Posted on 11 Apr 2025
Vietnam’s domestic finished steel demand and production are forecast to remain strong in 2025, following the national steel industry’s strong performance last year, according to the Vietnam Steel Association (VSA).
Vietnam’s steel production is expected to grow by 8-10% this year versus 2024 to around 31 million tonnes, while domestic demand is projected to rise by 4.5% to 24.5-25mt, VSA chairman Nghiem Xuan Da told delegates at Kallanish Asia Steel Markets 2025 in Ho Chi Minh City on Wednesday. "This growth is supported by a resilient domestic economy, increased infrastructure investment, and strong regional partnerships,” Nghiem said.
He noted overcapacity is prevalent in the industry and trade barriers could hinder exports. “Regional shifts and external forces are complicating the outlook for the industry, including trade barriers and tariffs from the US and EU and tensions within Asia, and there are other factors such as geopolitics and climate changes that are affecting and influencing the industry,” he continued.
The Vietnamese steel industry is embracing cleaner technologies and has aligned itself with the Vietnamese government’s pledge to achieve net-zero emissions by 2050, he added.
Last year, the country saw apparent consumption of finished steel surge by 15% on-year to 24mt and finished steel production rose by 7% to nearly 30mt, noted Trang Thi Thu Ha, chief of VSA's office. With the exception of hot rolled coil, production of all other steel products rose.
In 2024, long products accounted for 44% of total demand, whereas flats took 56%, Trang observed. In 2023, this was 47% and 53% respectively. The VSA projects that flat product demand will continue to increase this year.
Production of construction longs, cold rolled coil, zinc-coated and aluminium-zinc coated steel, and steel pipe grew last year by 13.9%, 25%, 12% and 9.4% respectively. HRC production fell by 10.2%.
In 2024, crude steel production recorded around 22mt, up 14% year-on-year, while consumption also rose by 14% to 21.4mt. Export of crude steel reached 2.8mt, up by a massive 55% year-on-year.
Imports of finished steel into Vietnam also registered an increase. These grew by nearly 33% to exceed 17mt. Exports of finished steel rose by 12% to around 13mt.
Source:Kallanish
