The steel industry benefits from government investment promotion

DNHN - At the regular press conference of the Ministry of Industry and Trade, Deputy Minister Do Thang Hai said that accelerating the disbursement of public investment capital will also have a positive impact on the recovery and growth in some industries such as steel, materials. construction, mechanics.

In Directive 01 just issued, the Prime Minister assigned the Ministry of Transport and relevant agencies and localities to further accelerate the investment preparation and investment decision on road construction projects. East North-South Expressway in the period of 2021-2025.

Concentrating on expediting the building of many highway sections along the North-South East route between 2017 and 2020, as well as phase 1 of the Long Thanh International Airport Project.

According to BSC Securities' recently released steel stock outlook study, domestic steel consumption would grow strongly in 2022 as a result of increased public investment, particularly in infrastructure. When the outbreak is brought under control, civil construction activity resumes.

Specifically, the National Assembly has approved an economic recovery support package worth VND 350,000 billion, of which VND 113,850 billion is allocated for infrastructure development, focusing on key projects such as the North –North-Eastway. In the South East, Long Thanh airport, large logistics ports..., led to an increase in iron and steel consumption demand.

Construction activity in 2021 was delayed for the first 9 months of the year to support disease control. In 2022, the supply of apartments will double, and the supply of townhouses will increase by 20%-30% compared to 2021 (according to CBRE Vietnam's forecast) are the factors promoting domestic steel consumption.

The Vietnam Steel Association (VSA) believes that Vietnam's steel market prospects would improve in 2022 if the Government provides a directive to stabilize and increase production and business activities in otopond flexibly to the COVID-19 epidemic.

Three priorities will be used to sustain growth momentum and capitalize on new growth drivers identified by the Government in 2022, including reviving and promoting production and business; increasing exports and expediting the disbursement of public investment capital; and mobilizing all available resources for infrastructure development.

VSA believes that the steel market can begin the first quarter of 2022 at a new price level if the price of steel materials continues to rise and domestic demand remains strong. 

Lam Nghi