VSA: Optimistic Projections for Vietnam's Steel Sector in 2024

VietnamImage Source: Oreaco


The Vietnam Steel Association reports a promising end to 2023, hinting at a potential recovery for the domestic steel sector in 2024. With steel sales reaching a 20-month high in November and December 2023, experts anticipate a 6.7% YoY rise in steel production to 29 million metric tons. Hoa Phat Group, a leading producer, is poised for a 29% surge in construction steel sales, driven by increased demand for construction materials. To meet the growing market needs, Hoa Phat Group plans to double its hot rolled coil production capacity by 2025. Steel experts emphasize the importance of green production practices to reduce carbon emissions and advise focusing on the real estate market to support the steel sector's breakthrough in 2024.



With a positive turn of events witnessed in the closing months of 2023, the domestic steel sector in Vietnam appears to be on the path to recovery, sparking optimism among experts for the year 2024.

According to the Vietnam Steel Association (VSA), the steel sector experienced a notable upswing, with sales reaching their highest levels in 20 months during November and December 2023. The growth ranged between 20-40% for different steel products. Bolstering this optimistic outlook are favorable indicators in the domestic economy and government policies promoting public investment.

The VSA predicts that steel production and consumption may see year-on-year increases of 6.7% and 7.4%, reaching 29 million metric tons and 21.67 million metric tons, respectively. This positive projection is fueled by a robust domestic economy and government initiatives fostering public investment.

Viet Dragon Securities forecasts a substantial surge in construction steel sales for Vietnam's leading producer, Hoa Phat Group. The estimate suggests a 29% increase to 4.8 million metric tons in 2024, driven by heightened demand for construction materials.

The Vietnam Steel Corporation (VSA) reported significant sales figures in the last month of 2023, with over 324,300 metric tons of steel sold. This marked a 53% increase over the previous month and a noteworthy 36% rise compared to the same period the previous year.

To address the escalating market demand, Hoa Phat Group has strategic plans to operationalize the second phase of its factory complex in 2025. This move aims to double the plant's hot rolled coil production capacity to 6 million metric tons.

Renowned steel expert, Nguyen Van Sua, emphasizes the importance of green production practices to reduce carbon emissions and advocates for the expansion of export markets. As domestic firms gear up for opportunities, he urges government bodies to design robust policies supporting the real estate market, thereby propelling the steel sector's breakthrough in 2024.

Dinh Quoc Thai, General Secretary of VSA, anticipates a surge in domestic steel demand in tandem with the recovery of the real estate market in 2024. He expects increased construction projects and foresees the government expediting the disbursement of public investment capital to stimulate breakthrough growth, particularly in sectors like steel.

The Ministry of Industry and Trade affirms its commitment to researching and applying suitable trade defense measures to safeguard the domestic steel market. Collaboration with industry associations and businesses is emphasized to seize opportunities in the domestic market. Additionally, the ministry aims to finalize a steel strategy until 2030, with a vision extending to 2050, laying the foundation for the industry's rapid and sustainable growth, set to be completed in the third quarter of 2024.


The steel sector in Vietnam is poised for a resurgence in 2024, fueled by positive indicators and strategic initiatives. With rising sales, proactive measures by leading producers like Hoa Phat Group, and a focus on green production practices, the industry is set to play a pivotal role in the nation's economic growth. As the government continues to support and strategize, the steel sector's breakthrough appears promising, aligning with broader economic goals.

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