Steel industry to see tougher competition with newcomers


Five new steel mills with a combined capacity of 1.5 million tons per year will start operations this year, making supply further exceed demand and leading to a fiercer competition in the local steel market. The steel mills of Thai Trung Steel Co. in Thai Nguyen, An Hung Tuong Steel Co. in Binh Duong, Middle Region Steel Co., Pacific Steel Co. and Dana-Italy Steel Co. in Danang are scheduled to begin production this year. With the additional capacity of these new plants, the total steel capacity of the country will rise to 11 million tons a year. The annual steel consumption in Vietnam is now some five million tons, less than half of the production capacity of domestic steel mills, said Nguyen Tien Nghi, vice chairman of the Vietnam Steel Association (VSA). While Vietnam's steel exports are facing stronger trade defense in foreign countries, the fact that more steel plants will be put into operation this year will make the competition among local steelmakers more … [Read more...]

Steel association wants fewer plants as supply surplus hurts industry


Current plans produce 11 million tons of steel rods but can only sell five million. Photo: TBKTSG/An Nam The Vietnam Steel Association has urged authorities not to go ahead with 27 planned steel plants since local output is already more than twice the demand. The association has proposed related authorities to revoke the licenses of 27 projects, some of which have not been started while others have proved impractical or are using outdated technology. Do Duy Thai, vice chairman of the association, told Thoi bao Kinh te Saigon Saturday that the output of steel rods has risen to as high as 11 million metric tons while the consumption has been around five million tons and is expected to rise to nearly six million tons this year. The quantity of steel billets and steel roofs is also 1.5 to two times the demand. The supply-demand gap is "unreasonably large," he said "We want the government to eliminate unsuitable projects." He said the supply surplus should be contained at 30 percent … [Read more...]

China’s dumping leaves Vietnam steel plants fighting for survival


VietNamNet Bridge – Steel making in Vietnam is in danger of coming to a full stop and the root cause of its demise lies in the fact China is increasingly dumping vast stockpiles of steel in markets around the globe say leading market analysts. To make matters worse, these same analysts and others in the steel industry are sounding the alarm over the increase in the number of anti-dumping investigations initiated against Vietnamese manufacturers. Of particular note, Thailand has initiated three investigations in September on steel sheets and related products. However, this is just the latest in a long string of investigations that other nations have instituted. Deputy General Director Ho Quang Thiep of Southern Steel Sheet Company (SSSC), said companies in the industry are experiencing the negative effects of China infiltrating international markets with low cost steel and these investigations. "Demand is low and inventory levels excessively high," Thiep said. Inventories … [Read more...]

Thailand launches AD investigation on Vietnamese stainless steel


(VOV) - The Thai Ministry of Commerce has initiated an anti-dumping investigation into stainless steel imported from Vietnam, the Republic of Korea, China and Taiwan. The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade announced on September 23 that plaintiffs are Thai companies – German Products and Puerto The Millennium. This is the third Thai anti-dumping lawsuit against Vietnamese products over the past month after its lawsuits over cold sheets and galvanized sheets. The same day, some domestic steel producers lowered their prices to around VND400,000-500,000 per metric ton due to a steep decrease in input materials like waste steel and steel ingots. Construction steel of Vina Kyoei Company is priced at VND12.4 million per ton and Pomina Company at VND12.3 million, down VND 700,000-800,000 per ton from the level price of April. The Vietnam Steel Association has predicted that the price of waste steel and steel ingots will continue to … [Read more...]

Cheap imported steel worries domestic producers

Cheap imported steel, primarily from China, has been putting growing pressure on domestic producers, according to a recent report from the Vietnam Steel Association (VSA). VSA Vice Chairman Nguyen Van Sua said the amount of imported steel in July exceeded 1.72 million tonnes, a 4.8% increase from the previous month and 62.1% rise year-on-year, with a value of US$792 million, up 10.5% from the same period last year. In the first seven months of 2015, Vietnam imported 8.43 million tonnes of steel worth US$4.47 billion, up 38.6% in volume and 9.3% in value year-on-year. Of the figure, steel from China amounted to more than 5 million tonnes, or nearly 60%, up 76% from a year earlier. Meanwhile, Vietnam exported just 1.42 million tonnes worth more than US$1 billion, down 5.2% in volume and 11.4% in value. According to Wong Chao-Tung, President and Chief Executive Officer of the China Steel Sumikin Joint Stock Company, the United States’ anti-dumping investigation into … [Read more...]

