Discover the soaring potential of Vietnam's steel market!

In the ever - evolving global economic landscape, the Southeast Asian market is attracting global attention with its vibrant development momentum, and Vietnam's steel market stands out as a "bright star." Recently, a series of data and policy developments have revealed that Vietnam's steel demand is undergoing an unprecedented expansion, opening up a highly promising new frontier for export - oriented enterprises.

Demand "Surges": Strong Impetus Revealed by Data

The data released by the Vietnam Steel Association (VSA) is like a "blockbuster." It is estimated that Vietnam's total steel demand from 2023 to 2025 will reach 22 - 23 million tons. Behind these figures lies the powerful support of the coordinated development of multiple sectors in Vietnam's economy.

The construction industry is undoubtedly the "behemoth" in steel consumption, accounting for a whopping 89%. From cozy residential houses to magnificent public buildings and well - connected transportation infrastructure, steel is an indispensable element everywhere. In 2023, the demand for steel in the construction industry exceeded 19 million tons. Given the current development trend, it is almost certain that this figure will surpass 20 million tons by 2025. Just imagine, as skyscrapers rise one after another and roads and bridges crisscross the land, there is an enormous demand for steel hidden behind these scenes.

The manufacturing industry is also an important engine driving the growth of steel demand. As a major automotive manufacturing and home appliance production base in Southeast Asia, Vietnam's automotive, home appliance, and machinery industries account for about 10% of steel demand. In 2023, Vietnam produced 750,000 vehicles, and this number continues to rise. With the vigorous development of the automotive industry, the demand for high - end steel products such as cold - rolled sheets and galvanized sheets has also shown rapid growth, with an annual growth rate of 12%. The home appliance industry is no exception. The production of air conditioners and refrigerators has increased by 15% annually, further driving up steel demand.

Although the energy and infrastructure sectors account for a relatively small proportion, about 2%, they have great development potential. With the Vietnamese government's substantial investment in the oil and gas sectors, the demand for pipes and structural steel will gradually increase.

Infrastructure "Tailwind": A 140 - Billion - Dollar Investment Unleashes a Steel Feast

The Vietnamese government's ambitious plan to invest 140 billion US dollars in infrastructure construction over the next 5 - 10 years is undoubtedly a "shot in the arm" for the steel market. This massive investment plan covers multiple areas, including the expansion of transportation networks, the development of industrial parks, and urban construction projects, which will directly drive the rapid growth in the consumption of construction steel, pipes, and structural steel.

In terms of transportation network expansion, Vietnam plans to build 5 high - speed railways and expand 10 international airports by 2025, and add more than 3,000 kilometers of expressways. The implementation of these projects will require a large amount of construction steel, and it is estimated that the demand for construction steel will increase by 8% annually. Just picture it: as brand - new high - speed rail lines crisscross Vietnam, connecting various cities, not only will people's travel become more convenient, but it will also bring huge business opportunities to the steel industry.

The development of industrial parks is also a key area. By 2025, Vietnam will add 20 new industrial parks, focusing on the development of electronics and automotive manufacturing industries. This will drive the growth in demand for structural steel, with an expected increase of 15%. The construction of industrial parks will provide a stable market demand for steel enterprises and promote the sustainable development of the steel industry.

Urban construction projects are also not to be overlooked. With the acceleration of Vietnam's urbanization process, it is estimated that the urbanization rate will reach 40% by 2025, with an additional 5 million urban residents. The demand for residential building steel will experience explosive growth and is expected to exceed 10 million tons. Urban development cannot be separated from infrastructure construction, and steel is an important raw material for infrastructure construction. Therefore, the urbanization process will bring long - term and stable demand to the steel market.

Manufacturing Upgrade: The "Hidden Concern" of High Dependence on Imports of High - End Steel Products and Opportunities

While the upgrading of Vietnam's manufacturing industry has brought about growth in steel demand, it has also exposed a problem: a high degree of dependence on imports of high - end steel products. As a major automotive manufacturing and home appliance production base in Southeast Asia, Vietnam has a strong demand for high - end steel products such as cold - rolled sheets and galvanized sheets, but its domestic production capacity cannot meet market demand.

