Enhancing product quality and cutting production costs would help domestic steel producers overcome difficulties (Photo: baodautu.vn)Hanoi (VNA) - Enhancing product qualityand optimising production costs would help domestic steel producers competewith cheap products imported from China, said Nguyen Van Sua, Vice President ofthe Vietnam Steel Association.
Sua said the domestic steel industry still had theopportunity to grow in 2019 as the Vietnamese Government had set a high growthtarget of 6.8-7 percent this year. The Government was also pushing to speed upthe disbursement of public investment funds, which would push up demand forsteel products used in construction projects. He expects the industry to growby ten percent in 2019.
According to the Ministry of Industry and Trade, the steelindustry was estimated to increase by 20 percent in 2018.
Le Phuoc Vu, chairman of steel maker Hoa Sen Group, said theindustry would face difficulties in 2019.
In the domestic market, there was more supply than demand.The inflow of cheap and poor-quality products from China was also contributingto the fierce competition.
Customs statistics showed that much of Vietnam’s importedsteel and iron products came from China with a volume of 6.27 million tonnes,accounting for 46 percent of the country’s total steel and iron import.
Vu added domestic steel producers also faced a number oftrade defence lawsuits over the past year, which were weighing down exports.
Vnsteel’s director Nguyen Dinh Phuc said the market wouldsee fierce competition in prices of steel products this year.
Phuc anticipates the Government will introduce policies totighten the import of steel products which Vietnam is able to manufacturedomestically. It should also create measures to prevent the influx of cheap andlow-quality steel products from China.
Solutions to stimulate demand and develop markets for steelproducts should be introduces, including speeding up disbursement of publicinvestment, creating farouvable conditions for steel producers to access creditand boosting the development of the real estate market, Phuc said.
Le Viet, Director of Southern Steel Sheet Co. Ltd, saidit was important for steel producers to reduce production costs and enhancequality to be able to compete.
Deputy Minister of Industry and Trade Do Thang Hai urgeddomestic producers to keep a close watch on the market to monitor supply anddemand and create appropriate production plans to avoid high inventoryvolumes.-VNA
Sua said the domestic steel industry still had theopportunity to grow in 2019 as the Vietnamese Government had set a high growthtarget of 6.8-7 percent this year. The Government was also pushing to speed upthe disbursement of public investment funds, which would push up demand forsteel products used in construction projects. He expects the industry to growby ten percent in 2019.
According to the Ministry of Industry and Trade, the steelindustry was estimated to increase by 20 percent in 2018.
Le Phuoc Vu, chairman of steel maker Hoa Sen Group, said theindustry would face difficulties in 2019.
In the domestic market, there was more supply than demand.The inflow of cheap and poor-quality products from China was also contributingto the fierce competition.
Customs statistics showed that much of Vietnam’s importedsteel and iron products came from China with a volume of 6.27 million tonnes,accounting for 46 percent of the country’s total steel and iron import.
Vu added domestic steel producers also faced a number oftrade defence lawsuits over the past year, which were weighing down exports.
Vnsteel’s director Nguyen Dinh Phuc said the market wouldsee fierce competition in prices of steel products this year.
Phuc anticipates the Government will introduce policies totighten the import of steel products which Vietnam is able to manufacturedomestically. It should also create measures to prevent the influx of cheap andlow-quality steel products from China.
Solutions to stimulate demand and develop markets for steelproducts should be introduces, including speeding up disbursement of publicinvestment, creating farouvable conditions for steel producers to access creditand boosting the development of the real estate market, Phuc said.
Le Viet, Director of Southern Steel Sheet Co. Ltd, saidit was important for steel producers to reduce production costs and enhancequality to be able to compete.
Deputy Minister of Industry and Trade Do Thang Hai urgeddomestic producers to keep a close watch on the market to monitor supply anddemand and create appropriate production plans to avoid high inventoryvolumes.-VNA
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