The domestic steel industry saw strong growth in consumption in thehome market in the first half of this year, according to the VietnamSteel Association (VSA).
The association reported the purchaseof building steel products gained a year-on-year surge of 24.4 percentto reach three million tones in the first half of this year.
VietnamSteel Corporation (VNSteel) had the largest consumption volume at696,059 tonnes, accounting for 22.78 percent of the total domesticconsumption in the first six months.
The second largest producerwas Hoa Phat Steel Company with a volume of 675,710 tonnes, Pomina with407,426 tonnes and Vinakyoei with 246,262 tonnes.
Meanwhile, theconsumption of steel pipes also saw a growth of 34.7 percent in thefirst six months to 664,583 tonnes against the same period last year,the association said.
The Hoa Phat Steel Company had the largestconsumption of steel pipes at 145,300 tonnes, holding 21.85 percent ofthe total steel tube consumption, followed by Hoa Sen (130,528 tonnes).
NguyenVan Sua, VSA Vice Chairman, said the growth in the local steel industrysupported domestic steel producers in reducing inventories andincreasing their production, according to the Cong Thuong (Industry andTrade) newspaper.
To increase consumption, in recent years,companies have promoted exports, but these countries have launchedvarious safeguards, including anti-dumping measures.
Of note, inthe first six months the VSA's member companies exported 175,543 tonnesof steel, 5 percent lower than in the same period last year.
Expertssaid free trade agreements (FTAs) would bring more opportunities andalso challenges to local steel producers because the FTAs open moreexport markets, but cause challenges to local consumption.
NguyenVan Phong, Deputy General Director of the NS BlueScope Steel Vietnam,said the local galvanised steel industry would have more chances toexport galvanised steel products due to advantages from the FTAs, thoughlocal steel exporters should be ready to face safeguards in countriesparticipating in the FTAs.
Tran Tuan Duong, General Director ofHoa Phat Group, said the FTAs offer opportunities and challenges, solocal steel producers should reduce production costs and selling prices,and improve production management during the integration process intothe world economy.
Sua said to gain efficiencies in exports, theproducers should study regulations on taxes and schedules of cuttingtaxes under the FTAs at export markets to avoid lawsuits for dumpingVietnamese steel products in export markets, the Hai Quan (Customs)newspaper reported.
Meanwhile, the producers should improve theircompetitive abilities, including quality, price and services, tomaintain their growth production and business after the FTAs come intoeffect, Sua said.
To assure continued sustainable development,local steel producers should update technology and equipment, improvecorporate management and reduce production costs to reduce sellingprices of products, he added. They should also increase knowledge aboutsafeguard measures to avoid commercial lawsuits.
Further,domestic steel industry should develop large steel producers that havefinancial and technological abilities and an annual capacity at 2-3million tonnes to compete with import products in the future, henoted.-VNA
The association reported the purchaseof building steel products gained a year-on-year surge of 24.4 percentto reach three million tones in the first half of this year.
VietnamSteel Corporation (VNSteel) had the largest consumption volume at696,059 tonnes, accounting for 22.78 percent of the total domesticconsumption in the first six months.
The second largest producerwas Hoa Phat Steel Company with a volume of 675,710 tonnes, Pomina with407,426 tonnes and Vinakyoei with 246,262 tonnes.
Meanwhile, theconsumption of steel pipes also saw a growth of 34.7 percent in thefirst six months to 664,583 tonnes against the same period last year,the association said.
The Hoa Phat Steel Company had the largestconsumption of steel pipes at 145,300 tonnes, holding 21.85 percent ofthe total steel tube consumption, followed by Hoa Sen (130,528 tonnes).
NguyenVan Sua, VSA Vice Chairman, said the growth in the local steel industrysupported domestic steel producers in reducing inventories andincreasing their production, according to the Cong Thuong (Industry andTrade) newspaper.
To increase consumption, in recent years,companies have promoted exports, but these countries have launchedvarious safeguards, including anti-dumping measures.
Of note, inthe first six months the VSA's member companies exported 175,543 tonnesof steel, 5 percent lower than in the same period last year.
Expertssaid free trade agreements (FTAs) would bring more opportunities andalso challenges to local steel producers because the FTAs open moreexport markets, but cause challenges to local consumption.
NguyenVan Phong, Deputy General Director of the NS BlueScope Steel Vietnam,said the local galvanised steel industry would have more chances toexport galvanised steel products due to advantages from the FTAs, thoughlocal steel exporters should be ready to face safeguards in countriesparticipating in the FTAs.
Tran Tuan Duong, General Director ofHoa Phat Group, said the FTAs offer opportunities and challenges, solocal steel producers should reduce production costs and selling prices,and improve production management during the integration process intothe world economy.
Sua said to gain efficiencies in exports, theproducers should study regulations on taxes and schedules of cuttingtaxes under the FTAs at export markets to avoid lawsuits for dumpingVietnamese steel products in export markets, the Hai Quan (Customs)newspaper reported.
Meanwhile, the producers should improve theircompetitive abilities, including quality, price and services, tomaintain their growth production and business after the FTAs come intoeffect, Sua said.
To assure continued sustainable development,local steel producers should update technology and equipment, improvecorporate management and reduce production costs to reduce sellingprices of products, he added. They should also increase knowledge aboutsafeguard measures to avoid commercial lawsuits.
Further,domestic steel industry should develop large steel producers that havefinancial and technological abilities and an annual capacity at 2-3million tonnes to compete with import products in the future, henoted.-VNA
