VIR reported that a number of factors are expected to underpin a brighter performance in Vietnam’s steel sector in 2023 amid accelerated public investment as negative factors leading to the sector losses are fading. However, weakening demand remains a thorny issue with no sign of relaxing, with the real estate market almost frozen, a declining export market and spiking interest rates causing a deep dip in people’s construction demands. China's reopening will help resume construction activities and boost infrastructure investment, helping steel demand in Vietnam recover. This is one of the biggest driving forces supporting the export output growth of steel in 2023. Along with that, the increased demand for industrial production in China will also help the global supply chain to be restored and galvanise steel exporters to benefit indirectly. One more favourable factor for steel businesses is the government’s commitment to public investment, triggering soaring demand for iron and steel products, partly compensating for the stagnant real estate market. According to the 2023 plan, about USD 3.44 billion will be disbursed into public investment projects, an increase of 34% compared to the 2022 plan. The government has committed to accelerating public investment progress and supporting domestic steel firms to maintain market share and gain development momentum in the steel sector faces mounting difficulties.