Steel News

The steel industry in Vietnam, along with the global steel industry, is aiming to achieve carbon neutrality by 2050. Consequently, in recent times, the Vietnamese steel industry has undergone significant innovations and remarkable developments, contributing to the country's modernization and industrialization process.From 2015 until now, the steel industry in Vietnam has made significant strides and grown substantially, positioning itself as the 13th largest producer of crude steel in the world and leading ASEAN in both steel production and consumption of finished steel products. Presently, there are over 300 enterprises across the country engaged in the production and trade of iron and steel, contributing significantly to the growth and development of the steel industry.The Deputy Chairman and Secretary-General of the Vietnam Steel Association, Mr. Dinh Quoc Thai, highlighted that the Vietnamese steel industry has been making efforts to digitize, optimize technology and efficiently utilize energy resources. Some steel enterprises have leveraged surplus heat to generate electricity, meeting most of the plant's power needs, thereby reducing adverse environmental impacts and showing promising initial results. However, the steel industry still bears responsibility for 7-9% of the total national emissions and 45% of the industrial processes identified in the national strategy on climate change. Hence, the Vietnamese steel industry needs to move towards a green growth strategy to achieve the goal of achieving carbon emissions of "0" by 2050.Currently, green development has become a global imperative to limit and eliminate the adverse impacts of climate change on socio-economic growth. The steel industry in Vietnam possesses a full range of existing technologies available worldwide, including blast furnace technology, oxygen furnace technology and electric furnace technology. Additionally, there are some other technologies like direct reduction technology; however, the adoption of this technology is currently at a modest level.Additionally, Vietnam's steel industry is actively implementing more advanced technologies and production processes to aim for greener production. This encompasses utilizing more advanced technologies to reduce emissions, recycling raw materials and optimizing production processes to minimize environmental impact. Steel manufacturers can adopt recycling technologies to reuse materials like scrap steel, reducing waste output and applying environmental protection measures throughout the production process. This not only helps reduce negative environmental impacts but also promotes sustainability and efficiency in production. Furthermore, governmental support and investments in research and technology development play a pivotal role in driving the steel industry towards greener production.This is indeed the biggest challenge facing the Vietnamese steel industry in the upcoming period, but simultaneously, it represents a significant opportunity for the steel sector to innovate, modernize, and evolve into a technologically advanced and sustainable industry.

As one of the primary industries impacting the environment, the Vietnam Steel Association recently organized a workshop on the steel sector with the objective of achieving carbon neutrality by 2050. This also signifies Vietnam's technological transition direction towards a green steel industry.During the four discussion sessions at the workshop, participants focused on the following topics: The Vietnam steel industry aiming for the carbon neutrality goal by 2050; experiences and carbon neutrality roadmaps of other countries and recommendations for Vietnam; technological transition directions towards carbon neutrality in steel production and collaboration mechanisms; and the green transition roadmap of the business community.In recent times, the steel industry has progressively developed and made significant contributions to the industrialization and modernization of the country. Today, Vietnam has become the 13th largest raw steel producer in the world and leads the ASEAN in production and consumption of finished steel products. With the rapid growth of the steel industry, Vietnam is proactively pioneering the execution of the goal for carbon neutrality by 2050.As one of the countries with a growing steel industry, it is also an industry that significantly impacts the environment, accounting for 7% - 9% of the country's total emissions and 45% of industrial processes (as identified in the national climate change strategy). For this reason, Vietnam's steel sector is making progressive efforts to transform and optimize technology to enhance overall industry efficiency. The transition from 'gray steel' to 'green steel' is an inevitable trend and is aligned with the development goals of Vietnam's steel industry. Addressing climate change, reducing greenhouse gas emissions, protecting the environment, and conserving nature and biodiversity are crucial issues humanity needs to tackle. With these factors in mind, the Vietnamese steel industry should aim for a green growth strategy to achieve a net-zero carbon emission goal by 2050.Businesses in Vietnam, led by Hoa Phat, have prioritized investing in the development of high-tech steels and special steels to serve the mechanical fabrication industry, automotive industry, shipbuilding, structural steel, and more. Simultaneously, Hoa Phat always focuses on optimizing all production stages towards a circular, closed-loop model, reducing energy consumption, and establishing a roadmap for green steel development. This includes reducing CO2 emissions in line with the government's general direction, aiming for carbon neutrality by 2050. However, a current issue is that implementing emission reductions will impact the production costs of businesses. All steel manufacturing enterprises bear these cost implications. This is a challenge, but it also serves as a motivation for the steel industry to aim for stronger exports to other markets.Above are the details regarding the direction of Vietnam's steel industry towards the goal of achieving carbon neutrality by 2050. This truly represents a significant challenge for the Vietnamese steel sector in the upcoming period. This objective is not only a responsibility towards the environment but also a mission for Vietnam to become a sustainable steel-producing nation, pioneering in the region and globally. With the commitment and effort of the entire industry, this goal is entirely feasible and will pave the way for a new future for the Vietnamese steel industry.