In 2024, finished steel production is expected to increase by 7% compared to the previous year and reach 30 million tons. However, the industry still faces various challenges. VSA President Nghiem Xuan Da emphasized that increasing imports have created excess supply in steel production in Vietnam and increased price competition for local steel products.
As of April 2024, hot rolled steel (HRC) imports to Vietnam have increased significantly, exceeding 890,000 tons, which is 1.5 times the domestic production. 71% of this import was from China. The amount of imported hot rolled steel amounted to 3.93 million tons, an increase of 32% compared to the same period in 2023, exceeding Vietnam's own hot rolled coil production by 159%.
Vietnam Steel Association stated that local producers such as Formosa and Hoa Phat experienced decreases in production and only 73% of their design capacity was reached due to unfair competition. Selling imported goods at low cost caused sharp declines in domestic production and market share. This led to the market share of domestic hot rolled coil producers decreasing from 45% recorded in 2021 to 30% in 2023.
The Vietnam Steel Association proposed to strengthen the regulation system, technical standards and quality management of the steel industry and prevent steel products from entering the Vietnamese market. The Ministry of Industry and Trade, on the other hand, tries to prevent unfair competition by implementing trade measures and focuses on developing the 2050 vision with the 2030 Vietnam Steel Industry Development Strategy.
In this context, Vietnam's long-term goals in the steel industry include becoming a national basic industry, meeting domestic demand and increasing exports. However, the sector continues to struggle with challenges such as heavy imports and low prices.
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