracts. The prices are so cheap that importers have bought a large volume to stock for later selling. In the first eight months of the year, over 8 million sq.m were imported and about 2 million sq.m was reportedly smuggled into the country. The price of coloured glass is not subject to government control as the clear glass market has plummeted. At the moment, coloured glass is 30% cheaper than clear glass. VFG has been cutting prices to half of those calculated in its plan but is warning about the bankruptcy likelihood for this US$ 126 million venture unless the government takes protective measures.