There must be strong policies in place to encourage the growth of the steel sector

DNHN - The Ministry of Industry and Trade has recently submitted to the Prime Minister Report No. 2152/BCT-CN on a proposal to construct a "Strategy to expand Vietnam's steel industry to 2030, with a vision to 2050." Because of this, the Ministry of Sector and Trade thinks that certain policies are needed to help the steel industry grow.

According to the Ministry of Industry and Trade, billet capacity would reach 27 million tons per year by 2021, with a hot-rolled coil (HRC) capacity of 7-8 million tons per year; in addition to several new facilities with huge capacities, such as Hoa Phat Dung Quat iron and Steel Complex, Hung Nghiep Formosa Iron and Steel Complex, and Nghi Son Steel. The surviving steel billet manufacturers mostly have limited capacity and obsolete machinery.

Steel manufacturing capacity is constrained. Vietnam has yet to create specific steel, particularly alloy steel.

The Ministry of Industry and Trade considers the competitiveness of Vietnam's steel industry to be rather poor given that the majority of steel manufacturing inputs must be imported. There are also still businesses with limited capacity, old equipment, high energy use, and risks to the environment.

According to the Ministry of Industry and Trade, Vietnam will import a variety of resources for steel manufacturing in 2022, including around 18 million tons of iron ore for blast furnaces and 6 to 6.5 million tons of scrap steel for other sectors. electric furnace, about 6.5 million tons of coking coal, and approximately 10,000 tons of graphite electrodes...

The price will be affected by the expectation that the prices of iron ore, scrap steel, raw material ores, and coking coal will continue to rise. directly to steel producing companies and the local steel market.

According to the Ministry of Industry and Trade, industrialization is primarily characterized by the quick and sustained growth of essential industries, particularly the processing and manufacturing sectors.

The steel sector offers the most essential input materials for manufacturing and manufacturing industries, particularly mechanical engineering, shipbuilding, automotive and motorcycle manufacturing, home appliance manufacturing, and international industry. room, the mining industry, the electrical industry...

The report, signed by the Minister of Industry and Trade Nguyen Hong Dien, affirms that the steel industry plays a crucial role in the country's progress towards industrialization and modernization. But there isn't a clear plan yet to encourage and guide the growth of the steel industry.

After the steel industry master plan was abolished by the provisions of the Planning Law in 2017 and the price control was also removed from the list of controlled goods by the provisions of the Price Law in 2012, the state was unable to ensure the state management of the steel industry, failing to manage production capacity, balance the supply and demand of domestic steel industry products, and supply raw materials.

For the steel sector to flourish sustainably and stably, the state must adopt sufficient policies to foster its development, thus laying the groundwork for industrialisation in a modern and sustainable direction.

To accelerate the country's industrialization and modernization process, the Ministry of Industry and Trade outlined more specific development objectives, such as Vietnam's need for policy directives to vigorously develop the metallurgical and materials industries, particularly the metallurgical industry. Steel production and processing

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