Why Vietnam is a good place in producing steel for US importers
BlogDate: 19-10-2023 by: Ngan Le
Thanks to its favorable geographical location, extensive trade cooperation, and diverse steel supply capabilities, Vietnam is gradually being recognized as a highly promising destination in producing steel for US importers. Taking advantage of its existing strengths and continuous production improvements, businesses can seize additional opportunities for upcoming projects.
The location and logistical advantages of Vietnam in producing steel for US importers
Vietnam possesses a geographical location situated in an important trade region in the South Sea and is considered the world's second-busiest maritime route. Steel is a major commodity transported via sea routes in international trade, and Vietnam's position along the maritime corridor connecting Southeast Asia with countries in Europe and the Americas has created favorable conditions for this country to produce steel for US importers as well as delivering to major global ports.
Furthermore, Vietnam continually invests in logistic activities, including making up and operating deep-water ports to facilitate import and export, especially in the steel industry. Steel export orders often involve large volumes with high values, so investing in deep-water ports improves vessel transportation efficiency and enhances port capacity while reducing cargo waiting times. Some remarkable deep-water ports in Vietnam, such as Cai Lan, Nghi Son, Vung Ang, Dung Quat, Cam Ranh, Vung Tau, among others, have contributed to Vietnam's role in the global steel supply chain and boosted steel export growth.
Benefits’s US steel importers through trade agreements between the two countries
The trade cooperation relationship between Vietnam and the United States has been established for over 10 years, notably marked by the Bilateral Trade Agreement (BTA) signed in 2000. According to the terms of the BTA, import tariffs on various goods, including steel will be significantly reduced, providing favorable conditions for Vietnam's steel industry to increase its exports to the U.S. market. Additionally, Vietnam enjoys privileges when its steel imports into the United States are not subject to quotas.
In recent years, the United States has ranked fourth among the top 10 largest steel import markets in Vietnam, accounting for 7% in 2021. Despite challenges arising from recent trade remedies investigations, the trade cooperation in the steel import and export sector between the two countries is still considered to have potential toward Vietnam's strong steel products like hot-rolled steel, galvanized steel, ppgi/ppgl and construction steel.
Improving technology processes and moving towards green production trends
According to data from Word Steel, in the consecutive years of 2022 and 2023, Vietnam has ranked 13th in the world in terms of crude steel production. This data demonstrates the country's self-sufficiency in steel production to satisfy not only domestic consumption but also global demand. Additionally, Vietnam's steel industry ranked 14th and 13th in the world for exports (11.2 million tons) and imports (13 million tons) in 2021.
Furthermore, domestic steel producers continually upgrade their production lines to provide steel grades that meet international standards. Most large-scale steel manufacturers in Vietnam, including Hoa Phat Group, Hoa Sen, Nam Kim, and Ton Dong A, have long been utilizing advanced technology from Danieli & Tenova (Italy) and SMS Group (Germany), thanks to these advancements, Vietnamese steel products conform to strict international standards such as JIS (Japan), ASTM (USA), and BS (UK),...
The trend towards sustainable steel production is being embraced by many domestic steel enterprises, viewing it as an essential direction for adapting their development strategies. A prime example is the Hoa Phat Group, which employs waste recycling in its production process to minimize emissions into the environment. The VAS Steel Group is also a standout player in pioneering green and clean steel production. Their plant uses recycled steel as raw material and has a waste control and processing system, providing high-quality steel products without impurities. The awareness and proactive adoption of production changes have enabled the Vietnamese steel industry to penetrate large markets, particularly providing numerous opportunities in producing steel for US importers.
Choosing quality suppliers from Vietnam in producing steel for US importers
The Vietnamese steel market in recent years has been seen as a potential destination for international importers due to its ability to supply diverse and high-quality steel grades that meet project requirements. Therefore, seeking and selecting an experienced long-term supplier of steel solutions can help importers save time and effort in market research.
With over 12 years of experience in the steel industry, partnering with MRS Steel will provide US steel importers access to a wide range of quality and diverse steel sources directly from large factories. Additionally, our team of knowledgeable consultants is ready to assist you in selecting the right steel for your project and provide the latest price lists in the market. For more specific information on the benefits of collaborating with us on your import project, please contact us via email at vanloc@mrssteel.com.vn or WhatsApp at +84 76 911 2358.
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