Vietnam's steel industry started to take shape in the early 1960s when the first batch of cast iron was produced with the assistance of China. Within 15 years after rolled steel was first manufactured in 1975, the development of the steel market was perfunctory. Instead of producing domestically at a high cost, Vietnam imported cheap steel from the post-Soviet states and Eastern European countries to meet the domestic output demand ranging from 40,000 to 80,000 tons/year.
Since 1990, with the establishment and management of Vietnam Steel Corporation, the steel industry has made remarkable progress, leading to the increasing foreign and domestic investments in this market. Besides, other investors from the sectors of mechanics, construction, and national defence also grew their interests in the steel industry. The establishment of private, affiliated or foreign-owned steel enterprises has been contributing to the strong development of Vietnam's steel market.
In the past 5 years, steel production in Vietnam market has continuously developed and gradually focused on the beginning stages of the value chain to manufacture semi-finished products for the steel production stage. Domestic production of construction steel, steel pipes and galvanized steel products all surged in the period 2015-2018 with an increase of 51%, 69% and 40% respectively. Since 2017, the Government has been more cautious about planning the steel industry in association with environmental protection, after several serious environmental incidents related to FDI steel enterprises.
With strong growth in recent years, Vietnam's steel industry has made significant progress in the region and played an increasingly important role in Southeast Asia’s steel market, improving its position in the world steel industry. According to World Steel, Vietnam ranked 14th in the 2019 top 50 largest crude steel-manufacturing countries globally, up 12 levels in 5 years from 26th place in 2014. Besides, Vietnam was the 4th largest steel importer in the world with an output of 10.5 million tons in 2019. In Southeast Asia, Vietnam took the leading position in steel production with an output of 14.5 million MT in 2018, accounting for more than 30% of the region's total finished product output. Vietnam was also the leader in steel export in the region with the volume increased from 1 million MT in 2010 to 6 million MT in 2018. However, in 2019, Vietnamese steel industry faced many difficulties due to the increasing protectionism in Vietnam’s major export markets, coupled with a decline in the real estate market. Steel production output in 2019 was at the lowest level in 4 years, up 4.4% compared to 2018.
Since the beginning of 2020, the Covid-19 pandemic has negatively impacted on both global and Vietnam’s steel industry. Steel producing, trading and exporting activities were all affected, causing the domestic steel companies to suffer heavy losses in profit margins. Besides, the protectionism in the international market is getting tighter, and at the same time, the construction and real estate market in Vietnam has not shown signs of recovery, are also bringing more difficulties for the steel industry.
CONTENTS
List of charts
List of tables
List of acronyms
1. Macro-economic situation
1.1. Economic growth
1.2. Trade and prices
1.3. Investment capital and State budget revenue and expenditure
1.4. Import and Export
1.5. Establishment and dissolution of enterprises
2. Overview of Vietnam’s Steel Industry
2.1. Steel Industry Value Chain
2.2. Enterprise and labor structure in the industry
2.3. Market shares in Vietnam’s steel industry
2.4. Legal Environment
3. Development situation of Vietnam’s Steel Industry
3.1. Steel demand of Vietnam’s market
3.2. Steel consumption of Vietnam’s market
3.3. . Steel production of Vietnam’s market
3.4. . Steel sales and import-export activities in Vietnam’s market
3.5. Steel industry average financial ratios 2019
4. Opportunities, Challenges and Industry development prospects
5. Outstanding companies in steel industry in 2019
LIST OF CHARTS
Figure 1.1.1: Vietnam GDP Growth Rate 2011-2020
Figure 1.2.1: Total retail sales of consumer goods and services at current prices 2015-2019
Figure 1.2.2: GDP Growth, CPI and Inflation (Last year = 100)
Figure 1.2.3: Producer price index by sector
compared to previous quarter
Figure 1.2.4: Commodity terms of trade growth rate 2015-2019 (%)
Figure 1.3.1: Growth rate and structure of social investment capital in the first half of 2016-2020 period at current prices
Figure 1.4.1: Import-export turnover and trade balance of goods 2011-2019 (US $ billion)
Figure 1.5.1: Enterprise Establishment in H1//2020 (compared to H1/2019)
Figure 2.2.1: Enterprise and labor structure in Vietnam’s iron and steel industry
Figure 2.3.1: Market share of construction steel consumption
Figure 2.3.2: Market share of galvanized steel sheet consumption
Figure 2.3.3: Market share of steel pipe consumption
Figure 3.1.1: Forecast of urbanization rate in Vietnam by 2050
Figure 3.1.2: Population growth and labor force population structure in 2005-2019 period
Figure 3.2.1: ASEAN Apparent Steel Consumption 2000-2018 (million MT)
Figure 3.2.2: Structure of steel consumption in ASEAN’s major steel markets
Figure 3.3.1: Steel production material prices in the period of 2017-2020
Figure 3.3.2: Steel production and growth of steel production in 2015-2020
Figure 3.3.3: Finished steel production in 2018-2020
Figure 3.4.1: Finished Steel Sales in 2018-2020
Figure 3.4.2: Structure of Vietnam’s iron and steel import from major markets in the first 7 months of 2020
Figure 3.4.3: Value of Vietnam’s iron and steel import from major markets in the first 7 months of 2020
Figure 3.4.4: Vietnam’s iron and steel import to from major markets in the first 7 months of 2020
LIST OF TABLES
Table 1.1.1. GDP growth by sector Q2/2020 at current prices
Table 2.4.1: Safeguard taxes applying for billets and long steel products until 2023
Table 3.1.1: Forecast of Vietnam’s crude steel demand until 2025, with a vision to 2035
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C - Manufacturing
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10 - Manufacture of food products
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101 - Processing and preserving of meat and meat products
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102 - Processing and preserving of fisheries and fishery products
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103 - Processing and preserving of fruit and vegetables
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104 - Manufacture of vegetable and animal oils and fats
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105 - Manufacture of dairy products
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106 - Milling and manufacture of flour
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107 - Manufacture of other food products
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108 - Manufacture of feeds for cattle, poultry and aquatic animals
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11 - Manufacture of beverages
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110 - Manufacture of beverages
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12 - Manufacture of tobacco products
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120 - Manufacture of tobacco products
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13 - Manufacture of textiles
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131 - Spinning, weaving and finishing of textiles
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139 - Manufacture of other textiles (132)
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14 - Manufacture of wearing apparel
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141 - Manufacture of wearing apparel, except fur apparel
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142 - Manufacture of articles of fur
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143 - Manufacture of knitted and crocheted apparel
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15 - Manufacture of leather and related products
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151 - Tanning and dressing of leather; manufacture of luggage, handbags, saddlery
