Proposal to develop the development strategy of Vietnam's steel industry to 2030

The Ministry of Industry and Trade has just submitted a report proposing to develop the "Strategy to develop Vietnam's steel industry to 2030, with a vision to 2050". This agency believes that it is necessary to have specific policies to help further develop the steel industry.

Proposal to develop the development strategy of Vietnam's steel industry to 2030

Special policies are needed to help further develop the steel industry
Implementing the direction of the Deputy Prime Minister in Document No. 97/VPCP-CN dated January 5, 2022 of the Government Office on assigning the Ministry of Industry and Trade to study and absorb the opinions of the Ministry of Planning and Investment. Document No. 6501/BKHĐT-KTN dated October 27, 2021, Ministry of Natural Resources and Environment (Document No. 6152/BTNMT-ĐCKS dated October 11, 2021) proposing to develop a steel industry development strategy, after when summarizing, the Ministry of Industry and Trade has officially reported to the Prime Minister.

Accordingly, about the competitiveness of the steel industry, the report said: In recent years, the steel industry has had a strong development in capacity as well as technology. A number of steel factories with large capacity and high quality steel have been invested and put into operation such as Hoa Phat Dung Quat Iron and Steel Complex, Nghi Son Iron and Steel Joint Stock Company, Hung Nghiep Formosa Ha Tinh Iron and Steel Complex. … As of 2021, the billet production capacity of domestic enterprises is 27 million tons/year, of which hot-rolled coil (HRC) is 7-8 million tons/year.

With construction steel, the domestic production capacity of about 14 million tons will ensure 100% of domestic consumption demand as well as meet a part of export demand. In which, 42% of production is used from imported steel scrap; 58% is produced from blast furnaces, using iron ore as raw materials. Or like steel for mechanical engineering and manufacturing, Vietnam has also produced and supplied a part of HRC hot rolled coil (about 8 million tons/year).

As for alloy steels, Vietnam has not yet been able to produce special steels.

However, besides new construction factories with large capacity such as Hoa Phat Dung Quat Iron and Steel Complex, Hung Nghiep Formosa Iron and Steel Complex, Nghi Son Steel... the remaining billet manufacturing plants mainly have small capacity, outdated equipment, and limited steel production capacity. Domestically produced steel products cannot supply enough steel demand for the whole economy.

The competitiveness of Vietnam's steel industry is considered by the Ministry of Industry and Trade to be quite low when most of the input materials for steel production must be imported. Besides, there are still factories with small capacity, outdated equipment, energy consumption and environmental risks.

Besides, Vietnam's steel industry basically depends on foreign imported raw materials such as iron ore, scrap steel, coking grease, graphite electrode... so when the price of input materials fluctuates, it will As a result, the domestic finished steel price must also be adjusted according to the world market.

The Ministry of Industry and Trade forecasts that in 2022, Vietnam will have to import many types of materials for steel production such as iron ore for blast furnaces about 18 million tons, scrap steel about 6-6.5 million tons for furnaces. electricity, coking lignite about 6.5 million tons and graphite electrode about 10,000 tons… and the price of iron ore, scrap steel, raw material ore and coking lignite… remain high, which will directly affect the steel production enterprises and the domestic steel market.

In the long term, in order to meet the demand for HRC hot rolled coil and other high-quality alloy steels in the country, it is necessary to continue to attract and invest in a number of large steel production complexes to serve the demand. domestic market, gradually reducing dependence on imported steel.

There is no specific policy to support the steel industry

According to the report, the steel industry plays a particularly important role in the process of developing the country towards industrialization and modernization; is the foundation industry, input materials for important economic sectors of the country such as mechanical engineering, supporting industry... On the other hand, developing a strong steel manufacturing industry is also creating a foundation. a solid foundation and market development for the manufacturing, construction, and mechanical industries, etc., contributing to a stable supply source and improving the productivity and operational efficiency of the industries.

The steel industry also makes an important contribution to the process of transformation and urbanization of the country, affecting many aspects of socio-economic development. With steel consumption per capita of Vietnam (about 240kg/person/year) still very low compared to other countries in the region such as Malaysia, China, the room and development potential of Vietnam's steel industry. in the near future is huge. Although the steel industry plays a particularly important role in the process of developing the country towards industrialization and modernization, the Ministry of Industry and Trade believes that, at the present time, Vietnam does not have a specific policy. separate to promote, as well as orient to develop the steel industry.

Autonomy in domestic steel production is an indispensable requirement of self-reliance in raw materials for production and consumption of the people, as well as the process of urbanization and modernization of national facilities. Therefore, in order for the steel industry to develop sustainably and stably, the State needs to develop strong enough policies to promote the development of the steel industry, creating a basic foundation for modern industrialization. and sustainable", the report of the Ministry of Industry and Trade stated.

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