Steel sector set for 20% growth

Saturday, Jan 27, 2018 10:00

The steel industry is anticipated to continue double digit growth this year. — File Photo

The Viet Nam Steel Association has predicted a year-on-year increase of 20-22 per cent in steel production this year.

Nguyen Van Sua, the association’s deputy chairman, said at a meeting on Thursday a number of steel projects would become operational this year, including a plant of Hoa Phat Group in central Quang Ngai Province, with an annual capacity of two million tonnes, a three-million tonne capacity plant of Formosa in Ha Tinh Province, a 350,000 tonne-capacity production line of Hoa Sen in Binh Dinh and three plants of Pomina, Viet-Y and Tung Ho, with a total capacity of 1.8 million tonnes per year.

The new plants would boost steel output significantly, the association said.

Specifically, cast iron is predicted to increase by 75 per cent to reach 7,500 tonnes, steel ingot by 14 per cent to 14,000 tonnes and finished steel products by 19 per cent to 26,230 tonnes.

Sua said the association would proactively participate in developing national standards for steel products and technical barriers as well as promote the application of trade defense instruments to protect domestic industry amidst rapid international integration.

In addition to these, the association would keep a close watch on the import of products that local producers can manufacture and propose measures to promote domestic production.

According to Nghiem Xuan Da, chairman of Viet Nam Steel Corporation, the steel industry has seen rapid increases in capacity, output and demand during the past five years. In 2018, Viet Nam would continue to be a fast-growing market for steel, he said.

He also said the government should increase policies to promote investment and international co-operation and stimulate steel consumption demand by developing industries such as construction, ship building and mechanics.

The association’s statistics revealed that steel output reached more than 22 million tonnes in 2017, a year-on-year increase of 23.5 per cent, with a sale volume of nearly 19 million tonnes, up by 20.7 per cent.

The industry recorded an export revenue of more than US$3.64 billion, up by 45.4 per cent over 2016.

Viet Nam imported nearly 20 million tonnes of steel in 2017, worth $10.5 billion, a drop by 14.2 per cent in volume but a rise of 13.2 per cent in value. — VNS

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