According to the Vietnam Steel Association (VSA), in recent years, the steel industry has faced many challenges due to excess capacity, increasingly fierce competition pressure from domestic manufacturers and the direct influence of Steel imported from China. At the same time, erratic input and output raw materials have a direct impact on the production and business efficiency of steel enterprises. Especially, Vietnam’s steel industry is heavily dependent on the international raw material market, most of the input materials for the production of steel products must be imported in very large quantities (about 90% of iron ore. , 100% fat coal, 70% scrap steel, 100% graphite electrode).
It is expected that in the period of 2019 – 2023, with the overall economic growth rate of the whole country is forecasted to be quite high (6.7 -7.0% / year), steel demand is also high.
At the same time, this is also a period of extensive economic integration, especially the implementation of new world free trade agreements such as CPTPP, EVAFTA, RCEP … will create good conditions for Vietnam’s steel industry to expand the market. export, as well as import materials, equipment and good technology for steel production.
However, the implementation of trade liberalization agreements will create more fierce competition, especially with steel products from China. However, VSA still makes an optimistic forecast, with the industry’s average growth rate of about 8-10% / year in the future.