WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Vietnam’s local steel makers regain market share from Chinese importers
Ngoc Thuy 10:29, 2019/03/23
Local steel makers are shifting their production towards the upstream to replace the demand for imported semi-finished products.
Trade defense measures and strong growth of local steel producers are considered main factors helping local products increase sales and regain market shares from importers, mainly Chinese, according to Viet Dragon Securities Company (VDSC)’s latest report. 

According to a report by the General Department of Vietnam Customs, the import of iron and steel into Vietnam has been decreasing. Vietnam imported 1.1 million tons of iron and steel every month in 2018, 12% lower than in 2017 and 27% lower than in 2016. 

“This is considered a remarkable achievement for a period as the domestic steel industry has made progress regarding both scale and value chain,” stated the report. 

This was due to the fact that trade defense measures were implemented to protect local suppliers. 

As of end-2018, Vietnam had initiated seven investigations on imported steel including billet, long steel and galvanized sheet. In particular, the anti-dumping duties imposed on billets, long steel in 2016 and galvanized steel sheets in 2016 and 2017 supported domestic prices.

Moreover, local steel producers have grown rapidly in the last few years to meet domestic demand and to replace imported goods. During 2015-2018, construction steel, steel pipe and galvanized steel industry increased by respective 51%, 69% and 40% in output. It implied that the declining import has in fact resulted from the local supply side’s development. In addition, reducing dependence on imports brings macroeconomic benefits related to employment and trade balance.

Hot rolled steel production jumped 29 times in the period of 2015-2018, which is considered the most solid evidence of the value chain development of the local steel industry. 

In particular, Vietnam's first production of hot rolled steel, the main input in steel pipe production and galvanized steel sheet is one of the reasons for the decline in steel import demand. VDSC considered this an outstanding achievement of the domestic steel industry when all hot rolled coil had previously been imported. 

Hot rolled coil imports were up to six million tons per year, more than US$3 billion in value, mostly to produce galvanized sheets and steel pipes. In the future, it is expected that steel imports will continue to decline as Vietnam moves towards full autonomy of hot rolled steel supply owing to major producers such as Formosa and Hoa Phat Group.

In the time ahead, although there is unlikely a large increase in supply, the steel industry can find growth drivers. Local steel makers are shifting their production towards the upstream to replace the demand for imported semi-finished products. VDSC expected when Formosa and Hoa Phat operate new blast furnaces at full capacity, steel imports will decline even further.
Other news
22:59, 2024/12/24
Hanoi to attract US$768 million in industrial parks in 2024
Companies in Hanoi highlighted the significant improvements in the business environment in Vietnam, particularly in the capital, where it has become easier to operate in the industrial zones.
21:35, 2024/12/21
Regulatory efforts underway to strengthen e-commerce in Vietnam
By 2025, Vietnam's e-commerce is expected to reach 10% of retail sales and contribute to the digital economy which is estimated to account for 20% of GDP.
16:51, 2024/12/14
Hanoi honors key industrial products in 2024
This recognition is a testament to the city government's ongoing support of local businesses.
18:09, 2024/12/12
EVs take the spotlight on Vietnam's urban streets
On the streets of Hanoi, a quiet but powerful shift in transportation is underway.
13:43, 2024/12/12
Hanoi names 83 institutions Green Energy User 2024
More than 80 facilities and projects have been recognized for their innovative use of green energy in manufacturing.
12:07, 2024/12/09
Bat Trang artisans innovate to meet global market demands
To boost competitiveness, Bat Trang pottery businesses leverage information technology for product promotion.