Vietnam's steel industry is grappling with intensifying competition from foreign producers, as a surge of imported products—particularly from China—floods the domestic market, sparking concerns about market saturation. Industry experts warn that without swift intervention, domestic steel producers could face severe challenges.
The Vietnam Steel Association (VSA) reports that the country's steel production capacity currently stands at 23 million tons of crude steel and 38.6 million tons of finished steel annually. Despite an anticipated 7% increase in finished steel production to 30 million tons this year, domestic producers are struggling to maintain their market share.
Customs data highlights a significant rise in hot-rolled coil (HRC) imports, with China supplying 73% of Vietnam's HRC imports during the first four months of this year. The total steel imports reached 2.9 million tons, more than double the volume imported during the same period in 2023. This influx has sharply eroded the market share of leading domestic producers such as Formosa and Hoa Phat, whose combined share plummeted from 45% in 2021 to just 30% in 2023. In April alone, Vietnam imported 890,000 tons of HRC, 1.5 times higher than domestic production, with 71% of these imports originating from China, according to VSA Chairman Nghiem Xuan Da. In response, the VSA has called on authorities to enforce stricter technical standards and enhance quality control measures to prevent the influx of substandard steel products in the market.
The Ministry of Industry and Trade has initiated investigations into anti-dumping measures targeting galvanized steel and HRC imports from China, India, and South Korea. Additionally, the ministry is developing a comprehensive steel industry development strategy through 2030, with a vision extending to 2050. This strategy aims to safeguard the industry's future by promoting green and sustainable growth within the sector.
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