Pakistan's steel tax may slow down stadium construction plans in Vietnam

Pakistan's decision to expand sales tax on iron/steel manufacturers may drive up global steel prices, directly impacting construction costs of sports facilities in Vietnam. According to the Federal Board of Revenue (FBR), a 5 Rupee per unit electricity sales tax will be applied to domestic steel manufacturers. This move aims to boost fiscal revenue but creates pressure on the global construction materials supply chain. The Vietnam Football Federation (VFF) is planning to upgrade key stadiums such as My Dinh and Thong Nhat for the AFF Cup 2026 and SEA Games 2027. Steel accounts for about 30% of project material costs, and any price increase could cause budget overruns. Sports experts warn that a 5% surge in steel prices could lead to reduced scale or delays in public sports projects. The Vietnamese government needs to closely monitor market developments and implement effective adjustments to ensure major sporting events are not affected by high raw material costs.