Steel Industry growth in Vietnam 2023: Challenges and Opportunities

Steel Industry growth in Vietnam 2023: Challenges and Opportunities

Steel NewsDate: 24-03-2023 by: Ngoc Cam

The uncertain impact of the 2023 global economy on commodity prices, including iron and steel, has implications for the Steel Industry growth in Vietnam. Nevertheless, the industry's "big guys" still attract investors and exporters with unique stories.

1. Situation of the global and ASEAN steel industry

According to estimates by the World Steel Association (Worldsteel), steel demand in 2023 is forecast to reach 1814.7 million tons, up 1% compared to 2022. Other forecasts also reflect the impact of inflation and high-interest rates will affect the global steel industry. 

Currently, upstream factories are under tremendous pressure from the increase in input material prices, such as ore prices, and the shortage of coking coal with a price twice as much as in 2021. The reason is due to fluctuations in the local supply and demand situation from China, Australia, and Brazil. However, infrastructure demand is expected to increase slightly, contributing to a more positive improvement in steel demand in 2023.

In ASEAN countries, although the Covid-19 pandemic has passed for a while, the effects and consequences of the disease still have not fully recovered. However, the good news is that countries such as Malaysia, the Philippines,... have issued policies to promote public investment projects to help the steel industry prosper. Not standing out of the race, Vietnam also focuses on recovering and developing a more stable steel industry.


2. Steel industry growth in Vietnam 2023

According to the Vietnam Steel Association (VSA), crude steel production nationwide will reach 23 million tons equivalent by 2022. Production of finished steel products will be at 31 million tons, and sales of finished steel products we teach about 27.5 million tons, all down 5% over the same period last year. Vietnam's iron and steel export market still mainly comes from Southeast Asia, accounting for more than 42%.

Vietnam's steel market in 2022 experienced more difficulties and fluctuations than in 2021. Many large enterprises, such as Hoa Phat, are forced to pause some production plants to overcome the situation of high-priced inventories. It is expected that 2023 will continue to be a difficult year for the steel industry due to the stagnation and freezing of many projects. The industry's prospects will depend significantly on the policies to promote public investment in projects and the disbursement progress of the state.


3. What opportunities for Vietnam's steel industry in 2023?

Downstream factories using input materials such as billet, hot-rolled steel, and cold-rolled steel are all under pressure from fluctuations in semi-finished product prices and are at risk of losses. Hot-rolled steel prices have increased sharply in the last two years compared to 2018-2020. This makes it difficult for manufacturing enterprises to purchase and store raw materials proactively.

In Vietnam, downstream factories can take advantage of domestically produced materials to alleviate some of the pressure due to latency. This is a preeminent competitive advantage only the domestic steel industry can do, thanks to its autonomy in raw steel supply and main types of semi-finished products.

Besides, the International Monetary Fund (IMF) recently predicted that Vietnam's economic growth, although at 6.2%, is still impressive in the context of the global recession and price pressures from the markWorldorld school. Vietnam is a developing country with a strong position in exporting construction steel, mainly markets in ASEAN, the EU (16%), and the US (8%).


4. MRS Steel - sourcing and importing various steel products from Vietnam

According to a report by the Vietnam Steel Association (VSA), modern production line technologies from Hoa Phat and Formosa also help improve the autonomy of domestic HRC. This helps stabilize the domestic prices of galvanized steel and steel pipes, reduce dependence on world HRC prices, and increase the advantage of steel export prices. By taking advantage of domestic raw materials, Vietnamese steel factories help limit pressure due to latency. 

In addition, the recent advantages of the government's export duty policy also contribute to making Vietnam a potential supply for many foreign partners. However, under trade barriers and cultural, language, and geographical obstacles, importers still face difficulties finding reputable and quality suppliers.

Currently, MRS Steel is one of the units specializing in providing solutions for sourcing and importing various steel products from Vietnam to help customers save time and effort in purchasing. Over 12 years of establishment and development, MRS Steel is proud to bring satisfied experiences to major importers from the EU, USA, Canada, Mexico, Australia, the Middle East, Southeast Asia, etc. MRS Steel connects with the largest steel factories in Vietnam, such as Hoa Phat, Ton Hoa Sen, POMINA, Ton Dong A, SENDO,... MRS Steel can meet all product requirements of customers with the best price.


Above is the latest information about the steel industry growth in Vietnam and globally in early 2023. Don't forget to follow and update many other impressive articles about Vietnam's iron and steel industry and the world exclusively at MRS Steel.

For more information and specific quotation, please contact MRS Steel via:

Address: No.41 Street 37, Van Phuc City, Hiep Binh Phuoc Ward, Thu Duc City, Ho Chi Minh City, Vietnam

Whatsapp: +84 76 911 2358

Hotline: +84 28 36 22 33 58