Discover World Class Event for Electronics Manufacturing Advancement at NEPCON Vietnam 2015


th edition of Vietnam’s Only Exhibition on SMT, Testing Technologies, Equipment and Supporting Industries for Electronics Manufacturing, is taking place during September 17-19 at the International Center for Exhibition (I.C.E. Hanoi), Culture Palace, in Hanoi, Vietnam. Mr. Luu Hoang Long, Chairman of Vietnam Electronic Industries Association (VEIA) and and Mr. Duangdej Yuaikwarmdee, Deputy Managing Director and General Manager Vietnam of Reed Tradex Co., Ltd. together held the opening ceremony. Mr. Duangdej Yuaikwarmdee, Deputy Managing Director and General Manager Vietnam of Reed Tradex Co., Ltd. Revealed: "Through many years, Vietnam has exhibited an impressive potential to become the hub of ASEAN’s electronics manufacturing, which has resulted 78 percent expansion per year in exports for the past four years to reach US$35 billion in 2014. By the end of last year, electronics shipments had successfully accounted for 23 percent of all Vietnam’s exports, up from … [Read more...]

Businesses remain in dark about AEC formation

(VOV) - With less than four months before the ASEAN Economic Community (AEC) comes into force, most all of the nation’s small businesses still lack an in-depth understanding of the importance of the single regional market. A recent survey by the Vietnam Chamber of Commerce and Industry (VCCI) finds that two-thirds of small businesses remain in the dark, with virtually no knowledge of the AEC. Meanwhile only one in three has even a rudimentary grasp of the opportunities and challenges that regional trade liberalization will have on their companies’ operations. As a result, they could lose out on many opportunities AEC market integration presents, while small family businesses and farmers potentially could be hit hardest by the stiff competition it brings. Associate Prof Dr Nguyen Hong Son from the National Economics University of Vietnam says the same lack of understanding extends to other Free Trade Agreements (FTAs) for which Vietnam is a party. Inadequate … [Read more...]

Building material market concerns about competition pressure

Building material market gets warmer. (Photo: SGGP)

Although domestic market has gradually warmed up, concerns still hover over building material industry due to pressure caused by cutthroat competition from foreign companies amid economic integration. According to building material shops in Ho Chi Minh City, purchasing power has improved in the past few months. Tran Thi Thanh, a building material shop owner in Binh Chanh District, said that the number of customers visited her shop to buy bricks, steel, cement, and sand in the past few months increased by two times. Monthly sales of her shop was at VND100-120 million and it was VND30-40 million earlier. Many steel companies, including Hoa Phat Group, said that in the past few months, their companies’ sales rose by 50 percent. Among building materials, steel and cement saw consumption reaching or even exceeding forecast. For instance, cement consumption touched 40 million tons in the first seven months of this year, of which, domestic consumption accounted for two third. … [Read more...]

Future seems ‘grim’ for Vietnam’s steel industry

(VOV) - Vietnam and the Eurasian Economic Union (EEU) signed a free trade agreement (FTA) on May 29, 2015 – the first such trade deal struck by the Moscow led body with a third country as it seeks to bolster its presence in Asian markets. The EEU, which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, was launched in January 2010 to promote trade and economic integration. It has a combined population of 181 million and gross domestic product of around US$2 trillion. The trade deal covers more than 90% of all commercial goods traded between the parties and it is anticipated to pose particularly tough challenges for Vietnam businesses in the steel manufacturing and fabrication industries. Pursuant to the terms of the deal, once fully implemented, businesses within these two industries will be permitted to compete in the Vietnam-EEU free trade zone without the imposition of tariffs and other non-tariff barriers. "The trade deal will undoubtedly bring major … [Read more...]

Chinese steel may flood Vietnam market

After the strong depreciation of the Chinese yuan, steel industry insiders have warned local steel producers that Chinese steel products could flood the Vietnamese market, causing difficulties for them. Vice-Chairman of the Vietnam Steel Association Nguyen Van Sua said although in recent years, the local steel industry has developed very fast, local importers still had to import a large volume of steel products and semi-finished products every year. Chinese steel products account for 60 per cent of the total steel imports. Sua said China's yuan devaluation would have both negative and positive effects. Local importers will be able to import steel at reasonably competitive prices. On the other hand, the yuan devaluation will lead to a flood of imported steel products from China such as construction steel, cold-rolled steel and corrugated steel, thus affecting the local market. Sua said the most effective measure to counter Chinese steel imports was to make Vietnamese steel firms … [Read more...]

