Vietnam's "steel demand" has a promising future

Recently, data released by the Vietnam Steel Association (VSA) showed that in 2022, Vietnam's finished steel production exceeded 29.3 million tons, a year-on-year decrease of nearly 12%; The sales volume of finished steel products reached 27.3 million tons, a year-on-year decrease of over 7%, with a decrease of over 19% in export volume; The difference in production and sales of finished steel products is 2 million tons.

Vietnam is the sixth largest economy among ASEAN countries. The Vietnamese economy grew rapidly from 2000 to 2020, with a compound annual GDP growth rate of 7.37%, ranking third among ASEAN countries and experiencing astonishing growth rates. Since the implementation of economic reform and opening up in 1985, the country has maintained positive economic growth and good economic stability every year.

At present, Vietnam's economic structure is in a stage of rapid transformation. In 1985, Vietnam began to implement economic reform and opening up, and gradually moved from a typical agricultural economy to a Industrial society. Since 2000, Vietnam's service industry has risen and its economic system has gradually improved. At present, agriculture accounts for about 15% of Vietnam's economic structure, industry accounts for about 34%, and service industry accounts for about 51%. According to the statistics released by the World Steel Association in 2021, Vietnam's apparent consumption of steel in 2020 will be 23.33 million tons, ranking first among ASEAN countries, and the apparent consumption of steel per capita will rank second.

The Vietnam Iron and Steel Association believes that in 2022, the domestic steel consumption market in Vietnam will decline, the price of steel production materials will fluctuate, and many steel enterprises will be in trouble, which is likely to last until the second quarter of 2023.