According to the World Steel Association (worldsteel), global crude steel production in 2023 was 1.8882 billion tons. Vietnam surpassed Taiwan with its production of 19 million tons and rose to 12th place. Vietnam, which ranked 18th in 2017, showed a great improvement by moving up to 11th place in 2024. In 2024, Vietnam's steel production increased by 14.9% to 22.1 million tons. Taiwan ranked 13th with 19.1 million tons, down slightly by 0.3%. Indonesia ranked 14th with production of 17 million tons, up 0.9%.
Vietnam has become one of the leading steel producers in ASEAN. In 2023, it produced 19.2 million tons of crude steel and 19 million tons of finished steel. Long product production was 12.5 million tons and HRC and strip steel production was 6 million tons. In the first half of 2024, finished steel sales reached 14.27 million tons.
Vietnam's Dependence on Imports Continues
Vietnam's steel imports are increasing rapidly. In 2023, the country imported 13.33 million tons of finished steel products. China supplied more than 62% of them, while Japan (14.3%) and South Korea (8.3%) were the other major suppliers. In the first half of 2024, total imports increased by 48% to 8.2 million tons. The amount of steel from China increased by 86% to 5.7 million tons.
Imports of hot-rolled steel increased by 19% to 9.64 million tons in 2023. In the first four months of 2024, 3.93 million tons of hot rolled steel was imported, 71% of which came from China. Imports from China doubled in a year, surpassing Vietnam's domestic production.
New Facilities and Production Capacity Increase
Vietnam's steel sector is rapidly expanding its capacity. At the end of 2024, SunPro Steel completed its 500,000 tons/year plant in Hau Giang, while Hoa Phat Group's 5.6 million tons/year blast furnace is expected to be operational in 2025. Kyoei Steel of Japan will commission its long product rolling line in April 2025.
According to Nghiêm Xuân Đa, President of the Vietnam Steel Association (VSA), imported hot-rolled steel in April 2024 reached 1.5 times the total local production. In the first four months of 2024, imports accounted for 159% of local production.
As the sixth largest economy in ASEAN, Vietnam continues to grow in the steel industry. With new plant investments and efforts to increase local production, it is on track to become a regional steel centre in the future.
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