Ministry seeks 'peculiar' policy to boost steel sector

By Anh Minh   May 11, 2022 | 04:57 pm PT
Ministry seeks 'peculiar' policy to boost steel sector
Steel rolls are seen at a factory of Hoa Phat Group. Photo courtesy of Hoa Phat Group
Vietnam’s steel industry needs a peculiar policy to boost development as it struggles to compete with global producers, according to the Ministry of Industry and Trade.

Although Vietnamese steel manufacturers have been able to increase the exports of galvanized aluminum and steel pipes, they still have to import a large amount other types of steel like alloy steel and hot-rolled coil steel, it said in a report.

The country produces 27 million ton of steel annually, but it is set to import over 18 million ton of materials this year, which means the sector has low competition and has yet to produce special alloy steel.

There are still factories with low capacity, high energy consumption and outdated equipment, and they carry high environmental risks, the ministry said.

Although steel plays a major role in supplying materials for other industries like mechanics, ship building, vehicle manufacturing, mining, electricity and national defense, there is no peculiar nor clear policy to develop the sector. Such a policy is needed to boost the development of the sector, it added.

Vietnamese manufacturing sectors could need up to $310 billion worth of steel by 2030, which will be a large market for steel producers.

This means the country needs large furnaces and to focus on steel products with high demand first, then later move on to master the technology to produce special and higher quality products, the ministry said.

Besides, the sector should only import steel that local manufacturers are yet able to produce.

The best areas to develop steel factories are the central region, where large land lots are still available and renewable energy resources abundant.

The Red River region in the north also has potentials thanks to large demand even though land funds are limited.

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