return icon

VN steel manufacturers struggle for shelter during tough period

A high number of steel manufacturers have reported loss as export markets have shrunk, while the domestic battle is fierce because of competition.

An analyst said steel manufacturers are experiencing the toughest period in their history: in the domestic market, supply exceeds demand, while in the world market, they face international lawsuits.




Steel is a key product of many countries and an oversupply is seen all over the world. Countries are setting technical barriers to protect local industry.

The Malaysian Ministry of International Trade and Industry (MITI) on May 8 announced anti-dumping duties on some hot rolled coil steel imports from Vietnam, ranging between 2 and 13.68 percent.

The duties will be applied for two years, which means that Vietnam’s steel products will find it difficult to enter the market in the coming two years.

Steel manufacturers are experiencing the toughest period in their history: in the domestic market, supply exceeds demand, while in the world market, they face international lawsuits.

Vietnam’s steel products have to bear anti-dumping duties imposed by regional countries, Europe and the US for the last few years, which has pushed many steel manufacturers against the wall.

This, plus the prolonged trade war which prompted Chinese enterprises to boost exports to Vietnam, has made the situation more serious for Vietnam. Many steel manufacturers have reported low growth rates and profit reduction in Q1 in comparison with the same period last year.

Nam Kim Steel JSC (NKG), for instance, has reported a loss of VND102 billion in Q1, attributing this to the input material price fluctuations. Prior to that, the company unexpectedly reported a loss of VND173 billion for Q4 2018.

Pomina (POM) reported a slight increase in revenue in Q1 (VND3.124 trillion, 2.7 percent). Of this, domestic sales made up 72 percent, while exports brought 28.25 percent. However, the post-tax profit of the holding company was minus VND83.66 billion because of the high cost price, 9.3 percent higher than the same period last year.

As for SMC Investment & Trade, though its Q1 revenue increased by 27 percent, the profit decreased by 50 percent.

Even Hoa Sen, a big sheet metal manufacturer, is also meeting big difficulties, witnessing revenue decreasing since Q3 2018, from VND10.35 trillion in Q3 2018 to VND8.561 trillion in Q4 2018 and VND7.557 trillion in Q1 2019. The profits were unsatisfactory, dropping from VND82 billion in Q3 2018 to minus VND101.8 billion the next quarter and then increasing to VND60.6 billion in Q1 2019.

Deputy Minister of Industry and Trade Tran Quoc Khanh, at a conference on May 2 discussing how to exploit the CPTPP trade agreement to boost exports, commented that Vietnam needs to develop hot rolled coil (HRC). If not, Vietnam’s steel manufacturing industry will not be able to export and can only exploit the domestic 100 million-consumer market.



Vietnam’s steel manufacturing in a whirlwind of lawsuits

Chinese steel manufacturers flock to Vietnam to avoid US trade war


Mai Lan


The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.

Woodwork exports to EU, US drop as consumers cut spending

Many woodwork manufacturers complain that exports have been sliding as people in target markets have been tightening their purse strings.

Vietnam: new destination for multinationals to set up R&D centers

Vietnam wants to upgrade foreign direct investment (FDI) quality by manufacturing products with higher hi-tech and added value, and multinationals are also striving to do this after many years in Vietnam.

Huge real estate projects seek new investors

Many investors have quit large-scale investment projects capitalized at trillions of dong.


Work starts on Tan Van-Nhon Trach section of HCM City’s Ring Road No.3

Three Vietnamese airlines named among world’s best air services

Vietnam Airlines, Vietjet Air, and Bamboo Airways have been honoured in different categories by Skytrax, a UK-based site which ranks airlines and airports.

Vietnam Days Abroad 2022 to take place in Austria, India, RoK

Vietnam Days Abroad 2022 will be held in Austria, India, and the Republic of Korea (RoK) on the occasion of the anniversaries of diplomatic relations between Vietnam and these countries.

UN backs Vietnam’s development priorities: Secretary-General

The United Nations (UN) will continue paying attention to and support Vietnam's development priorities towards green and sustainable orientations, and just transition, especially in terms of financial access.

Vietnam merits seat at UN Human Rights Council: Washington Times

The Washington Times has published an article in which it supports Vietnam's candidacy for the United Nations Human Rights Council (UNHRC) for the 2023-2025 term.

Storm Noru to enter East Sea, localities warned to stay alert

The National Centre for Hydro-Meteorological Forecasting has predicted that storm Noru will enter the East Sea on September 25 evening, and recommended coastal localities to brace themselves for the storm.

Vietnam plans to vaccinate under-5 children against COVID-19 if there’s scientific basis

The Ministry of Health has asked provinces to calculate the number of children from 6 months old to under 5 years old to prepare a plan on COVID-19 vaccination for them when there are enough conditions and scientific basis.


Untapped opportunities for Vietnamese pepper exports to UK

Startup ecosystem requires helping hand

Big passion for establishing businesses with novel ideas from many Vietnamese people is creating a vivid startup ecosystem for the country. However, the community is longing for more favourable conditions for it to grow further.