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Vietnam Steel Standard Report Q3/2016

Vietnam Steel Standard Report Q3/2016

  • January 2017
  • 75 pages
  • ID: 4945037
  • Format: PDF
  • Vietnam Industry Research and Consultant


Table of Contents

The steel industry is a heavy important industry in industry area in the world and creates the essential products in daily life. Therefore, the changes in the industry will directly impact to the field of industrial production and affect on economic growth.

In 5 years, the production and consumption of steel in the world has tended to increase with the highest level in 2014. However, in 2015, it went down. The reason was that the world’s no.1 steel market was China declined, supply exceeded demand so this country aimed to massively export to foreign markets with cheap price. This caused global market manipulation. The demand reduced and the supply was surplus, steel trade surplus of China is becoming a threat to the countries producing steel in the world.

While the global steel market was slowdown, the Indian steel industry had an annual steady growth, became the No. 3 in the largest steel producers in the world, after China and Japan.

In Vietnam, the domestic steel production volume grew continuously in 2011 – 2015, especially soared in 2015. Meanwhile, the domestic consumption volume grew unevenly in recent years. Besides, the number of enterprises steel production rose sharply in 2011, but reduced in 2012 and continued to increase in 2014.

The Vietnam steel industry is always in the imbalance situation with the excess of crude steel but the lack of other finished products. The machine and technology of domestic steel production was only on average compared to the world. It largely used the machines and technology from Chinese emissions leading to big energy consumption. The efficiency in economy – technology was low and the production cost was high. All of these make difficulty in competing with cheap imported steel from China.

Many trade agreements (TPP, AEC, …)will bring great opportunities for Vietnamese enterprises such as powerfully attract of foreign investment, promote technology transfer, improve corporate governance, increase business efficiency while expanding markets for export industries, including the steel industry. However, the Vietnamese steel companies also face challenges and difficulties in foreign markets while continuously facing commercial lawsuits and being levied the high Anti-Dumping and Anti-Subsidy from Canada, United States, … and fiercely competing on the “home” due to massive importing of steel products from abroad with the lower price than in domestic. Vietnam is in danger of becoming the consumption market of imported steel of giants in the global steel industry, especially China. Although the government has supported several measures such as tax increase for safeguard on steel products from abroad, but if the local firms are not actively investing in technology and innovating in the production, Vietnam’s steel market will soon belong to foreign firms.

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