Vietnam’s steel industry is set for strong growth in 2022 thanks to growing domestic demand amid the Government’s push for public investment and a subdued pandemic situation.

Vietnam's steel industry is set for a promising outlook in 2022. Photo: The Hanoi Times

In early 2022, the National Assembly approved a socio-economic recovery package worth nearly VND350 trillion (US$15.2 billion). Of the total, VND113.8 trillion ($5 billion), or one-third of the stimulus package, would be allocated for infrastructure development, including major projects such as the Eastern North-South expressway, and Long Thanh International Airport, and large logistics hubs.

“Such a drive is leading to high demand for steel,” noted the Vietnam Steel Association (VSA) in a report.

In March, steel production reached 3.33 million tons, or an increase of 29.16% against the previous month and 6.8% year-on-year.

Steel consumption also rose by 21.3% month-on-month to 3.12 million tons during the month.

In the January-March period, the domestic steel industry churned out 8.45 million tons, up 3.2% year-on-year, with 8.13 million being consumed locally, up 11.9%.

Meanwhile, Vietnam exported 956,000 tons of steel in March for US$908.63 million, up 75.41% month-on-month in volume and 71.8% in value.

This put the total export volume in the first quarter to 2.27 million tons, earning $2.3 billion, down 22.15% year-on-year but up 12.53% in value.

The key export markets for Vietnam’s steel in the three months were ASEAN (40.5% of the total exports), EU (19.32%), the US (8.34%), and South Korea (6.97%), and Hong Kong (3.91%).

On the contrary, Vietnam imported 1.1 million tons of steel in March for $1.14 billion, up 23% in quantity and 23.3% in value year-on-year. In turn, a total of 3 million tons of steel were imported in the first quarter at $3.1 billion, down 18% in quantity but up 19% in value.