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152 - Manufacture of footwear
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16 - Manufacture of wood and of products of wood and cork,except furniture; manufacture of articles of straw and plaiting materials
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161 - Sawmilling, planing and preserving of wood
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162 - Manufacture of wood and of products of wood and cork, except furniture; manufacture of products of straw and plaiting materials
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17 - Manufacture of paper and paper products
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170 - Manufacture of paper and paper products
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18 - Printing and reproduction of recorded media
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181 - Printing and service activities related to printing
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182 - Reproduction of recorded media
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19 - Manufacture of coke and refined petroleum products
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191 - Manufacture of coke
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192 - Manufacture of refined petroleum product
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20 - Manufacture of chemicals and chemical products
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201 - Manufacture of basic chemicals, fertilizers and nitrogen compounds, plastics and synthetic rubber in primary forms
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202 - Manufacture of other chemical products
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203 - Manufacture of man-made fibres
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21 - Manufacture of pharmaceuticals, medicinal chemical and botanical products
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210 - Manufacture of pharmaceuticals, medicinal chemical and botanical products
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22 - Manufacture of rubber and plastics products
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221 - Manufacture of rubber products
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222 - Manufacture of plastics products
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23 - Manufacture of other non-metallic mineral products
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231 - Manufacture of glass and glass products
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239 - Manufacture of non-metallic mineral products n.e.c
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24 - Manufacture of basic metals
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241 - Manufacture of iron, steel and cast iron
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242 - Manufacture of precious and non-ferrous metals
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243 - Casting of metals
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25 - Manufacture of fabricated metal products, except machinery and equipment
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251 - Manufacture of structural metal products, tanks, reservoirs and steam generators
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252 - Manufacture of weapons and ammunition
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259 - Manufacture of other fabricated metal products; metalworking service activities
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26 - Manufacture of computer, electronic and optical products
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261 - Manufacture of electronic components and boards
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262 - Manufacture of computers and peripheral equipment
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263 - Manufacture of communication equipment
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264 - Manufacture of consumer electronics
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265 - Manufacture of measuring, testing, navigating and control equipment; watches and clocks
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266 - Manufacture of irradiation, electromedical and electrotherapeutic equipment
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267 - Manufacture of optical instruments and photographic equipment
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268 - Manufacture of magnetic and optical video tapes and discs
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27 - Manufacture of electrical equipment
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271 - Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus
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272 - Manufacture of batteries and accumulators
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273 - Manufacture of wiring and wiring devices
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274 - Manufacture of electric lighting equipment
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275 - Manufacture of domestic appliances
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279 - Manufacture of other electrical equipment
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28 - Manufacture of machinery and equipment n.e.c
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281 - Manufacture of general-purpose machinery
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282 - Manufacture of special-purpose machinery
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29 - Manufacture of motor vehicles; trailers and semi- trailers
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291 - Manufacture of motor vehicles and other motor vehicles
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292 - Manufacture of bodies (coachwork) for motor vehicles and other motor vehicles; manufacture of trailers and semi-trailers
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293 - Manufacture of parts and accessories for motor vehicles and other motor vehicles
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30 - Manufacture of other transport equipment
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301 - Building of ships and boats
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302 - Manufacture of railway or tramway locomotives and rolling stock
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303 - Manufacture of air and spacecraft and related machinery
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304 - Manufacture of military fighting vehicles
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309 - Manufacture of transport equipment n.e.c.
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31 - Manufacture of furniture
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310 - Manufacture of furniture
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32 - Other manufacturing
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321 - Manufacture of jewelry, bijouterie and related articles
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322 - Manufacture of musical instruments
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323 - Manufacture of sporting equipment
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324 - Manufacture of games and toys
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325 - Manufacture of medical and dental, and orthopedic and rehabilitation instruments and supplies
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329 - Other manufacturing n.e.c.
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33 - Repair and installation of machinery and equipment
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331 - Repair and maintenance of fabricated metal products, machinery and equipment
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332 - Installation of industrial machinery and equipment
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13 - Manufacture of twine and net
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131 - Spinning, weaving and finishing of textiles
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139 - Manufacture of other textiles (132)
