The domestic steel price hike has been attributed to a global price increase. To reduce steel prices, production costs need to be cut.

The steel industry experienced many difficulties in 2019 due to stronger steel imports and reduced sales of locally made products at home and abroad.

According to the Vietnam Steel Association (VSA), in the first nine months of 2019, domestic steel output reached 18.83 million tons, an increase of 6.7 percent compared with the same period last year.

The biggest difficulties facing Vietnam’s steel industry are trade remedies applied by importing countries and supply of materials.

Global steel capacity is forecast to be excessive so steel has been pouring into the Southeast Asia region. 

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

The retail electricity price increase has dealt a strong blow to the steel manufacturing industry, which is facing difficulties.