Vietnam produced nearly 4.3 million tons of steel in the first two months of 2023, down 16.3 per cent year-on-year, according to the Vietnam Steel Association (VSA).

Steel consumption stood at over 3.85 million tons, down 23.2 per cent.

Vietnam exported 672,000 tons of steel in January, earning $457 million.

Major markets were ASEAN, the EU, India, and Turkey.

Looking at the steel market in 2023, some analysts said fierce competition in the domestic market together with tightened monetary policy and interest rate increases may negatively affect demand and the production and trade of steel enterprises.

Low demand in the construction sector will also have an impact on demand for construction materials, including steel.

Analysts also forecast that steel demand in ASEAN is likely to slow this year, affecting Vietnam’s exports, as the bloc consumes around 10 per cent of the total.

However, steel producers are still expected to grow, as steel demand is predicted to increase due to the implementation of more public investment projects this year.

The transport sector has been allocated a record VND94 trillion ($4 billion) in public investment capital this year.