Vietnam’s crude steel production is expected to increase by six to eight percent this year, according to the Vietnam Steel Association (VSA). In 2020, domestic crude steel production is expected to reach almost 18 million mt, while hot rolled steel output is foreseen to rise to 17.1 million mt.
The association also indicated that many proposed integrated steel projects in the ASEAN region will lead to serious oversupply and that it will take about 20 years for ASEAN steel consumption to catch up with this capacity.
The local Vietnamese steel industry has continued to face challenges due to competitive pressure from increasing domestic supply and imported steel, as well as tightened lending credit to the domestic real estate market and delayed construction work.