Vietnam Meets 25 per cent of Domestic Need for Steel Ingots

Vietnam currently produces just 25 per cent of total steel ingots that the domestic market requires, says Pham Chi Cuong, chairman of the Vietnam Steel Association (VSA).

 

Annually, the steel industry needs four million tons of steel ingots for steel production while the domestic steel ingot output reaches only 1.4 million tons, Cuong said, adding that the remainder is imported.

 

Experts in the field forecast that many enterprises in Vietnam’s steel industry, which is employing some 20,000 people, can go bankrupt after Vietnam joins the World Trade Organization (WTO).

 

The steel industry is experiencing an imbalance and foundationless development, Nguyen Tien Nghi, vice chairman of the Vietnam Steel Association said, adding that local steel makers import up to 80 per cent of steel ingots for their production each year. He expects steel ingot imports will be lowed to less than 75 per cent this year.

 

Foreign-invested companies such as Viet-Uc (Vietnam-Australia), Vinakioey and Viet-Han (Vietnam-South Korea) are making profits and gradually controlling the market.

 

The steel industry is now in need of huge investment capital. To be able to compete, the industry must self-produce steel ingots while building and operating a steel ingot factory requires more than $3 billion – the figure is out of the steel industry’s reach.

 

This year, steel makers in the country are able to supply 3.8 million tons of construction steel to the market, of which steel companies under the Vietnam Steel Association account for 3.2 million tons.