Dublin, Aug. 10, 2022 (GLOBE NEWSWIRE) -- The "Research Report on Vietnam's Steel Industry 2022-2031" report has been added to ResearchAndMarkets.com's offering.
In 2021, the growth rate of Vietnam's GDP is 2.6%. Vietnam's economy has been increasing rapidly for many years, but wages of manufacturing are still at a low level, which were less than 50% in China and far below that of the developed countries in 2021.
According to the analysis, as Vietnam's economy develops and the living standards of residents rise, the demand for steel in the industries such as construction, automobiles and home appliances is also going up. The rapid development of steel demand has attracted many steel enterprises to build new steel capacity in Vietnam.
As the COVID-19 epidemic in Vietnam has been effectively controlled, the steel industry in Vietnam will not be greatly affected in 2020. Overall, Vietnam's steel industry is still growing, and homemade steel cannot meet the needs of the domestic market.
According to the analysis, in 2021, the production volume of crude steel in Vietnam reached 26.15 million tons, representing a CAGR of 32.7% from 2013 to 2021.
Based on the analyst's analysis, seeing the huge potential of the steel market in Vietnam and even Southeast Asia, many enterprises have invested in Vietnam's steel industry in recent years. The largest investment case is Formosa Ha Tinh Steel Corporation (FHS), which is a joint venture by Formosa Plastic Group, China Steel Corporation and Japan's JFE Holdings, with a first-phase investment of more than USD 10 billion.
Due to the rapid increase in production capacity of the steel industry in recent years, the supply of some types of steel in Vietnam has exceeded the demand, including concrete iron or steel for construction, cold-rolled steel coil products, etc. In order to reduce large quantities of imports such as hot-rolled steel coils and electromagnetic steel sheets, the Vietnam government is actively attracting foreign investors to establish positions in the country.
At present, the Vietnamese government has not formulated nationwide policies for foreign investment in the steel industry. However, steel companies have been set up in many industrial parks in Vietnam, which are granted with preferential policies in taxation and other aspects.
In addition, as Vietnam's manufacturing and construction industries develop rapidly, the demand for steel will continue to increase. It is estimated that, during 2022-2031, Vietnam's roads, airports and other infrastructure, housing construction, automobile, home appliances and other industries will all maintain a high growth rate.
On the whole, most domestic steel manufacturers are extremely low in production capacity (no more than 1 million tons a year), with outdated equipment. Foreign-funded enterprises have seen great market prospects in investing in the steel industry of Vietnam, especially to establish one-stop businesses from the production of crude steel to the processing of various kinds of steel.
For one thing, these steel enterprises can market in Vietnam. For another, they can export products to the Southeast Asian market with a total population of nearly 700 million, and even to the Asia-Pacific market with a population of more than 2 billion.
The analyst reports that the Vietnam steel market will become one of the fastest growing markets in the world from 2022 to 2031. Meanwhile, the CAGR of the production volume of crude steel is projected to exceed 15%. By 2024, Vietnam will become a net exporter of steel.
Key Topics Covered:
1 Development Environment of Vietnam Steel Industry
2 Market Status of Vietnam Steel Industry, 2015-2021
3 Analysis on Import and Export of Steel in Vietnam, 2015-2021
4 Major Steel Manufacturers in Vietnam, 2019-2021
5 Prospect of Vietnam Steel Market, 2022-2031
Companies Mentioned
- HOA PHAT Steel
- HOA SEN Group
- VIET NAM Steel Corporation
- SMC Steel Company Limited
- VSC - Posco Steel Corporation (VPS)
- Formosa Ha Tinh Steel Corporation (FHS)
For more information about this report visit https://www.researchandmarkets.com/r/lp6ws9
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