Steel sector to grow 10-12 per cent next year
Steel sector to grow 10-12 per cent next year
The steel industry is likely to enjoy 10-12 per cent growth next year, said the Viet Nam Steel Association (VSA) at a workshop in HCM City last week.
According to Chu Duc Khai, VSA General Secretary, steel consumption depends on the country’s gross domestic product (GDP) growth.
With expected GDP growth of 6.2 per cent this year, and the operation of 10 steel projects in 2017, the sector’s growth is expected to further expand, Khai said.
However, he warned of challenges ahead as cheap steel from China would continue to flood the domestic market.
Viet Nam also has to meet strict technical standards when it exports steel.
To cope with difficulties, the country will have to apply trade protection measures and technical barriers to restrict steel imports, he noted.
The VSA has filed petitions to the Government demanding anti-dumping measures be imposed on several steel imports.
VSA chief cautions government on steel sector plan
The VSA has sent a document to the Ministry of Industry and Trade (MoIT) to propose some changes in the draft zoning plan for Viet Nam’s steel sector until 2025 with a vision towards 2035.
Accordingly, the association suggested the ministry that propose the Government a stop in managing the steel industry by planning. Regarding the current practices, a steel project cannot be approved if it is not named in the master plan for the industry.
VSA Vice Chairman Nguyen Van Sua, said that economic sectors including steel should not be managed by planning.
Instead, the zoning plan for Viet Nam’s steel sector should be used as a reference for businesses before deciding their investment, he said.
According to the Law on Planning which has been discussed in the National Assembly since September, 21 sectors would need planning at national level as they relate maritime resources and large scale infrastructure. But most opinions against the planning for the steel industry, yet the ministry has still drafted planning and gathered opinions.
Besides, the issuance of investment certificates should be done with the agreements of relevant ministries, not just the MoIT.
The association noted that the MoIT’s draft has shortcomings as it did not provide development targets for hot rolled and high quality steel, as Viet Nam has imported 100 per cent of these products.
The ministry still put the expansion of the Thai Nguyen Iron and Steel Corporation phase 2 in the draft zoning plan despite losses.
The VSA proposed that the MoIT resolve issues with the projects which have not started their construction or are unfeasible between 2017 and 2025.
At a recent Q&A session of the National Assembly, Minister of Industry and Trade Tran Tuan Anh said the country would not implement industrial projects that harm the environment and that no groups could influence the project approval process.
The ministry wants sustainable growth for industrial sectors and to use natural resources efficiently.
The minister reiterated that Viet Nam needs more steel projects, because by 2020 the country will have to spend US$15 billion a year on imported steel.
VSA figures revealed that last year Viet Nam imported more than 14 million tonnes of steel. It is estimated that this year the country will import about 17.5 million tonnes.
