The Viet Nam Steel Association (VSA) has suggested to the Ministry of Industry and Trade (MoIT) that the government should stop managing the steel industry through a draft zoning plan.

The plan is for Viet Nam’s steel sector until 2025 with a vision towards 2035.

VSA’s vice chairman Nguyen Van Sua, said in a document that suggests opinions to the draft of the Law on Planning submitted to the National Assembly for approval, that economic sectors including steel should not be managed by planning but other laws such as the Law on Enterprises, the Law on Investment, the Law on Standards and Quality and the Law on Environment Protection.

This was the reason why the draft zoning plan for Viet Nam’s steel sector was to be a reference for businesses before deciding their investment if the Law on Planning was approved by the beginning of 2018, he said.

In addition, the granting of steel projects would be implemented by several relevant ministries and not just the Ministry of Industry and Trade.

According to the Law on Planning which has been discussed in the National Assembly since September, 21 sectors would have to need planning at the national level as they relate to usage of maritime resources and largescale infrastructure. Most of other sectors including steel would no longer be the responsibility of the ministry.

VSA said the steel sector has not encouraged foreign investment into normal steel projects but in high quality and alloy steel.

Local steel producers are capable of investing in steel projects with a capacity of 4 million tonnes to 7 million tonnes a year. Foreign investors have also made up a high portion in the sector, it added.

The association noted that the MoIT’s draft has seen shortcomings as it did not provide development targets of the hot rolled and high quality steels, as Viet Nam has imported 100 per cent of these products.

Specially, the ministry still put the expansion of the Thai Nguyen Iron and Steel Corporation phase 2 in the draft zoning plan despite losses.

VSA proposed that the MoIT should have solutions to thoroughly resolve issues with the projects which have not started their construction or are unfeasible, even in the period between 2017 and 2025.

At a recent Q&A session of the National Assembly, the minister, Tran Tuan Anh said the country would not implement industrial projects that are harmful to the environment and that no interest groups could influence the project approval process.

The ministry wants to seek sustainable growth for major industrial sectors and extract natural resources efficiently.

The minister then reiterated that Viet Nam really needs more steel projects, because by 2020 the country will have to earmark US$15 billion a year on imported steel.

VSA’s figures revealed that last year Viet Nam imported more than 14 million tonnes of steel. It is estimated that this year the country would import around 17.5 million tonnes. — VNS