In 2023, Vietnam imported 13.33 million tons of steel, of which cold - rolled sheets and galvanized sheets accounted for 45%, mainly from China (62%), Japan (14%), and South Korea (8%). Vietnam can only produce some low - end long products, and the self - sufficiency rate of high - end sheet products is less than 40%. It is estimated that there will be a shortage of 5 million tons by 2025. This situation provides a vast market space for export - oriented enterprises.

For Chinese steel export - oriented enterprises, the Vietnamese market is undoubtedly a huge "cake." With advanced production technology and a wide range of product categories, Chinese steel enterprises can provide high - quality high - end steel products to the Vietnamese market. Moreover, China and Vietnam are geographically close, and transportation is convenient, resulting in relatively low transportation costs. This has also given Chinese steel enterprises a competitive advantage in the Vietnamese market.

Challenges and Responses: Seizing Opportunities amid Change

Although the Vietnamese steel market has a bright future, it also faces some challenges. Companies such as Hoa Phat Group and Formosa Ha Tinh Steel plan to add 6.5 million tons of crude steel production capacity by 2025, bringing the total production capacity to over 36 million tons. However, the proportion of high - end production capacity is still less than 30%. This means that while Vietnam's steel industry is expanding its production capacity, the problem of an imbalanced production capacity structure remains prominent.

In addition, changes in trade policies have also brought some uncertainties to steel exports. In April 2025, Vietnam imposed a 37.13% anti - dumping duty on alloy - coated steel sheets from China. This move may drive up the cost of Chinese steel in the Vietnamese market. However, Chinese steel still accounts for 60% of the Vietnamese market share due to its cost - effectiveness. Chinese steel enterprises can reduce production costs and improve product competitiveness by optimizing product structure, improving product quality, and strengthening technological innovation to cope with changes in trade policies.

Environmental pressure is also a major challenge for Vietnam's steel industry. The Vietnamese government requires steel mills to reduce energy consumption by 15% by 2025, and some enterprises are facing pressure for technological transformation. For steel enterprises, this is both a challenge and an opportunity. They can introduce advanced environmental protection technologies and equipment to achieve energy conservation and emission reduction, improve production efficiency, and also enhance their corporate image and market competitiveness.

Future Outlook: Working Together to Create a New Glory in the Steel Industry

The continuous expansion of Vietnam's steel demand has brought unprecedented opportunities for export - oriented enterprises. With the continuous increase in infrastructure investment, the upgrading of the manufacturing industry, and the acceleration of the urbanization process, the Vietnamese steel market will maintain strong growth momentum in the coming period. It is estimated that the average annual growth rate of steel demand in Vietnam from 2025 to 2030 will reach 6%, making it the most promising market in ASEAN.

For export - oriented enterprises, to seize this opportunity, they need to have an in - depth understanding of the demand characteristics and policy environment of the Vietnamese market, strengthen cooperation and exchanges with Vietnamese enterprises, and provide products and services that meet market demand. At the same time, they should focus on technological innovation and brand building, increase the added value and competitiveness of products, and secure a place in the Vietnamese steel market.

In the context of global economic integration, the development of Vietnam's steel market is not only related to Vietnam's own economic construction but also provides new development opportunities for the global steel industry and export - oriented enterprises. Let's work together to embrace the golden age of Vietnam's steel market and create a new glory in the steel industry!

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DAWN | Pig Iron & Castings Procurement Advisor
18 years in the foundry trenches give me an edge: I know how pig iron’s chemistry impacts casting quality and can troubleshoot defects like cracks and porosity. With a 1M MT/year pig iron and 60k MT/year casting output from our in-house factory, plus 200+ verified suppliers on our platform, we offer fast price comparisons. Expect a 24-hour inquiry response—my goal? Not just closing deals, but being your go-to partner in the foundry world.

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