(Construction) - Growth of Vietnam's steel industry in recent years has been at double digits. The production output of crude steel (steel billet) of domestic enterprises in 2021 is 23 million tons, 4.6 times higher than the output in 2011 and more than 70 times higher than 2001.
Previously, every year, Vietnam imported all HRC, many million tons of long steel, construction steel, billet. However, with great investment, enterprises in the industry are gradually helping Vietnam to be self-sufficient in steel sources, reducing imports, and gradually increasing the value of Vietnamese steel exported to the world.
Crude steel production output more than 70 times in 20 years
Over the past time, Vietnam's steel industry has grown tremendously in both production scale as well as product categories. According to the Vietnam Steel Association, in 2000, the total billet capacity of the whole industry was only about 300,000 tons, and finished steel production was only 2.4 million tons. The production scale of the factories is very small, and the equipment lines are outdated. Steel mills mostly have to import billet from countries, mainly China, to roll out construction steel to serve the market.
Vietnam's crude steel production capacity has increased sharply from 2010 onwards, similar to Hoa Phat's process of promoting investment in the steel sector.
From 2010 onwards, Vietnam's steel industry seems to have changed. When the demand for steel increases, Vietnamese enterprises have the conditions to expand production and business activities and invest in depth in projects to meet the highest economic development of the country.
Therefore, a number of large-scale steel production projects with modern equipment, in-depth and self-contained investment have been formed and put into operation, attracting attention from other key industries such as: mechanical engineering, construction, defense, ....
Vietnamese steel manufacturing enterprises, in which emerging is Hoa Phat Group, are very "expensive" when continuously investing tens of thousands of billions of dong to build large iron and steel production complexes, develop new Quality steel products are not only favored by domestic and international markets, but also help Vietnam become more self-reliant in steel products, replacing imports.
Growth of Vietnam's steel industry in recent years has been at double digits. The production of crude steel (steel billet) of domestic enterprises has grown tremendously, reaching about 23 million tons in 2021, more than 70 times higher than 20 years ago. The total output of finished steel products of all kinds in 2021 will reach about 30 million tons. This capacity is fully sufficient to meet the needs of domestic and export markets.
The position of Vietnamese steel in the Top 20 countries with the largest crude steel production in the world.
Vietnam's steel industry is considered to have a very strong growth rate in the region, so far it has risen to the 13th position in the world. This is a remarkable achievement for Vietnamese steel on the world map of steel industry.
Chairman of the Vietnam Association of Mechanical Enterprises (VAMI) Dao Phan Long said that in the 2000s, Vietnam's steel industry was still very young, the technology was outdated, small and scattered, but so far it has made great progress. in terms of scale, output and technology equivalent to world class. Enterprises have been able to independently produce hot-rolled coils, high-quality special-purpose steel, wire-drawn steel, welded rod core steel, prestressed steel, etc. to replace imported goods. This shows that the superiority of technology and equipment line system of domestic steel enterprises is now more advanced, catching up with the world level, helping to optimize added value for enterprises. , and at the same time well control environmental issues.
In the context of the global supply chain being disrupted, in 2021, Vietnam will still export more than 14 million tons of steel, earning more than $12.7 billion, contributing a great deal to foreign currency revenue for the country. Vietnam's steel products have been present in more than 30 countries in the region and the world. This has helped Vietnam's steel industry to surpass the export record for the first time and join the top steel exporting countries with a turnover of more than 10 billion USD.
According to a recent report from the Vietnam Steel Association (VSA), in the first 5 months of 2022, crude steel production reached nearly 9.6 million tons, a slight decrease over the same period. The total volume of finished steel products of all kinds reached 14 million tons, up 5.5% compared to the first 5 months of 2021. Sales of finished steel reached 12.9 million tons, up 7.9% over the same period. In which, exports contributed 3 million tons, up nearly 10%, focusing on ASEAN, EU, US, Canada, Korea, Japan...
What does "the leading bird" of Vietnamese steel have?
In 2001, Hoa Phat Group started to deploy the first factory in the field of construction steel. Over the past 21 years, Hoa Phat Group has made great strides in the field of iron and steel and related products. With 8.5 million tons/year, Hoa Phat's crude steel production capacity increased 28 times compared to 2003, making Hoa Phat the largest steel producer in Vietnam, equivalent to the position in the Top 50 steel manufacturers. the world's largest. (According to the announcement of Worldsteel 2022).
Hoa Phat's crude steel production capacity has increased rapidly, especially since 2010 until now.
In 2007, Hoa Phat restructured its operations according to the Group model, in which steel is the main field. Construction steel output in 2007 reached 233,000 tons, an increase of 30% compared to 2006 and entered the Top 5 enterprises with the largest market share.
In August 2007, Hoa Phat Iron and Steel Complex in Hai Duong was officially started on a scale of 132ha, divided into 3 phases with a total initial capacity of 1.7 million tons. This is the first large-scale closed iron and steel production project from iron ore to billet, construction steel of Hoa Phat Group.
In the second quarter of 2016, this Complex completed and ran synchronously all 3 phases, bringing the total capacity of Hoa Phat construction steel to more than 2 million tons/year. Right in 2016, for the first time, Hoa Phat Steel surpassed Vietnam Steel Corporation and rose to the top of the construction steel market with an output of 1.8 million tons, a market share of 22%.
And for long-term growth, Hoa Phat Group has decided to invest in Hoa Phat Dung Quat Iron and Steel Complex (Quang Ngai) from March 2017. With a scale of over 5 million tons/year, the Complex is divided into 2 phases, producing 2.6 million tons of billet, construction steel, high quality coil steel and 3 million tons of hot rolled coil per year.
After 4 years, the whole project was completed and put into operation synchronously in January 2021. From this point on, Hoa Phat's crude steel production capacity has surpassed Formosa Ha Tinh to become the largest steel producer in Vietnam as well as in Southeast Asia.
Thanks to the increasingly high and stable output of Dung Quat Complex, Hoa Phat's market share of construction steel has increased sharply from 1% in 2002 to more than 35% today, leading the Vietnamese market.
Besides construction steel, Hoa Phat steel pipe also occupies the leading market share in the country with a production capacity of 1 million tons/year. Hoa Phat coated steel sheet, although just launched in 2018, has now reached the Top 5 market share of the largest manufacturer in Vietnam.
Especially, from 2020, Hoa Phat Dung Quat Iron and Steel Production Complex has launched hot rolled coil products, making the Group the first domestic enterprise to produce industrial steel with added value. this increase.
Commenting on Hoa Phat's role in Vietnam's steel industry, Mr. Le Chi Phuc, General Director of SGI Investment Fund said: "In the past, every year, Vietnam imported all HRC, many millions of tons of long steel and steel. construction, billet steel. From 2021, HPG will become the largest crude steel producer in Vietnam, also the top in Southeast Asia. Hoa Phat produces raw ore from upstream to finished products, helping businesses in the industry to be self-sufficient in HRC and billet sources, replacing many billions of dollars in imports, and gradually increasing the value of Vietnamese steel exported to the world. . The biggest thing HPG has done is to help Vietnam no longer depend much on imported steel, especially from China.
In the next 5 years, Hoa Phat is preparing to implement the Hoa Phat Dung Quat 2 Iron and Steel Complex project with a capacity of 5.6 million tons of HRC steel/year. It is expected that when completed in 2025, Hoa Phat will reach an output of 14 million tons/year, reaching the Top 30 largest steel enterprises in the world. In addition, the Group also implemented many other projects to optimize the steel production value chain, apply the latest technological achievements, towards green production and digitize production and business activities.
Van Phuong
