The steel industry is one of the core industries of Vietnam which support development of the country, especially infrastructure development. Vietnam’s steel industry saw a revival in 2014 with high demand and improved macroeconomic conditions. Rebound of the frozen real estate market, the main steel consumer in Vietnam, coupled with relaxed monetary and fiscal policies during the year caused the demand to rise.
Vietnam’s apparent steel consumption surged by 22% y/y to 14.4mn tonnes in 2014, making it the second-largest steel consuming country in ASEAN. Vietnam Steel Association (VSA) estimates domestic steel consumption to increase by 1.5-2mn tonnes in 2015, amid higher GDP growth and increases in both export turnover and total investment.
Moreover, controlled inflation and interest rate cuts will lead to higher demand from the construction and real estate sectors, while other steel consuming industries such as shipbuilding, automobile manufacturing and mechanical engineering will also see healthy growth.
Potential for long-term expansion of the Vietnamese steel industry is strong, but it still faces some difficulties in terms of the huge cheap steel importation from China and steep decline in selling prices.
- Vietnam’s steel consumption increased significantly by 22% y/y to 14.44mn tonnes in 2014. VSA expects steel consumption to further rise by 1.5-2mn tonnes in 2015.
- In 2015, long products demand is estimated to grow by 10-13%, and steel pipe and galvanised steel to grow higher at 15-18%, thanks to the revitalised realty sector.
- Due to better demand prospects, domestic production of finished steel products in 2014 increased strongly by 19.8% to 12.33mn tonnes. In 2015, overall steel production is expected to rise to 14mn tonnes in line with higher demand growth.
1.1 Global overview
1.2 ASEAN overview
1.3 Country overview
1.3.1 Market situation
1.4 Steel scrap
2. Market trends and outlook
2.1 Imports and exports
2.2 Tax regime
2.3 Foreign investment
2.4 Steel Industry Development Master Plan
2.6 Market outlook
3. Leading players and comparative matrix
3.1 Leading players
3.1.1 Pomina Steel Corporation (POM)
3.1.2 Hoa Sen Group (HSG)
3.1.3 Thai Nguyen Iron and Steel JSC (TISCO)
3.1.4 Dai Thien Loc Joint Stock Company (DTL)
3.2 Comparative matrix
3.3 SWOT analysis
4. Tables and charts
Table 1: Global apparent steel use (ASU) for finished steel products (2014–2016)
Table 2: Top 10 apparent steel using countries (2014-2016)
Table 3: Global crude steel production (mn tonnes) (2010–9M2015)
Table 4: Top 10 steel producing countries (mn tonnes) (9M2015)
Table 5: ASEAN apparent steel consumption (metric tonnes) (2014 vs. 2013)
Table 6: Vietnam key economic indicators (2010–2014)
Table 7: Vietnam apparent steel consumption of total steel products (tonnes) (2010–2014)
Table 8: Vietnam apparent steel consumption by finished steel products (tonnes) (2010–2014)
Table 9: Vietnam production of crude steel and hot-rolled steel products (tonnes) (2010–2014)
Table 10: Vietnam total production of finished steel products (metric tonnes) (2010–2014)
Table 11: Scrap demand and supply (metric tonnes) (2013 vs. 2014)
Table 12: Vietnam imports of iron and steel products (metric tonnes) (2010–2014)
Table 13: Vietnam exports of iron and steel products (metric tonnes) (2010–2014)
Table 14: Vietnam import duties of selected steel products - AFTA and ACFTA
Table 15: Large-scale steel projects in the pipeline in Vietnam
Table 16: Vietnam’s Steel Industry Development Master Plan targets (2015-2025)
Table 17: Asian steel prices (USD/tonne) (Sep 2013–Sep 2015)
Table 18: Vietnam’s domestic consumption forecast
Table 19: Pomina Steel Corp financial highlights (2013–9M2015)
Table 20: Hoa Sen Group financial highlights (2013-2015)
Table 21: TISCO financial highlights (2013–9M2015)
Table 22: Dia Thien Loc financial highlights (2013–9M2015)
Table 23: Leading players’ comparison of key financial ratios
Chart 1: Top 10 steel producing companies in 2014
Chart 2: ASEAN production, import, export and consumption (2008-2014)
Chart 3: Vietnam steel consumption by industries
Chart 4: Vietnam steel production and consumption (2004-2014)
Chart 5: Vietnam import and export of iron & steel products (2004-2014)
Chart 6: Vietnam import value of iron & steel products (2004-2014)
Chart 7: HRC and raw material prices (Q1/2014-Q4/2015)