Domestic steel producers face fierce competition from foreign rivals

Vietnam's steel industry is facing fiercer competition from foreign rivals as imported products, particularly those from China, have flooded the domestic market, raising fears of market saturation. Industry experts have warned that without prompt action, domestic producers could be pushed to the brink.
Illustrative image (Photo: VNA)

Illustrative image (Photo: VNA)

According to the Vietnam Steel Association (VSA), domestic steel production capacity is 23 million tonnes of crude steel and 38.6 million tonnes of finished steel products annually. Despite a projected 7% increase in finished steel production to 30 million tonnes this year, challenges remain for domestic producers.

Recent customs data revealed a surge in hot-rolled coil (HRC) imports, with China accounting for a 73% of Vietnam's HRC imports in the first four months of this year. Some 2.9 million tonnes of steel were brought into the market, more than double the volume from the same period in 2023. This imported volume has led to a significant decline in market share for domestic giants like Formosa and Hoa Phat, plummeting from 45% in 2021 to just 30% in 2023.

steel_1.jpg

Illustrative image (Photo: VNA)

In April alone, the import volume of HRC into Vietnam reached 890,000 tonnes, 1.5 times higher than the domestic production volume. Of this, 71% was imported from China, according to VSA Chairman Nghiem Xuan Da.

The VSA has issued an urgent call to authorities, advocating for stricter technical standards and quality management measures to stem the tide of sub-standard steel products being sold into the market.

The Ministry of Industry and Trade has responded by launching investigations into anti-dumping measures for galvanised steel and HRC from China, India, and the Republic of Korea.

To safeguard the industry's future, the ministry is building a comprehensive steel industry development strategy until 2030, with a vision to 2050, which will be linked with specific policies aimed at promoting green and sustainable growth of the steel sector./.

Source: VNS
en.vietnamplus.vn

Related News

Latest News

Challenges in reviving stalled projects

Challenges in reviving stalled projects

VCN - Recently, some "frozen" real estate projects have shown signs of restarting. However, successfully reviving these projects is no simple task for businesses (DN) due to the numerous difficulties and challenges they face.
Ensuring fairness between domestically produced goods and imported goods

Ensuring fairness between domestically produced goods and imported goods

VCN - Mr. Chu Thang Trung, Deputy Director of the Trade Remedies Authority, Ministry of Industry and Trade, shared about the application of trade remedies measures to protect domestic production and some solutions in the coming time.
Domestic exporters urged to shield against trade remedy threats

Domestic exporters urged to shield against trade remedy threats

Vietnamese exporters are navigating a landscape filled with both promise and peril, and experts urge them to bolster their defence against trade remedy investigations while capitalising on surging global demand.
Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Vietnamese enterprises need to make efforts to innovate, proactively improve competitiveness, and participate in new supply chains to boost exports to Asia, said trade official.

More News

Increasing opportunities for exporting agricultural products to China by rail

Increasing opportunities for exporting agricultural products to China by rail

VCN - China is the largest export market for Vietnamese agricultural products and fruits. With increasing demand, exporting agricultural products by rail to this billion-people market is a potential and promising direction.
Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports have exceeded 1 billion USD again in October after more than two years, signaling a rosy future for the industry, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Read More

Your care

Latest Most read
Challenges in reviving stalled projects

Challenges in reviving stalled projects

VCN - Recently, some "frozen" real estate projects have shown signs of restarting. However, successfully reviving these projects is no simple task for businesses (DN) due to the numerous difficulties and challenges they face.
Ensuring fairness between domestically produced goods and imported goods

Ensuring fairness between domestically produced goods and imported goods

VCN - Mr. Chu Thang Trung, Deputy Director of the Trade Remedies Authority, Ministry of Industry and Trade, shared about the application of trade remedies measures to protect domestic production and some solutions in the coming time.
Domestic exporters urged to shield against trade remedy threats

Domestic exporters urged to shield against trade remedy threats

Vietnamese exporters are navigating a landscape filled with both promise and peril, and experts urge them to bolster their defence against trade remedy investigations while capitalising on surging global demand.
Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Vietnamese enterprises need to make efforts to innovate, proactively improve competitiveness, and participate in new supply chains to boost exports to Asia, said trade official.
Increasing opportunities for exporting agricultural products to China by rail

Increasing opportunities for exporting agricultural products to China by rail

VCN - Implementing the Regional Comprehensive Economic Partnership (RCEP) Agreement, Vietnam has now officially exported 14 agricultural products to the Chinese market, including fresh coconuts that have just been approved by China for official import fro
Mobile Version