HANOI: Vietnam has set a target for domestic steel output to meet about 80% to 85% of local demand by 2030 under a national strategy approved in Prime Ministerial Decision No. 261/QD-TTg. The decision, signed on Feb. 9 by Deputy Prime Minister Bui Thanh Son, outlines production, technology and environmental goals through 2030, with a vision to 2050.
Under the strategy’s 2030 objectives, crude steel output is targeted at about 25 million to 26 million tons a year, with finished steel production projected at about 32 million to 33 million tons a year. Average steel consumption is set at about 270 to 280 kilograms per person a year. The strategy states the industry should increasingly supply domestic manufacturing sectors and raise the share of higher value steel in overall output.
For 2035, the plan targets crude steel output of about 33 million to 36 million tons a year and finished steel output of about 40 million to 43 million tons a year. It sets average consumption at about 340 to 360 kilograms per person and aims for domestic production to cover roughly 85% to 90% of demand. The strategy’s 2050 vision projects crude steel output of about 65 million to 70 million tons a year and finished steel output of about 75 million to 80 million tons a year.
The strategy prioritizes a shift in the product mix toward higher value-added steel, including alloy steel, stainless steel and quality grades used in manufacturing and transport. It lists priority long products such as prestressed and reinforcing steel, steel sections, shipbuilding steel, railway rails, wind power tower steel and products for national defense and security needs. It also identifies flat and specialty products, including hot-rolled coil for domestic use and export.
Output targets and product priorities
Vietnam’s strategy links output goals to supply chain development for raw materials and inputs. It calls for efficient use of domestic iron ore resources and a coordinated plan for iron ore supply from both domestic sources and imports for iron and steelmaking facilities. It also promotes the use of scrap steel, including imported scrap, and encourages collection, dismantling and processing systems to expand recycled inputs for domestic production.
On energy and technology, the plan calls for more efficient use of energy and resources across steel production and supports investment in advanced equipment and cleaner processes. It references the use of renewable energy and the application of hydrogen (H2) and ammonia (NH3) in steel production to align with Vietnam’s net-zero goal for 2050. The strategy also includes research and phased adoption of production routes such as BF/BOF and DRI/EAF to reduce carbon dioxide emissions and meet international carbon-related requirements.
Industrial hubs and market oversight
The strategy sets out a spatial development approach that concentrates large-scale steel projects near deep-water ports and major infrastructure. It identifies key production centers in central and southern regions, including the Dung Quat economic zone in Quang Ngai, the Vung Ang economic zone in Ha Tinh, the Nghi Son economic zone in Thanh Hoa, and the Ba Ria-Vung Tau and Ho Chi Minh City industrial area. It links these hubs to port capacity, transport corridors and access to energy supply, including renewable sources.
The decision also directs ministries and local authorities to strengthen standards, market supervision and trade controls. It calls for issuing or updating national standards and technical regulations for steel products and enhancing inspection and control of imported steel quality. The strategy includes measures to combat trade fraud and tax evasion and supports the use of trade defense tools consistent with international practice when there are signs of dumping or subsidized imports. It also encourages modern trading mechanisms, including steel trading floors and digital platforms, and includes work toward a sector-wide data system to support production, management and consumption. – By Content Syndication Services.