Steel production at Luu Xa Steel Plant in the northern province of Thai Nguyen (Photo: VNA) HCM City (VNA) - The steel industry is likely to enjoy 10-12 percentgrowth next year, said the Vietnam Steel Association (VSA) at a workshop in HCMCity last week.
According to Chu Duc Khai, VSA General Secretary, steel consumption depends onthe country’s gross domestic product (GDP) growth.
With expected GDP growth of 6.2 percent this year, and the operation of 10steel projects in 2017, the sector’s growth is expected to further expand, Khaisaid.
However, he warned of challenges ahead as cheap steel from China would continueto flood the domestic market.
Vietnam also has to meet strict technical standards when it exportssteel.
To cope with difficulties, the country will have to apply trade protectionmeasures and technical barriers to restrict steel imports, he noted.
The VSA has filed petitions to the Government demanding anti-dumping measuresbe imposed on several steel imports.
The association has alsosent a document to the Ministry of Industry and Trade (MoIT) to propose somechanges in the draft zoning plan for Vietnam’s steel sector until 2025 with avision towards 2035.
Accordingly, the association suggested the ministry propose the Government a stopin managing the steel industry by planning. Regarding the current practices, asteel project cannot be approved if it is not named in the master plan for theindustry.
VSA Vice Chairman Nguyen Van Sua, said that economic sectors including steelshould not be managed by planning.
Instead, the zoning plan for Vietnam’s steel sector should be used as areference for businesses before deciding their investment, he said.
According to the Law on Planning which has been discussed in the NationalAssembly since September, 21 sectors would need planning at national level as they relate maritime resources and largescale infrastructure. But most opinionsagainst the planning for the steel industry, yet the ministry has still draftedplanning and gathered opinions.
Besides, the issuance ofinvestment certificates should be done with the agreements of relevantministries, not just the MoIT.
The association noted that the MoIT’s draft has shortcomings as it did notprovide development targets for hot rolled and high quality steel, as Vietnam hasimported 100 percent of these products.
The ministry still put the expansion of the Thai Nguyen Iron and SteelCorporation phase 2 in the draft zoning plan despite losses.
The VSA proposed that the MoIT resolve issues with the projects which have notstarted their construction or are unfeasible between 2017 and 2025.
At a recent Q&A session of the National Assembly, Minister of Industry andTrade Tran Tuan Anh said the country would not implement industrialprojects that harm the environment and that no groups could influence theproject approval process.
The ministry wants sustainable growth for industrial sectors and to use naturalresources efficiently.
The minister reiterated that Vietnam needs more steel projects, because by 2020the country will have to spend 15 billion USD a year on imported steel.
VSA figures revealed that last year Vietnam imported more than 14 milliontonnes of steel. The figure for this year is estimated at about 17.5 milliontonnes.-VNA
VNA
