VNS quoted Mr Pham Chi Cuong chairman of Viet Nam Steel Association as saying that steel exports are likely to hit a record 2 million tonnes in 2011 to earn the country a turnover of USD 1.8 billion.

Mr Cuong attributed the results to the growing efforts by steel companies to seek new export opportunities at a time when supply is exceeding domestic demand.

The massive licensing of steel production projects in recent years has led to a supply which currently triples demand. The gloomy real estate market has also resulted in an excess of 365,000 tonnes of steel in the country's inventory.

Meanwhile, the steel industry typically had a surplus of imports so if it failed to find export opportunities it would not have enough foreign currency to import raw materials for production.

Mr Cuong explained that "Fostering exports is an urgent task in the current context."

Trade promotion schemes from the Government and relevant sectors had also shown a positive effect.

He said that "These programs have helped companies find partners in foreign countries." He added that besides traditional markets such as ASEAN countries, the businesses also boosted their exports to the US, the Middle East and the EU.

He said that the higher quality also helped Vietnamese steel products gain a competitive edge in international markets. In order to further expand export markets, the association emphasized the importance of regular exchanges of market information between enterprises and Vietnamese trade offices abroad.

(Sourced from Vietnam News Service)