Vietnam Scrap Metal Import & Re-Export 2026: HS 7204 Rules, Hai Phong Ports & Buyer Playbook
Vietnam consumed ~24M MT of crude steel in 2025, with roughly 27% fed by imported ferrous scrap (HS 7204) landing at Hai Phong, Cai Mep, and Phu My. For international traders holding HMS 1&2, shredded, or busheling in Rotterdam, Los Angeles, or Dubai, Vietnam is now a more predictable outlet than China (banned since 2021) and more scalable than the Philippines.
1. Who Buys — the Mill Map
| Mill | Location | Furnace | Annual scrap intake |
|---|---|---|---|
| Hoa Phat Dung Quat | Quang Ngai | BOF + EAF | 3.2M MT |
| Formosa Ha Tinh | Ha Tinh | BOF | 1.8M MT |
| Pomina | Ba Ria–Vung Tau | EAF | 1.1M MT |
| Vietnam Italy Steel (VIS) | Hai Phong | EAF | 0.9M MT |
| Thai Nguyen (TISCO) | Northern | EAF | 0.6M MT |
EAF-heavy mills (Pomina, VIS, TISCO) prefer shredded 211 and HMS 1&2 80:20; BOF integrated mills take busheling and pig iron.
2. Circular 08/2018/TT-BTNMT — What Actually Gets Rejected
- Non-metallic contamination ≤ 1% by weight (stricter than Turkey's 2%)
- Radioactivity < 0.3 μSv/h at container surface
- No sealed containers, no oil-soaked material, no e-waste
- Pre-shipment inspection by SGS, Bureau Veritas, or Intertek mandatory
Containers failing at Hai Phong incur ~USD 3,500 re-export cost plus 45-day demurrage exposure. Book PSI before vessel departure, not after.
3. Landed-Cost Worked Example — HMS 1&2 80:20, Rotterdam → Hai Phong
| Line | USD/MT |
|---|---|
| FOB Rotterdam | 340 |
| Ocean freight (40' HC, ~26 MT) | 42 |
| PSI + docs | 6 |
| Vietnam import duty (0% for HS 7204) | 0 |
| VAT 8% (refundable for licensed importers) | recoverable |
| Port + inland to Hai Phong yard | 11 |
| CIF Hai Phong | ~399 |
Add TUSKO trading margin and mill payment terms (typically LC at sight for first 3 shipments, then 30-day OA).
4. Re-Export Route: Scrap In → Billet/Rebar DDP Out
Many EU buyers use Vietnam as a conversion arbitrage — sell scrap to Vietnamese mills, then buy back billet or rebar under CBAM-eligible origin. Vietnam holds EVFTA duty-free access to the EU for HS 7207 (billets) and HS 7214 (rebar) since 2022.
5. The TUSKO Vietnam Desk
Our Hanoi office handles contract structuring, PSI coordination, mill KYC, and payment escrow for scrap sellers and steel re-buyers. See our Vietnam Electronics & EMS Sourcing 2026 guide for related cluster context and our Thailand Scrap Metal Export (HS 7204) piece for a regional benchmark.
Frequently Asked Questions
Q: Can I ship container-loose HMS to Vietnam or must it be baled? A: Both are accepted, but Hoa Phat and Formosa prefer baled or shredded for handling efficiency. Loose HMS attracts 3–5 USD/MT discount at Cai Mep.
Q: Which port is fastest for clearance? A: Cai Mep (HCMC) clears scrap in 5–7 days on average; Hai Phong runs 7–12 days due to volume. Phu My is fastest for Pomina-bound cargo.
Q: Does Vietnam accept US-origin scrap despite Section 232? A: Yes — Section 232 is a US export policy, not Vietnamese import. US-origin HMS is fully accepted and often preferred for consistent grading.
Q: What's the minimum shipment size mills will contract? A: 3,000 MT (roughly one Handysize parcel) for direct mill sale. Below that, sell to Hai Phong yard consolidators.