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Vietnamese steel export report in 2023

Vietnamese steel export report in 2023

Steel NewsDate: 22-05-2024 by: Ngoc Cam

Under the impact of the slowdown and complicated inflation situation globally, Vietnamese steel exports still faced many difficulties. However, iron and steel remained among the top 10 key export products of Vietnam in 2023 and maintained a good growth rate with a value of 8.32 billion USD, an increase of 4.2%. 

The main export markets of Vietnamese iron and steel were still ASEAN, EU, United States, India,... In this article, MRS Steel will send readers with the most detailed and comprehensive report on Vietnam's steel exports in 2023.

Vietnamese steel exports thrive amid global challenges in 2023
Vietnamese steel exports thrive amid global challenges in 2023

Global and Vietnamese economic context in 2023

In 2023, the global economy recovered significantly but inflationary pressure remains high and is a concern for countries. Consumer demand and economic activities remained low. International trade and goods transportation activities faced risks from political conflicts such as Russia - Ukraine, Israel - Hamas, which were increasingly spreading in the region.

The Vietnamese economy also felt the impact of the global economic downturn, market fluctuations and interest rate and exchange rate policy adjustments of major economies. Steel export activities in particular and exports in general faced many challenges. However, the state also provided timely instructions and interventions to overcome difficulties. The Vietnamese government accelerated the progress of negotiations on free trade agreements such as the FTA between Vietnam and Israel, the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the UAE,...

Vietnam steel export situation in 2023

Steel export turnover in 2023 reached 11.1 million tons, with a value of 8.35 billion USD, + 32.6% in volume and +4.5% in value y/y. The export price of steel did not fluctuate much compared to 2022, with low volatility, averaging around 700 USD/ton.

Regarding export markets, ASEAN ranked first with 3.5 million tons, valued at 2.4 billion USD, -1.1% in volume and -17.1% in value y/y. Following ASEAN is the EU market with 2.55 million tons, valued at 1.89 billion USD, +86.2% in volume and +29% in value. The US market imported 1.08 million tons of iron and steel of all kinds, worth 851.9 million USD, +58.8% in volume and +1.2% in value y/y. In particular, steel exports to India and the UK grew impressively with 967.6 thousand tons and 212.6 thousand tons respectively. However, steel exports to China continued to decrease, reaching only 5.58 thousand tons, equivalent to 8.7 million USD, -94.4% in volume and -86.6% in turnover value.

In terms of export types, the main steel products were rolled steel, galvanized steel, steel bars, steel plate, galvalume steel and color-coated steel,... Of which, the export output of rolled steel was the largest with 4.2 million tons, valued at 2.6 billion USD, accounting for 37.9% of Vietnamese total steel exports

Top types of steel exported by Vietnam in 2023
Top types of steel exported by Vietnam in 2023

Steel export market situation in 2023

Asian market

In 2023, Vietnamese export turnover to Asia reached 173.2 billion USD, -0.5% y/y, accounting for 48.8% of Vietnamese total exports. Of which, iron and steel were the main export products with 4.1 billion USD, down 8% compared to 2022. Vietnamese steel exports to Southeast Asia reached 2.4 billion USD, down 17.1%. Below are the top countries and regions that import the most Vietnamese steel in Asia:

Top 7 Southeast Asian countries that import the largest Vietnamese steel in 2023
Top 7 Southeast Asian countries that import the largest Vietnamese steel in 2023

European market

In 2023, Vietnamese exports to Europe amounted to 53.2 billion USD, down 4.4% compared to 2022. According to statistics from the General Department of Customs, Vietnam exports iron and steel of all kinds to the EU region (27 countries) reached nearly 1.9 billion USD, + 29% y/y.

Top European countries that import the largest Vietnamese steel in 2023
Top European countries that import the largest Vietnamese steel in 2023

Americas market

Vietnamese export turnover of goods to the Americas in 2023 reached 114.1 billion USD, down 11% compared to the previous year. Vietnam was the 10th largest trading partner of the United States with export turnover reaching 104.8 billion USD (accounting for 3.7% of total US imports). In addition, Vietnamese total export turnover to CPTPP markets in the Americas in 2023 reached nearly 11.7 billion USD. In particular, Vietnam continues to be Canada's most important import partner, surpassing Italy to become Canada's 7th largest import partner.

