Steel production is forecast to increase 2-3 per cent year-on-year in 2023 to meet both domestic consumption and export demand, according to the Vietnam Steel Association (VSA).

However, the market is predicted to continue to be complex due to unexpected changes in global prices of both steel materials and products.

The VSA said falling demand for steel in most regions around the world together with a downturn in the real estate market has negatively affected steel prices. In April alone, domestic producers had to cut prices three times.

In order to tackle the difficulties facing local businesses, the VSA proposed the Ministry of Finance to reduce VAT on steel products from 10 per cent to 8 per cent, cut interest rates, remove obstacles in the real estate market, and regularly update businesses with information on the market and measures to cope with trade barriers in other countries.

Crude steel production fell 22% year-on-year in the first four months of the year, to nearly 6 million tons, while sales were down 18 per cent to 6.1 million tons.