Removing difficulties and protecting domestic steel manufacturing enterprises
- 168
- Enterprise
- 14:32 12/07/2024
DNHN - The steel industry faces many difficulties and challenges in the context of international competition and market fluctuations. Therefore, solutions are needed to remove these difficulties and create favorable conditions for the industry.
![As of May 2024, about 30% of trade defense investigations involve steel products imported from Vietnam As of May 2024, about 30% of trade defense investigations involve steel products imported from Vietnam](https://media.doanhnghiephoinhap.vn/uploads/2024/07/12/screenshot-2024-07-12-at-14-1720769317.png)
Supply exceeds demand
The Vietnam Steel Association (VSA) forecasts that in 2024, Vietnam's finished steel production could reach 30 million tons, up 7% from 2023. On the domestic market, steel consumption is expected to increase by 6.4%, reaching 21.6 million tons, with an estimated inventory of about 8.4 million tons.
Despite these positive expectations, Vietnam's steel industry still faces pressure from large imports. In 2023, Vietnam imported approximately 13.33 million tons of finished steel worth over USD 10.4 billion, up 14.07% from 2022. China remains the largest supplier, accounting for over 62% of total imports and over 54% of total value.
The VSA leader believes that the biggest challenge currently is the significant increase in steel imports from China, putting pressure on the domestic market for Vietnamese steel manufacturers. Meanwhile, global protectionism is on the rise, with countries applying technical and trade defense measures to prevent steel imports, making it difficult for Vietnam to export steel.
Vietnam's steel industry is currently facing significant challenges. The decline in the domestic real estate sector has led to reduced demand for steel in production and export for the construction industries. At the same time, rising raw material prices have increased production costs. Steel inventory remains high, putting substantial pressure on the market.
According to the Ministry of Industry and Trade, steel is one of the commodities frequently investigated for trade defense worldwide. As of May 2024, about 30% of trade defense investigations involve steel products imported from Vietnam
Currently, the range of steel products under investigation is diverse, from coated steel, cold-rolled stainless steel, colored steel, steel pipes, to steel hangers and steel nails. Most lawsuits occur in major markets where Vietnam exports steel, such as the USA, EU, Australia, Malaysia, and Indonesia.
In particular, in the stainless steel segment, Vietnam's production exceeds domestic market demand. Although annual production exceeds 800,000 tons, consumption demand is only about 250,000 tons. Thus, the country imports about 135,000 tons of stainless steel annually to meet production and domestic consumption needs.
The situation of exporting stainless steel is also difficult due to the slow recovery of the global economy, leading to reduced demand from export markets. Moreover, Vietnam's stainless steel faces high trade defense measures in many countries such as Thailand, Malaysia, Turkey, and the USA. Currently, some stainless steel products from Vietnam continue to be investigated in markets like India and the European Union.
Faced with these challenges, Vietnamese stainless steel manufacturers must compete fiercely with competitively priced imported goods in the domestic market, while also striving to expand export markets and minimize potential risks.
Additionally, the situation of supply exceeding domestic demand, along with the increase in steel imports, is leading to fierce price competition in the domestic steel market. Global market instability and rising international shipping costs also pose many risks for Vietnamese steel enterprises in the future.
One of the biggest difficulties that Vietnam's steel manufacturing industry faces is unfair competition from foreign steel producers. In reality, many other countries, especially China, have implemented protective measures to boost steel exports at competitive prices. This has created an imbalance in the market, significantly affecting domestic steel manufacturers.
Enterprises need to create high-quality products
To overcome these difficulties, close cooperation is needed between steel manufacturing enterprises and the government. The government should promote the implementation of reasonable trade defense measures to ensure fair competition. At the same time, it is necessary to strengthen reform and modernize the steel industry to enhance productivity and product quality. Through this, Vietnamese steel manufacturing enterprises will be able to compete strongly in the international market.
Another important aspect that needs attention is enhancing research and development capacity in the steel industry. Investment in research and development will help enterprises create high-quality steel products that meet technical requirements and international standards. Moreover, research and development should focus on using advanced and energy-saving technologies to improve production efficiency and reduce environmental impact.
