Vietnam: steel production growth to reach 20 percent

Domestic steel production is expected to rise by 20 percent year-on-year this year, according to the Vietnamese Ministry of Industry and Trade.

Of these, production will increase by 10 percent for construction steel, 5 percent for cold rolled sheet products, 15 percent for welded products and 12 percent for galvanized steel.

In particular, hot-rolled steel production is expected to increase by 154% over last year. This is due to the fact that Formosa Hà T планируетnh plans to double its production capacity when the second blast furnace with a capacity of 4 million tons per year comes into operation in the second half of the year. This will push the total capacity of Fomosa Hà Tĩnh to 7-8 million tons per year.

In addition, several other projects are planned for this year, such as the Hòa Phát Group steel rolling project with a capacity of 600,000 tons, the launch in August and the Hoa Sen Group production line with a capacity of 350,000 tons. Meanwhile, Tung Ho will put into operation a construction steel production line with a total capacity of 600,000 tons.

Nguyen Won Xia, vice chairman of the Viët Nam Steel Association, said, "With such favorable factors, the steel industry will maintain growth this year, increasing production by 20 percent over last year."

However, the steel industry still faces many challenges and challenges, including trade protectionism, which means countries are implementing tariff barriers to reduce imports of goods from other countries, including Vietnam.

Vietnam's exported steel products are facing lawsuits in the United States, Australia, Indonesia, Malaysia, Thailand, and India.

This is a challenge that requires businesses to ensure sustainable production growth in order to reach the export target of 5 million tonnes this year.

According to the ministry, the volume of iron and steel production in the first half of the year amounted to about 4.69 million tons, which is 7% more than last year.

The reason for the positive trend during this period was the continued growth of the domestic economy. Many infrastructure and real estate projects started construction in the first half of this year.

At the same time, the government's allocation of state investment capital in the first months of the year also created good conditions for the growth of the steel industry.