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On September 04th, 2007, the Prime Minister issued decision No. 145/2007/QD-TTg for the Development Plan of Vietnam Steel Industry in the period 2007-2015, considering 2025. According to the plan, the demand for steel products in Vietnam by 2025 will be about 24-25 million tons.
* Construction steel
Most of the steel requirement in Vietnam comes from the construction sector (accounting for over 90% of total steel consumption in the country). In 2019, the growth rate of the industry decreased gradually compared to previous years, mainly due to the weakening of the real estate market and public investment projects are decelerating. Hoa Phat Group is currently the leading company in the market, accounting for 26% of the market share of construction steel supply, possess significant advantages and domestic iron ore materials source as well as a large scale of modern basic oxygen furnace (BOF) production line.
* Steel pipes
Production and consumption of steel pipes increased rapidly from 2015 to 2019. Specifically, the compound annual growth rate (CAGR) of production is 17% while the CAGR of consumption is 18.9%. It is estimated that in 2019, the output of steel pipes produced reached 2,526 thousand tons, consumption reached 2,313 thousand tons. However, in 2019, steel pipe consumption decreased slightly. This is mainly due to the negative impact of the export market, namely the protection policies of U.S for domestic goods.
* Galvanized
Vietnam's galvanized / galvalume and color coated steel market have annual consumption of about 3~3.5 million tons. In 2019, the consumption of galvanized steel reached 3,469 thousand tons, down 22% over the same period. Causes:
• As well as steel pipes, galvanized steel pipes are negatively affected by the trade protection policies of importing countries;
• Domestic demand does not offset the planned shortage of exports;
• Galvanized production capacity is quite redundant, competitive pressure will continue to increase soon.
* Import and export
Steel imports from 2016 to 2019 decreased, down to 14.55 million tons in 2019 due to enterprises actively expanding production, boosting output. Formosa Ha Tinh produced hot rolled coil (HRC) - the product Vietnam almost could not manufacture previously, partially offset the domestic shortage and reducing import pressure.
China is still the largest steel supply market for Vietnam. Total steel imported from China in 2019 reached 5.143 million tons, accounting for 35% of the total steel imports in the country. In the period 2015 - 2019, iron and steel exports at the end of the period increased by more than double compared to the beginning of 2015. However, in 2019, they decreased by 7.4% in turnover and 13.2% in price compared to 2018 due to the influence of protection policies in some markets including the US.
* Steel projects
On May 29, 2015, the Ministry of Industry and Trade of Vietnam issued Decision No. 5295/QD-BCT on the addition of the steel production system and distribution system development plan for the period up to 2020, taking into account 2025, accordingly, added "Expanding the capacity of high-quality construction steel production capacity of 600,000 tons/year under the investment project of Hoa Phat Iron and Steel Production Complex phase 1" of Hoa Phat Steel Joint Stock Company in Hiep Son commune, Kinh Mon district, Hai Duong province.
[1] Vietnam Investment Promotion Guidebook
INVESTMENT OPPORTUNITIES IN VIETNAM - PART I. Mechanics and metallurgy
INVESTMENT OPPORTUNITIES IN VIETNAM [1]
PART I. Mechanics and metallurgy
On September 04th, 2007, the Prime Minister issued decision No. 145/2007/QD-TTg for the Development Plan of Vietnam Steel Industry in the period 2007-2015, considering 2025. According to the plan, the demand for steel products in Vietnam by 2025 will be about 24-25 million tons.
* Construction steel
Most of the steel requirement in Vietnam comes from the construction sector (accounting for over 90% of total steel consumption in the country). In 2019, the growth rate of the industry decreased gradually compared to previous years, mainly due to the weakening of the real estate market and public investment projects are decelerating. Hoa Phat Group is currently the leading company in the market, accounting for 26% of the market share of construction steel supply, possess significant advantages and domestic iron ore materials source as well as a large scale of modern basic oxygen furnace (BOF) production line.
* Steel pipes
Production and consumption of steel pipes increased rapidly from 2015 to 2019. Specifically, the compound annual growth rate (CAGR) of production is 17% while the CAGR of consumption is 18.9%. It is estimated that in 2019, the output of steel pipes produced reached 2,526 thousand tons, consumption reached 2,313 thousand tons. However, in 2019, steel pipe consumption decreased slightly. This is mainly due to the negative impact of the export market, namely the protection policies of U.S for domestic goods.
* Galvanized
Vietnam's galvanized / galvalume and color coated steel market have annual consumption of about 3~3.5 million tons. In 2019, the consumption of galvanized steel reached 3,469 thousand tons, down 22% over the same period. Causes:
• As well as steel pipes, galvanized steel pipes are negatively affected by the trade protection policies of importing countries;
• Domestic demand does not offset the planned shortage of exports;
• Galvanized production capacity is quite redundant, competitive pressure will continue to increase soon.
* Import and export
Steel imports from 2016 to 2019 decreased, down to 14.55 million tons in 2019 due to enterprises actively expanding production, boosting output. Formosa Ha Tinh produced hot rolled coil (HRC) - the product Vietnam almost could not manufacture previously, partially offset the domestic shortage and reducing import pressure.
China is still the largest steel supply market for Vietnam. Total steel imported from China in 2019 reached 5.143 million tons, accounting for 35% of the total steel imports in the country. In the period 2015 - 2019, iron and steel exports at the end of the period increased by more than double compared to the beginning of 2015. However, in 2019, they decreased by 7.4% in turnover and 13.2% in price compared to 2018 due to the influence of protection policies in some markets including the US.
* Steel projects
On May 29, 2015, the Ministry of Industry and Trade of Vietnam issued Decision No. 5295/QD-BCT on the addition of the steel production system and distribution system development plan for the period up to 2020, taking into account 2025, accordingly, added "Expanding the capacity of high-quality construction steel production capacity of 600,000 tons/year under the investment project of Hoa Phat Iron and Steel Production Complex phase 1" of Hoa Phat Steel Joint Stock Company in Hiep Son commune, Kinh Mon district, Hai Duong province.
[1] Vietnam Investment Promotion Guidebook
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