Does Vietnam Produce Steel?

Yes. Vietnam is currently one of the largest steel-producing countries in Southeast Asia, with a fully integrated value chain covering everything from raw material mining and ironmaking to steel rolling and industrial steel structure fabrication. The steel industry not only supplies essential materials for construction and engineering but also serves as a driving force for national industrialization and modernization, directly contributing to GDP and export turnover. Over the past decade, Vietnamese steel enterprises have made remarkable progress in technology, productivity, and product quality. Many domestic corporations have invested billions of USD to modernize their production lines, helping Vietnam rank among the top 20 steel-producing nations worldwide.

1. How much steel does Vietnam produce annually?

Vietnam produces an average of 20–25 million tons of steel per year, with a steady growth trend during 2020–2025. This output not only meets domestic demand but also positions Vietnam as a key steel supplier within the ASEAN region. To better understand the scale and development of the industry, let’s examine the production capacity, output, and regional position of Vietnam in recent years.

1.1 Annual production capacity

As of 2025, Vietnam’s total steel production capacity reaches approximately 35 million tons per year, covering a diverse range of products from crude steel to value-added materials:

• Hoa Phat Group: 8 million tons/year – leading in output and fully integrated production.
• Formosa Ha Tinh Steel: 7 million tons/year – specializing in high-quality Hot Rolled Coils (HRC).
• Pomina, Vinakyoei, Southern Steel: over 5 million tons/year combined.
• Steel structure plants such as Truong Thinh Corp: 1,200–1,500 tons/month on average, mainly supplying large-scale industrial projects both domestically and abroad.

1.2 Crude steel output (2020–2025)

Despite global market fluctuations, Vietnam’s steel output continues to grow steadily:

• 2020: 19.5 million tons
• 2021: 23.3 million tons
• 2023: 21.5 million tons (slight dip due to global slowdown)
• 2025 (forecast): ~26 million tons

The strong rebound in 2024–2025 reflects rising domestic demand from infrastructure, real estate, and public investment projects.

1.3 Comparison with other ASEAN producers

Vietnam currently ranks 2nd in Southeast Asia, just behind Indonesia, and 18th globally in steel output. While many neighboring countries rely on HRC imports, Vietnam has achieved self-sufficiency in supply, strengthening its position in the regional steel value chain.

2. What types of steel does Vietnam produce?

Vietnam’s steel industry has evolved toward product diversification, serving sectors from civil construction and heavy industry to mechanical engineering, energy, and export infrastructure. The main product categories include construction steel, hot-rolled steel (HRC), cold-rolled and coated steel, and special alloy steels.

2.1 Construction steel (Rebar and wire rod)

This segment holds the largest market share, supplying major infrastructure, industrial, and residential projects. Key players include Hoa Phat, Pomina, and Viet Duc, while Truong Thinh Corp focuses on fabricating structural components such as beams, frames, and space trusses for factories and industrial buildings.

2.2 Hot rolled coil (HRC)

A high value-added product used in pipe, coated steel, machinery, and automotive manufacturing. Currently, only Formosa Ha Tinh and Hoa Phat Dung Quat produce HRC in Vietnam, with a combined capacity of around 10 million tons/year, significantly reducing imports from China and Japan.

2.3 Cold rolled and coated steel

Serving the refrigeration, furniture, and mechanical sectors. Companies such as Hoa Sen and Nam Kim have invested in advanced cold-rolling lines, making Vietnam a leading coated steel production hub in ASEAN.

2.4 Specialty and high-alloy steel

Though still a niche segment, it offers high value—mainly for oil & gas, wind power, and precision engineering. Some domestic mills are testing local production to replace imports, opening a strategic growth direction for the future.

3. Does Vietnam export steel?

Yes. Vietnam not only meets domestic demand but also acts as a major steel exporter in the region. Local enterprises are increasingly focused on quality assurance, international standards, and sustainable sourcing, enabling Vietnamese steel to enter demanding markets such as the EU, the U.S., and Japan.

3.1 Export volume and key markets

Vietnam exports 7–9 million tons of steel annually, equivalent to USD 9–10 billion in export value.
Main export markets include:

• ASEAN: Thailand, Malaysia, the Philippines.
• Europe & the U.S: strong demand for HRC and structural steel meeting EN and ASTM standards.
• India, the Middle East, and Australia: expanding imports of billet and fabricated steel components from Vietnam.

