Statistics from VSA showed that in the first four months of the year, steel consumption has seen a strong increase of 1.3 million tonnes, posting 49 per cent year-on-year rise. — Photo tuoitre.vn

HA NOI (Biz Hub) — Viet Nam's steel industry is facing difficulties, especially from imported steel products with cheaper prices, Ho Nghia Dung, chairman of Viet Nam Steel Association, said.

Dung told an international conference and exhibition on renovation and enhancing competitiveness capacity of ASEAN steel industry held in Ha Noi yesterday that Viet Nam's steel industry has been one of those with the highest growth rate in the Southeast Asian region. However, there is a large number of small scale steel producers with low competitiveness and lack of modern technologies and equipment who are affecting the environment.

"Domestic steel businesses should renew their technologies, equipment and management while enhance their integration into the region and the world by improving their competitiveness and effectiveness in the context of abundant steel supply," he added.

Nghiem Xuan Da, general director of Viet Nam Steel Corporation, said that the exhibition and conference have been a good opportunity for steel producers both in Viet Nam and the ASEAN region to exchange information and find solutions to improve competitiveness and effectiveness.

In recent years, the steel industry in the world and in the ASEAN region has suffered big impacts from cheap steels. This has required regional steel producers to better co-operate and improve competitiveness, Da said.

The exhibition that kicked off yesterday has been showcasing products of 62 booths and two exhibition rooms.

Several big steel producers in the world such as ABB AB Metallurgy, Danieli, Primetals Technologies and Technova joined the three-day event.

Viet Nam has eight booths including Viet Nam Steel Corporation, Hoa Sen Group, Hoa Phat Group, Vinakyoei va Posco.

The technical conferences on the steel and visits to Viet Duc, VnSteel Thang Long and Formosa plants would also be taking place at the event.

Steel shows strength

Several steel products saw a surge in productivity in May. The bar and angle steel products showed the highest increase of 22.5 per cent, following by rolled steel with 21 per cent.

Statistics from VSA showed that in the first four months of the year, steel consumption has seen a strong increase of 1.3 million tonnes, posting 49 per cent year-on-year rise.

The association forecast that domestic steel prices would be increased 10 per cent to VND11.4 million (US$506) per tonne in the upcoming times. — VNS