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[Asian Steel Watch] Vol.7 (2019.8)

[Asian Steel Watch] Vol.7 (2019.8)

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Market Trend and Analysis Vietnam’s Steel Industry: Characteristics and Steel Demand Forecast

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With the massive FDI infusions following the 2000s, Vietnam has registered steady growth with a CAGR of over 6%, thanks to its FDI-centered growth strategy. Lacking the funds to build integrated steel mills (ISM), Vietnam took a step-by-step approach to build downstream facilities first for producing flat products and then upstream facilities to complete an ISM. Under the government’s policy support, the steel industry is seeking to shift its industrial structure by building an ISM. Although Vietnam is a steel-consuming country, particularly for construction, growth of steel consumption for automobiles and machinery continues to slow. Vietnam’s construction industry is expected to maintain a CGAR of 7.2% by 2022.

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