Additionally, it is essential to promote the training and development of high-quality human resources in the steel industry. This requires cooperation between businesses, universities, and vocational training organizations to train experts and workers with in-depth knowledge and skills in this field. Having a high-quality workforce will help improve productivity and product quality, facilitating the sustainable development of Vietnam's steel industry.
Furthermore, to protect Vietnamese steel manufacturing enterprises, it is necessary to create a favorable and stable business environment. The government should establish support policies and encourage investment in the steel industry, including providing financial packages and infrastructure support. Simultaneously, it is essential to implement measures to reduce administrative procedures, lower costs, and increase transparency in business processes.
Addressing environmental pollution is also a crucial factor in protecting steel manufacturing enterprises. The government should strictly enforce environmental regulations and require businesses to comply to minimize the steel industry's environmental impact. Moreover, encouraging and investing in clean and sustainable technologies to produce steel with lower pollution levels is necessary.
Finally, promoting exports and expanding markets also play an important role in protecting Vietnamese steel manufacturing enterprises. The government needs to create conditions for businesses to access international markets and support building the brand and promoting Vietnamese steel products globally.
To protect and promote the development of Vietnamese steel manufacturing enterprises, it is essential to remove difficulties and create favorable conditions. This requires close cooperation between the government, businesses, and stakeholders. Only with joint efforts and effective solutions can Vietnam's steel manufacturing industry overcome difficulties and ensure sustainable development in the future.
Dai Hai
Related news
#trade remedies
![Ministry helps enterprises effectively deal with trade remedies](https://media.doanhnghiephoinhap.vn/uploads/2022/05/30/tai-xuong-1653905000.jpg)
Ministry helps enterprises effectively deal with trade remedies
The Ministry of Industry and Trade (MoIT) will continue to coordinate with relevant ministries and sectors in supporting businesses to minimise impacts of trade remedies which may have an detrimental effect on Vietnam’s export activities.
Đọc thêm Enterprise
Hòa Phát Group leaders receive major pay hike during steel market crisis
Although the global steel industry is experiencing a crisis, Hòa Phát recorded a sharp increase in executive remuneration in the first half of 2024, with costs rising 3.4 times compared to the same period last year, reaching VND 112 billion.
Ho Chi Minh City: Economic recovery, yet the number of businesses exiting the market remains high
In the first eight months of the year, the number of businesses entering the market increased by 8.8%, but the number of businesses withdrawing also rose by 7.4%.
Businesses are the main actors and the greatest drivers of innovative startups
Dr. Đàm Quang Thắng – Chairman of the National Innovation Advisory Council has provided deep insights into the role of businesses within the innovative startup ecosystem.
General Secretary and President Tô Lâm: "Although it is a small and medium-sized business community, it is very large..."
On the afternoon of August 22, General Secretary and President Tô Lâm received a delegation of the Vietnam Association of Small and Medium Enterprises. This important and meaningful event was organized by the Business and Integration Magazine.
BIDV financed the construction of Cap Saint Jacques Complex in Vũng Tàu City
The signing ceremony for the credit contract to finance the project was organized by BIDV and the Development Investment Construction Joint Stock Corporation (DIC) — the project's investor — in Ho Chi Minh City on August 19, 2024.
The Vietnam Association of Small and Medium Enterprises honors an audience with the General Secretary and President Tô Lâm
On the afternoon of August 22, the VINASME will have the honor of meeting with the General Secretary and President Tô Lâm to report on the results of their activities. This significant event is organized by the Business and Integration Magazine.
Dr. Tran Xuan Luong: Real estate businesses lacking resources will be eliminated from the game
Dr. Tran Xuan Luong believes that real estate businesses that lack resources and strategy will certainly struggle to survive in the current competitive environment.
Tight control on foreign borrowing, businesses face more difficulties
Since 2022, borrowing foreign capital without government guarantees has become more difficult, and according to feedback from many businesses, part of the reason is the tight control policies on foreign borrowing from the State Bank of Vietnam.
Untying the knot of accessing investment capital for Vietnamese startups
The lifecycle of a startup is often shaped by funding rounds. Each funding round not only provides the necessary resources for the next stage of development but also serves as a milestone to assess the success and potential of the business.
Financial revenue - a bright spot for real estate enterprises
Financial revenue in the second quarter of 2024 has been an important bright spot, helping many real estate businesses maintain positive profits despite challenges from their core business activities, contributing to their financial stability.