Vietnam’s iron and steel production for December 2024 is projected to be 1.8 million tons, with an estimated total of 21.74 million tons for the entire year, according to Vietnam’s General Office of Statistics. This reflects a year-on-year increase of 1.8 percent compared to 2023, indicating steady growth in the sector.
In November 2024, the country produced 1.71 million tons of iron and steel, showing stable output despite a slight increase in December.
Vietnam’s iron and steel production is a critical component of its industrial sector, supporting its rapidly growing construction, manufacturing, and automotive industries. As one of the largest producers of steel in Southeast Asia, Vietnam plays an increasingly important role in both regional and global markets. The country produces a wide range of iron and steel products, including billets, rebar, hot-rolled and cold-rolled coils, and galvanized steel, which are used in construction, infrastructure, and various other industries.
The production of iron and steel in Vietnam is largely dominated by state-owned enterprises, such as the Vietnam Steel Corporation (VnSteel), and private companies like Hoa Phat Group, which is the largest steel producer in the country. These companies have invested heavily in modernizing production facilities, improving efficiency, and increasing capacity to meet the growing demand for steel. Hoa Phat Group, in particular, has expanded its steel production capabilities significantly, focusing on both the domestic market and exports.
Vietnam’s steel industry faces a strong reliance on imported raw materials, particularly iron ore and scrap metal. While the country has some iron ore reserves, they are not sufficient to meet domestic demand, making it dependent on imports from countries like Australia, Brazil, and others. The industry also relies on coal, which is used in the blast furnace process, further increasing its dependence on global markets.
Vietnam’s growing infrastructure projects, such as highways, bridges, and urban development, are driving demand for steel products, making it a key sector for economic development.
Challenges for Vietnam’s iron and steel production include fluctuating raw material prices, competition from global steel producers, and environmental concerns related to energy-intensive production processes. The government has been working to address these challenges by encouraging more sustainable practices in the industry, such as increasing energy efficiency and promoting the use of alternative, greener technologies.
As Vietnam continues to expand its industrial base and invest in infrastructure, its iron and steel production sector is expected to play a critical role in driving the country’s economic growth, reducing reliance on imports, and contributing to global steel markets.