Vietnam’s steel sector has witnessed strong development in terms of capacity, output, and products in the recent past.
Data from the Vietnam Steel Association (VSA) shows that steel billet output surged 40-fold to surpass 12 million tonnes in 2015 from just 300,000 tonnes in 2000.
Meanwhile, output of finished steel products hit more than 26 million tonnes in 2015, growing over ten-fold since 2000.
Product diversification also helps Vietnam’s steel sector make great strides forward in the region and have a more important role to play in the international arena.
The country will switch to electric arc furnaces from the current blast furnaces, according to steel expert Nguyen Van Sua.
Another point of note in domestic steel development is the scale of projects. Since 2004, world-calibre projects have been built by firms such as Hung Nghiep Formosa Ha Tinh and the Hoa Phat Group.
Deputy Director of the Hoa Phat Dung Quat Integrated Complex, Dinh Van Chung, said its hot-rolled coil (HRC) has been in constant demand.
Hoa Phat will invest in another project with a capacity of 5 million tonnes a year at Dung Quat by early 2022, which will primarily be involved in HRC production and will use modern technology, he added.
Vietnam is likely to develop special-purpose steel in the time to come.
VSA President Nghiem Xuan Da underlined that steel companies must keep a close eye on the market and enhance their competitive edge to promptly make adjustments and sustain long-term development.
The State also needs to devise suitable strategies for the sector, towards guiding companies to invest more in technology.