In the first quarter of 2022, despite many difficulties and challenges due to the COVID-19 pandemic, the production and consumption of finished steel grew by 3.2% and 7.7%, respectively, compared to the same period.

Signals of Good Growth

On 18 April, the Vietnam Steel Association (VSA) published a report on the situation of the Vietnamese steel market in March and the first quarter of 2022.

Accordingly, in March 2022, finished steel production reached 3.338 million tons, an increase of 29.16% compared to February 2022 and an increase of 6.8% compared to the same period in 2021. Consumption of steel of all kinds reached 3.123 million tonnes, an increase of 21.3% compared to the previous month and an increase of 2.4% compared to the same period. “Overall, compared to the same quarter of 2021, finished steel production reached 8.456 million tons, an increase of 3.2%; finished steel consumption reached 8.137 million tons, an increase of 11.9%“- VSA report details.

Notably, in terms of exports, in March 2022, Vietnam’s finished steel exports reached 956 thousand tons, an increase of 75.41% compared to the previous month, but a decrease of 22.8% compared to the same period in 2021. Export value reached $908.63 million, up 71.87% compared to February 2022 and up 1.05% compared to the same period in 2021.

Overall, in Q1/2022, Vietnam exported about 2.275 million tonnes of steel, down 22.15% year-on-year. Export value reached US $2.3 billion, an increase of 12.53% compared to the same period in 2021.

Vietnam’s main export markets in the first quarter of 2022 focused on ASEAN regions (40.57%), the EU region (19.32%), the United States (8.34%), South Korea (6.97%) and Hong Kong (3.91%).

According to some experts’ forecasts, in 2022, domestic steel consumption will grow well based on increased public investment disbursements, focus on infrastructure, and civil construction activities recovering as the epidemic is controlled.

Specifically, the National Assembly approved an economic recovery support package worth VND 350,000 billion, of which VND 113,850 billion is allocated for infrastructure development, focusing on key projects such as the North – South East expressway, Long Thanh airport, large logistics ports…, which are accompanied by increased iron and steel consumption.

Capacity building, adaptation for development

Currently, Vietnam has participated in 15 FTAs, which creates opportunities to increase exports as well as require the manufacturing industry to adapt to develop…Besides, steel enterprises also have more opportunities to promote production and export to new markets.

Mr. Nghiem Xuan Dich – VSA Chairman said that in order to create incentives for the steel industry to develop, Resolution 01/NQ-CP issued on January 9, 2022 with solutions for development and socio-economic recovery will promote production and business, boost exports and accelerate the disbursement of public investment capital.

The mobilization of all resources for infrastructure development will support the stronger development of the steel industry, helping businesses stabilize their production and business activities towards flexible adaptation to the Covid-19 pandemic.

Mr. Nghiem Xuan David also said that for Decree 101/2021/ND-CP amending and supplementing a number of articles of Decree 122/2016/ND-CP and Decree 57/2020/ND-CP to contribute to macroeconomic stability, inflation control has been issued, the steel industry always complies and will implement effectively in the coming time.

“Steel enterprises identify this as both a challenge and an opportunity that requires steel enterprises to constantly innovate technology, reduce costs and improve competitiveness in the current post-Coviet context,”- VSA President stressed.

However, VSA also recommends that the Government and relevant ministries and sectors take the lead in developing and soon promulgating national standards for color-coated and plated products. At the same time, guiding the process of participation of parties such as state agencies, associations and enterprises to have national standards in line with the current trend of global integration. Vietnamese standards also need to adapt to other countries’ standards so that Vietnamese products can be promoted and sold to foreign markets.

In addition, in order to ensure the supply-demand balance in 2022, VSA recommends that the State has policies to encourage investment, promote and protect domestic steel production consistently and steadily. In addition, state agencies support enterprises in applying trade defense measures to protect domestic production, as well as responding to countries’ trade defense cases against Vietnam’s imported steel goods in order to minimize the damage to enterprises.

Source: Cong Thuong