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Strong industrial production growth in the first half of 2024. Positive signs for the steel industry
Table Of Contents
Table Of Contents
Industrial production witnessed strong growth in the first half of 2024
According to the General Statistics Office, Vietnam’s economy showed many positive signals in the first half of 2024. The Gross Domestic Product (GDP) grew by 6.42% compared to the same period last year; total social investment at current prices was estimated at VND 1,451.3 trillion, an increase of 6.8%; total retail sales of goods and services at current prices reached an estimated VND 3,098.7 trillion, up 8.6% year-on-year. The total export and import turnover of goods was estimated at over USD 368.5 billion, an increase of 15.7% year-on-year, with exports up 14.5% and imports up 17%. The trade balance of goods saw a surplus of USD 11.63 billion. Industrial production recorded strong growth with an overall growth rate of 7.54%. Particularly, the processing and manufacturing industry was the driving force of the entire economy with an impressive growth rate of 8.67%.
Accordingly, the steel market also showed positive recovery signals. The construction sector grew by 7.34%, the highest increase compared to the same period in the years 2020-2024. However, the growth trend in the steel industry is not yet solid, as the production and sales of steel products reversed compared to May 2024, indicating that domestic steel demand has not truly recovered.
The growth trend in the steel industry has not shown any clear signs of stability
The Vietnam Steel Association (VSA) stated that currently, steel production is in a state of supply exceeding demand, exacerbated by increasing imports, intensifying price competition in the domestic steel market.
According to the Ministry of Industry and Trade, beyond short-term issues, the steel industry faces long-term bottlenecks. Production capacity is still limited, and Vietnam continues to be a net importer of steel. Domestic crude steel production only basically meets domestic production needs, with a shortage of high-quality and technical steel products.
Customs data for June 2024 shows that Vietnam imported 886,000 tons of hot-rolled coil (HRC), equivalent to 151% of domestic production. Of this, imports from China accounted for 77%. Regarding HRC import prices, products from China were very low, averaging USD 560/ton, lower than other countries by USD 45-108/ton.
Cumulatively, in the first half of the year, imported hot-rolled coil reached nearly 6 million tons, up 32% year-on-year. This import volume was equivalent to 173% of domestic production. Imports from China accounted for 74%, with the remainder from Taiwan (China), South Korea, India, Japan, and other countries.
In response to this situation, the VSA has recommended that relevant agencies continue to develop and complete the system of technical management standards and regulations, technical barriers, and quality management standards. This will prevent substandard technical and environmental steel products from flooding the Vietnamese market. Consequently, imported steel must have a certificate of compliance with Vietnamese quality standards.
Inspection certificate or consignment certificate is the basis for customs clearance procedures for imported steel
As an organization designated by the Ministry of Industry and Trade and the Ministry of Science and Technology to assess steel quality compliance, Vinacontrol provides comprehensive services to ensure that enterprise’s steel products meet standards and national technical regulations. Holding an inspection certificate or consignment certificate from Vinacontrol helps enterprises simplify all customs clearance procedures for imported steel products.
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For all service inquiries on steel conformity assessment from Vinacontrol, please contact our hotline at 0243.943.3840 or chat directly with our specialists for the best advice and support!
