Vietnam’s iron, steel, and cast iron production surged by 225.2 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this marked a decline from December 2024, when output was up 260.2 percent from 2019 levels.
Month-on-month, production fell by 11.4 percent in January compared to December, reflecting a temporary slowdown. Year-on-year, output saw a slight dip of 2.1 percent from January 2024.
Of note, Vietnam’s iron, steel, and cast iron production has experienced significant growth, driven by both domestic demand and the increasing role of the country in the global manufacturing supply chain. The iron and steel industry is a key component of Vietnam’s industrial sector, supporting a wide range of industries, including construction, automotive, and infrastructure development.
Vietnam’s steel production has been expanding rapidly over the past decade, primarily due to the country’s growing construction sector, which is one of the largest consumers of steel products. The production of steel in Vietnam includes a variety of products, such as long steel (used for construction and infrastructure projects) and flat steel (used in automotive and appliance manufacturing). Vietnam produces both high-quality domestically made steel products and imports steel to meet demand.
The main raw material for steel production is iron ore, and Vietnam has some domestic reserves, though it is not a major iron ore producer. As a result, the country imports a significant portion of the iron ore used in steel manufacturing. Vietnam’s largest steel producer, Hoa Phat Group, plays a dominant role in the country’s iron and steel production, with facilities capable of producing millions of tons of steel per year. Other major companies, such as Vinacomin and Formosa Ha Tinh Steel Corporation, have also invested heavily in the steel industry, expanding production capacities to meet both local and international demand.
Cast iron production in Vietnam is closely tied to the steel industry, with cast iron used primarily for construction, automotive, and industrial applications. The production of cast iron in Vietnam is typically concentrated in the production of castings for machinery, automotive components, and construction materials. Cast iron is also used for the production of pipes, manhole covers, and other infrastructure-related components. While Vietnam produces a variety of cast iron products, much of the demand is met through imports, as the country has limited domestic capacity for the production of specialised cast iron products.
Vietnam has become a significant exporter of steel products in Southeast Asia, with steel products being shipped to countries such as Japan, South Korea, the United States, and other Southeast Asian nations. The country’s low labour costs and investment in modern steel production technologies have made it an attractive location for steel production, with Vietnamese steel products being competitive in terms of price and quality.
However, Vietnam’s steel industry faces challenges, such as overcapacity, environmental concerns, and the need for advanced technology to improve efficiency and product quality. The country’s reliance on imported raw materials, particularly iron ore, also poses risks related to global supply chain fluctuations.