return icon

Policies needed to support Vietnam's steel industry development

Over-reliance on input material imports, small production value and outdated technology were among the major weaknesses of Vietnam's steel industry, said a recent report by the Ministry of Industry and Trade.
Policies needed to support steel industry development hinh anh 1
A worker inspects steel billets at a Viet Duc Steel JSC. steel mill in northern Vinh Phuc province. (Photo: VNA)

The report was part of the ministry's proposed "Strategy for the development of Vietnam's steel industry by 2030, with a vision to 2050", which called for additional governmental policies to support the steel industry.

According to the ministry, Vietnam's production capacity for steel billets stood at 27 million tonnes in 2021, of which 7-8 million tonnes was hot-rolled coil. With the exceptions of only a handful of large steel mills such as Hoa Phat-Dung Quat Iron and Steel Complex, Hung Nghiep Formosa Iron and Steel Complex and Nghi Son Steel, the rest of the country's steel industry was made up of small mills, equipped with outdated machinery and technology. 

In addition, the industry lacked the capacity to meet domestic demand, especially for alloy steel which it has not been able to produce. The only long-term solution is to ramp up investment for the construction of large-scale steel complexes to reduce reliance on imports. 

The ministry's conclusion was that the industry's competitive capacity is limited as its production was marred with energy inefficiency and environmental issues. 

"For the most part, the industry is overly dependent on imports of raw materials including ore, scrap and coking coal, resulting in unstable prices," said the report. 

By the ministry's estimate, Vietnam needs to import around 18 million tonnes of ore, 6-6.5 tonnes of scrap and 6.5 million tonnes of coking coal this year. As prices for said materials remained high, the steel price is expected to climb, hurting both domestic consumption and exports. 

The ministry said the development of Vietnam's steel industry remained a key component in the country's industrialisation effort as a large number of industries including shipbuilding, manufacturing, defence hardware, mining and energy are highly dependent on quality steel. 

By 2030, Vietnam's total demand for steel was projected to reach over 310 billion USD, of which automobiles alone account for 120 billion USD, industrial construction 120 billion USD, railways 35 billion USD and subways 10 billion USD, among others. 

Despite its key role in the country's socio-economic development effort, the industry has not received adequate support, especially from a policy standpoint, due to a lack of tailored and streamlined policies to support its growth, said Minister of Industry and Trade Nguyen Hong Dien.

Dien called for stronger government support for the sustainable and stable development of the industry as well as the country's metallurgy sector with a focus on increasing production of hot-rolled coil, high-quality steel and the establishment of steel megacomplexes.
Source: VNS



NA Standing Committee adopts resolutions on establishment of administrative units

Retail oil and petrol prices fall for fifth consecutive time

Vietnam decided on Thursday to further lower retail prices of oil and petrol on Thursday, the fifth consecutive time since late June.

Vietnamese Gov’t issues national strategy to combat new cyber security challenges

Deputy Prime Minister Vu Duc Dam has ratified the national cyber security strategy in response to cyberspace challenges till 2025 with a vision towards 2030.

Vietnam to import vaccines and drugs to treat monkeypox

Drugs containing the active ingredients Tecovirimat, Brincidofvir, Cidofovir, and Probenecid are those recommended by WHO.

Finland third EU country to suspend recognition of Vietnam’s new passports

The embassy of Finland in Hanoi said the reason for the non-recognition is due to the lack of place of birth on the new passports.

Miss World 2021 Karolina Bielawska arrives in Vietnam

Reigning Miss World Karolina Bielawska arrived in Vietnam on August 10 as a special guest of the finale of Miss World Vietnam 2022 slated for August 12 evening.

VND207 trillion worth of property bonds to fall due in 2023-2024

Bad debt in the real estate sector is projected to surge as property bonds worth over VND207.8 trillion will fall due in 2023 and 2024.

More than 300 businesses attend ASEAN Online Sale Day 2022

ASEAN Online Sale Day 2022, part of activities marking the 55th founding anniversary of the Association of Southeast Asian Nations (ASEAN), kicked off on Monday, drawing more than 300 businesses from the region.

Vietnamese steel faces more trade remedy lawsuits

The Mexican Secretariat of Economy has announced an anti-dumping investigation into cold-rolled steel imported from Vietnam, according to the Ministry of Industry and Trade (MoIT).


High-quality human resources key to sustainable tourism industry

Five most beautiful villages nationwide

Leaving the busy streets of cities to go to towns with pristine beauty allows travelers the chance to experience peaceful moments once they visit the five following beautiful villages.

HCM City, Hanoi earn highest revenue from tourism

In the first seven months of 2022, localities across the country recorded a high increase in tourism revenue led by HCM City, Hanoi, Thanh Hoa, and Quang Ninh.

Message about peace from the war remembrance garden of former naval soldier

Veteran Tran Van Quan has spent a lot of effort and time collecting leftover bomb and ammo shells to create a garden of war objects offering meaningful messages.

Storm Mulan causes flight disruption in Vietnam

Several airlines were forced to either readjust or cancel their flight schedules on domestic routes on August 11 due to the impact caused by Storm Mulan which weakened into a tropical depression.

Korean singer shows love for Vietnamese destinations in new MV

Vietnam looks stunning in a music video “Waiting for You – 5,000 Years” newly released by Republic of Korean singer and composer Joseph Kwon to mark the 30th anniversary of the diplomatic relations between the two countries.