Seminar discusses ways to optimise Vietnam-EAEU FTA

A seminar was held in Ho Chi Minh City on August 19 to discuss measures that domestic enterprises can apply to minimise impacts and optimise benefits from the free trade agreement between Vietnam and the Eurasian Economic Union (EAEU) that was signed in late May this year. According to Duong Hoang Minh, Deputy Head of the European Market Department under the Ministry of Industry and Trade, the FTA is expected to become operational in early 2016. Minh noted that the EAEU has committed to tax cuts to zero percent on nearly 90 percent of tariff lines, equivalent to 90 percent of the import value from Vietnam of the EAEU countries, which presents a great opportunity for Vietnamese products, especially seafood, apparel, footwear and farm produce. For example, he said, over 71 percent of seafood product types will enjoy tariff exemption immediately after the agreement becomes effective. However, Minh also warned that enterprises should carefully study the exemption and reduction of … [Read more...]

Businesses Need Active Involvement in Policy Making

The Vietnam Chamber of Commerce and Industry (VCCI) recently hosted a workshop on "Policy lobby in new context: Opportunities and challenges for businesses" in Hanoi. Mr Dau Anh Tuan, Director of VCCI Legal Department, said that over 70 percent of more than 1,000 legal documents issued each year relate to business, but up to 78 percent of enterprises have never been consulted on draft laws. Meanwhile, 66 percent of enterprises attribute policy risk as one of the three biggest risks that they face. Unstable policies and laws pose a major risk to businesses and they are well aware of the importance of their roles in policymaking. In reality, policy consultation is now focusing on big companies. Small and micro businesses are almost unaware of the existence of new policies. Even, some only know the existence of a policy when they are fined for violating such policy. Besides, the lack of opinion exchanges and consultations in the course of drafting is attributed to the enactment of many … [Read more...]

Low input prices encourage local companies

Low input prices encourage local companies ( The sharp decrease in prices of several kinds of raw materials has encouraged domestic companies to expand production activities, according to a source from Thoi Bao Kinh Te Sai Gon (Saigon Economics Times). Since late last year, the price of iron, copper and plastics in the world market has declined significantly. The price decline has helped domestic enterprises to reap high profits, particularly those involved in the plastics industry, such as Tien Phong Plastics Joint Stock Company (NTP), Tan Tien Plastic Package Company, Binh Minh Plastics Joint Stock Company (BMP), and Rang Dong Plastics Joint Stock Company. BMP Vice Chairman and General Director Nguyen Hoang Ngan said the price of plastic raw materials had decreased since late last year, with a sharp fall in the early months of the year. The prices of plastic raw materials were slashed by between 16 and 17 percent compared with last year's average … [Read more...]

Powerful Domain of Innovations for Mold Making and Plastics Manufacturing


In general, AEC 2015 is likely to influence the automotive industry in distinct patterns: on one side, there is production in developed markets with an integrated supply chain while on the other side; there is production in developing markets that is mainly based on assembly of imported completely knocked-down (CKD) kits. Whether the automotive industry will grow in any pattern, it will take shape by the alignment and development together with the mold industry. Although Vietnam is labeled as the dawn of motorization, but there was a significant increase of 6.96 percent inVietnam's Gross Domestic Product in 2014, with the rise of auto-parts export playing a key role in driving the country’s economy. Increasing political and exchange-rate stability, along with promising gross domestic product growth have catapulted Vietnam to the top of many investors’ agendas, as Mr. Duangdej Yuaikwarmdee, Deputy Managing Director and General Manager Vietnam of Reed Tradex Co., Ltd. … [Read more...]

Vietnamese steel companies see improving production

The Vietnam Steel Association said that production and sales of its members have significantly improved thanks to recovering real estate market. Particularly, in the first half of this year, steel production reached 6.45 million tons, up 18.6 percent compared to the same period last year; the sales of steel hit 5.46 million tons, up 22.2 percent over the same period last year; and steel exports touched 846,000 tons, down 4.7 percent. Despite increase in production, domestic steel industry still faces difficulties due to excessive steel supply. The prices of domestic steel products have continuously dropped in accordance with losing trend of input materials. Most steel products have seen a decline of 5-10 percent in price in comparison to the beginning of this year. According to VSA, economic growth of China - the world’s largest market that controls global steel industry’s movements – has become stagnant, causing steel consumption to reduce while steel production … [Read more...]

