In Viet Nam, the supply is more than two times higher than the demand, which is unreasonable," Thai said. — Photo cafef.vn

HA NOI (Biz Hub) — The Viet Nam Steel Association (VSA) recently asked relevant ministries and sectors to revoke the licences of nearly 30 steel projects that have not implemented production technology standards.

Deputy Chairman of the VSA Do Duy Thai said the country's capacity to produce construction steel had reached 11 million tonnes per year, of which more than five million tonnes were sold. Therefore, it's necessary to immediately consider terminating steel projects that are not conforming to the industry's planning or still use backward technologies.

"Normally, the supply is allowed to be a maximum 30 per cent higher than the demand. In Viet Nam, the supply is more than two times higher than the demand, which is unreasonable," Thai said.

Other countries have controlled the gap between supply and demand at about 20 to 30 per cent, a level which enabled the steel industry to maintain development, Thai said.

According to the VSA, 42 projects have registered for operations in the 2013-25 period, of which 28 projects may not be feasible because they have failed to follow the regulations set by the steel industry. — VNS