In the first quarter of 2022, despite facing many difficulties and challenges due to the COVID-19 epidemic, however, finished steel production and consumption grew by 3.2% and 7.7% respectively over the same period last year. .

Good growth signal

On April 18, the Vietnam Steel Association (VSA) published a report on the situation of Vietnam’s steel market in March and the first quarter of 2022.

Vietnamese steel enterprises have made efforts to develop the brand name of Vietnamese steel products for export to regional and international markets in order to promote the efficiency of production and business activities.
Vietnamese steel enterprises have made efforts to develop the brand name of Vietnamese steel products for export to regional and international markets in order to promote the efficiency of production and business activities.
Accordingly, in March 2022, finished steel production reached 3,338 million tons, up 29.16% compared to February 2022 and up 6.8% over the same period in 2021. Steel consumption of all kinds reached 3,123 million tons, up 21.3% over the previous month and 2.4% over the same period. “In the first quarter of 2022 compared to the same period in 2021, finished steel production reached 8,456 million tons, up 3.2%; finished steel consumption reached 8,137 million tons, up 11.9%”- the VSA report specifically stated.

Notably, in terms of exports, in March 2022, Vietnam’s finished steel exports reached 956 thousand tons, up 75.41% over the previous month, but down 22.8% over the same period in 2021. Export value reached US$908.63 million, up 71.87% compared to February 2022 and up 1.05% over the same period in 2021.

In the first quarter of 2022, Vietnam exported about 2,275 million tons of steel, down 22.15% over the same period last year. Export value reached 2.3 billion USD, up 12.53% over the same period in 2021.

Vietnam’s main export markets in the first quarter of 2022 focus on ASEAN (40.57%), EU (19.32%), US (8.34%) and South Korea (8.34%). 6.97%) and Hong Kong (3.91%).

According to some experts’ forecasts, in 2022, domestic steel consumption will grow well based on increased disbursement of public investment, focus on infrastructure, and recovery of civil construction activities. when the epidemic is under control.

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 – East Expressway. In the South East, Long Thanh airport, large logistics ports…, leading to an increase in iron and steel consumption demand.

Improve capacity, adapt to develop

Currently, Vietnam has joined 15 FTAs, which both creates opportunities to increase exports as well as requires manufacturing industries to adapt to develop… Besides, steel manufacturing enterprises also have more opportunities to promote production, export to new markets

Mr. Nghiem Xuan Da – Chairman of VSA said that in order to create a driving force for the steel industry to develop, Resolution 01/NQ-CP was issued on January 9, 2022 with solutions for development and socio-economic recovery. The association will promote production and business, boost exports and speed up the disbursement of public investment capital.

The mobilization of all resources for infrastructure development will be a support for the steel industry to develop stronger, helping enterprises to stabilize their production and business activities in the direction of flexibly adapting to the Covid-19 pandemic.

Nghiem Xuan Da also said that for Decree 101/2021/ND-CP amending and supplementing a number of articles of Decree 122/2016/ND-CP and Decree No. 57/2020/ND-CP in order to contribute The part of macroeconomic stability and inflation control has been issued, the steel industry has always complied and will be effective in the coming time.

“Steel businesses identify this as both a challenge and an opportunity that requires steel producers to constantly innovate technology, reduce costs and improve competitiveness in the current post-Covid-19 context. now”- VSA President emphasized.

However, VSA also proposed to the Government and related ministries and branches to assume the prime responsibility for developing and soon promulgating national standards for galvanized and color coated corrugated iron products. At the same time, guide the participation process of parties such as state agencies, associations and enterprises to have national standards suitable to the current global integration trend. Vietnamese standards also need to be adapted to the standards of other countries so that Vietnamese products can be promoted and sold to foreign markets.

In addition, to ensure a balance between supply and demand in 2022, VSA recommends that the State have policies to encourage investment, promote and protect domestic steel production with consistency and long-term stability. In addition, state agencies support enterprises in the application of trade remedies to protect domestic production, as well as respond to trade remedy lawsuits by other countries against products. Vietnam’s steel exports to minimize damage to businesses.

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