Steel consumption sees sharp growth

Photo: CPV

(CPV) - Sales of steel products for construction reached over 3 million tonnes in the first half of the year, a year-on-year rise of 24.4%, reported the Vietnam Steel Association. Of this, the Vietnam Steel Corporation contributed the largest sales at over 696,000 tonnes, accounting for 22.7% of market share, followed by Hoa Phat Steel JSC at over 675,000 tonnes (22.1%), Pomina Steel JST at over 407,000 tonnes (13.3%) and Vinakyoei Ltd., Co at over 246,000 tonnes (8.06%). During the period, steel pipes sales saw impressive growth with over 664,000 tonnes consumed, a 34.7% rise over a year earlier. This figure included over 80,000 tonnes for export. Hoa Phat Steel JSC saw the highest sales growth at 145,300 tonnes, accounting for 21.8% of market share. It was followed by Hoa Sen steel pipes at over 130,000 tonnes, making up 19.63%. According to the Vietnam Steel Association, the growth of the steel sector partially helped domestic producers reduce pressure on inventory and … [Read more...]

Vietnam’s domestic steel consumption up in H1

The domestic steel industry saw strong growth in consumption in the home market in the first half of this year, according to the Vietnam Steel Association (VSA). The association reported the purchase of building steel products gained a year-on-year surge of 24.4 percent to reach three million tones in the first half of this year. Vietnam Steel Corporation (VNSteel) had the largest consumption volume at 696,059 tonnes, accounting for 22.78 percent of the total domestic consumption in the first six months. The second largest producer was Hoa Phat Steel Company with a volume of 675,710 tonnes, Pomina with 407,426 tonnes and Vinakyoei with 246,262 tonnes. Meanwhile, the consumption of steel pipes also saw a growth of 34.7 percent in the first six months to 664,583 tonnes against the same period last year, the association said. The Hoa Phat Steel Company had the largest consumption of steel pipes at 145,300 tonnes, holding 21.85 percent of the total steel tube consumption, … [Read more...]

Taiwan investor fails to fund major steel mill

Quoc Hung A source from the Dung Quat Economic Zone Authority (DEZA) told the Daily on the phone last Friday that Guang Lian Steel Vietnam Co. Ltd. had told the provincial authority about its failure to find capital for the project. However, the company did not say where it would abandon the project. The provincial government and DEZA earlier told Guang Lian Steel to show credit contracts or prove financial capability for implementing the project by the end of June; otherwise, the project would be nullified. According to the source, the investor will have to stop work on the project and DEZA will then seek comments from relevant ministries and agencies to complete necessary procedures for revoking the investment certificate of the project. The investor has reportedly spent around US$42 million building some components like dorms for workers, ground leveling and fence construction since work started on the project in 2007. Experts questioned the future of the slow-moving steel … [Read more...]

Vietnam-EAEU trade pact opens opportunities and challenges

The Vietnam-Eurasian Economic Union Free Trade Agreement signed on May 29 is forecast to offer both ample opportunities and tough challenges to Vietnamese businesses. According to the agreement, Vietnam will have great opportunities to sell strong products to the Eurasian Economic Union (EAEU), encompassing Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. Aquatic products, garments and leather will be the key beneficiaries of the deal as they enjoy a zero percent tariff. Dang Phuong Dung, Vice President and Secretary General of the Vietnam Textile Association (VITAS) felt upbeat about Vietnamese textile and garments’ market share in the Union, predicting that two-way garment trade will grow by 50 percent the first year of the agreement’s implementation and 20 percent over the next five years. Vietnam will be the Union’s fourth provider of apparel from the current eighth place, she said. Thanks to the signing of free trade deals between Vietnam and the … [Read more...]

Vietnam complains to WTO about Indonesia’s safeguard tariff on steel

Bach Van Mung, director of the Vietnam Competition Authority under the Ministry of Industry and Trade, told

Vietnam last week requested that the World Trade Organization (WTO) consider Indonesia’s imposition of a safeguard tariff on its steel sheets. Tuoi Tre (Youth) newspaper last Tuesday that Vietnam had lodged a formal complaint to the WTO, and the global trade organization had also released a statement about it. According to Mung, Vietnam decided to take the case to the WTO following the failure in the bilateral consultation process in which Vietnam found that such unsatisfactory taxation imposition of Indonesia will have a bad influence on exports of flat rolled products of iron or non-alloy steel from Vietnam. According to WTO rules, Vietnam and Indonesia will have 60 days to consult with each other to settle the case, but if it is still not resolved, the WTO will adjudicate, Mung added. Earlier, according to Tuoi Tre sources, Indonesia decided to impose the tariff on flat rolled products of iron or non-alloy steel on the basis of absolute volume of imported steel, … [Read more...]