Oceania market

In the Oceania region, Australia was Vietnam's largest trading partner, accounting for 88.9% of Vietnam's exports to Oceania. Iron and steel was still one of Vietnam's main export products to Australia reaching 146.5 million USD, down 29.6% compared to 2022.

Top Vietnamese steel import markets in 2023
Top Vietnamese steel import markets in 2023

Advantages of Vietnamese steel exports in 2023 and the future

Developing logistics capacity

According to the Agility 2023 rankings, Vietnam's logistics market is in the top 10 global emerging logistics marketsIn terms of international logistics opportunities, Vietnam currently ranks 4th in Southeast Asia and is forecast to have a compound annual growth rate (CAGR) for the period 2022-2027 reaching 5.5%.

According to the World Bank's assessment, the Vietnamese logistics performance index (LPI) in 2023 reached 3.3 points, 43rd out of 154 countries and territories and 5th among ASEAN countries. International cooperation in the field of logistics has also had many positive developments, contributing to promoting trade, distribution and export of goods.

Vietnam's Logistics Market Ranks Top 10 Globally in 2023
Vietnam's Logistics Market Ranks Top 10 Globally in 2023

Strengthening Origin of Goods Certification

To support businesses to take advantage of FTAs effectively, in the field of goods origin, the Ministry of Industry and Trade has reviewed and adjusted the process of granting preferential C/O to create favorable conditions for export businesses when applying for C/O issuance. In addition, the Customs Department has expedited the process of issuing C/O both in the exporting country and customs clearance based on electronic C/O data to enjoy preferential tariffs under VKFTA and AKFTA at the importing country, optimizing time and costs for businesses.

In 2023, the Vietnamese government issued 1,508,142 sets of preferential C/O with a value of 86.1 billion USD, an increase of 9.2% in value and 1.9% in number of C/O compared to the previous year. The preferential C/O issuance rate of 37.35% showed that businesses are taking better advantage of FTAs in the context of complex economic and political developments.

Responding to trade defense

By the end of 2023, Vietnam's exported goods were involved in 242 investigation cases related to trade defense. The Ministry of Industry and Trade continues to coordinate with relevant ministries, branches and agencies to deploy activities to help businesses respond to trade defense cases in many different markets and regions to protect the interests of exporters and customers.

Enforce trade agreements

In 2023, Vietnam organized many conferences and seminars on the EVFTA, CPTPP, UKVFTA, RCEP trade agreements and direct discussions with leaders of large steel enterprises to come up with strategies to promote growth of Vietnamese steel export.

In addition, the Vietnamese government also expanded the implementation of negotiations, signing and upgrading FTA agreements in 2023. Notably, the Vietnam - Israel Free Trade Agreement (VIFTA), the Vietnam Trade Agreement Comprehensive Economic Partnership (CEPA) between Vietnam and UAE, ASEAN Trade in Goods Agreement, ASEAN-China Free Trade Agreement (ACFTA), Agreement Establishing the ASEAN-Australia Free Trade Area - New Zealand (AANZFTA), ASEAN - Canada Free Trade Agreement (ACaFTA), ASEAN - Hong Kong, China Free Trade Agreement (AHKFTA), ASEAN - Korea Trade in Goods Agreement (AKTIGA), ASEAN-Japan Comprehensive Economic Partnership Agreement.

Vietnam Boosts Trade Ties in 2023: Signs and Upgrades Multiple FTAs, Including the Vietnam-Israel FTA
Vietnam Boosts Trade Ties in 2023: Signs and Upgrades Multiple FTAs, Including the Vietnam-Israel FTA

MRS Steel has compiled notable points in the report on Vietnamese steel exports situation in 2023. We hope that the above useful information has helped importers better understand the context of the Vietnamese steel market and future cooperation opportunities. If you need to learn about the Vietnamese steel market and products, please contact MRS Steel for the best support.

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