3.2 Major export products

• Hot Rolled Coil (HRC): ~40% of total export value.
• Steel billets and construction steel.
• Exported structural steel – notably from Truong Thinh Corp, a Vietnamese manufacturer specializing in fabrication and erection of steel structures for projects in Cambodia, Myanmar, Singapore, Australia, and the U.S., certified to ISO 9001:2015 and Tekla BIM standards.

3.3 Export value and growth outlook

Export turnover reached ~USD 9 billion in 2024, projected to rise to USD 11–12 billion by 2030, driven by global demand recovery and Vietnam’s competitive production cost advantage.

4. Does Vietnam import steel or raw materials?

Although Vietnam is self-sufficient in most finished steel products, it still depends on imported raw materials such as iron ore, coking coal, and scrap steel.

4.1 Imported raw materials

• Iron ore, coking coal: imported from Australia, Brazil, and India for blast furnace operations.
• Scrap steel: imported from Japan, the U.S., and Europe for Electric Arc Furnace (EAF) production.
• Steel billets: imported during periods of high domestic demand to balance supply.

4.2 Key supplier countries

China, Japan, South Korea, and Australia are strategic trade partners supplying both raw materials and metallurgical technology.

4.3 Import dependency level

Currently, 50–60% of steelmaking raw materials are imported. However, Vietnam is gradually becoming more self-reliant through:

• Developing domestic iron ore mines (Thai Nguyen, Ha Giang).
• Increasing recycled steel usage.
• Implementing circular economy models in steel production.

5. What steelmaking technologies are used in Vietnam?

Technology is the decisive factor in Vietnam’s steel productivity and product quality. Domestic steel plants currently operate using three main technologies:

5.1 Blast furnace (BF) and basic oxygen furnace (BOF)

Applied in large-scale integrated plants, enabling continuous production from iron ore to crude steel. Hoa Phat and Formosa utilize this technology efficiently, achieving products that meet international quality standards.

5.2 Electric arc furnace (EAF)

Used by medium and small enterprises, EAF relies on scrap steel, offering better energy efficiency and lower carbon emissions. It represents a key pathway toward Vietnam’s low-carbon steelmaking strategy.

5.3 Automation and environmental control technology

Modern plants – particularly Truong Thinh Corp – have invested in robotic welding, CNC cutting, shot blasting, and automated powder coating, all integrated with Tekla BIM-based management. These systems deliver ±1mm fabrication precision, 15% energy savings, and significant reductions in industrial emissions.

6. Environmental challenges and policy directions

The steel sector faces growing pressure to pursue green and sustainable production, aiming to both reduce emissions and improve energy efficiency.

6.1 Carbon emissions and energy use

The steel industry accounts for over 10% of national industrial CO₂ emissions, mainly from traditional blast furnace processes. The shift to EAF technology and steel recycling is an inevitable trend.

6.2 Government policy on sustainable production

Vietnam’s government has issued a Steel Industry Development Strategy to 2030, vision to 2050, targeting:

• 20–30% reduction in greenhouse gas emissions.
• Higher recycling and material reuse rates.
• Incentives for investment in “green steel” technology.

6.3 Recycling and circular economy initiatives

Pioneering companies like Truong Thinh Corp are implementing:

• Closed-loop wastewater treatment systems.
• Paint and steel scrap recycling.
• 4MW rooftop solar power systems at production facilities.

These initiatives underscore their commitment to Vietnam’s Net Zero 2050 goal.

7. Outlook for Vietnam’s steel industry

Vietnam’s steel sector is entering a new growth cycle, supported by infrastructure expansion, export momentum, and the global shift toward green industry.

7.1 Growth forecast (2025–2030)

According to the Vietnam Steel Association (VSA), total national output may reach 30–32 million tons by 2030, growing 4–6% annually. Key infrastructure projects such as the North–South Expressway, Long Thanh Airport, and renewable energy facilities will continue driving domestic steel demand.

7.2 Investment and capacity expansion trends

Major corporations are investing in coastal industrial zones in Central and Southern Vietnam, while expanding exports of HRC and internationally certified structural steel.

7.3 Regional and global competitiveness

With advanced technology, skilled workforce, and international project capabilities, enterprises like Truong Thinh Corp are helping Vietnam evolve into a regional hub for steel manufacturing, processing, and export.

Vietnam not only produces steel—it is asserting itself as a regional steel powerhouse, with a comprehensive value chain, advanced technologies, and sustainable development orientation. Domestic enterprises, particularly Truong Thinh Corp, are playing a vital role in this transformation: from high-precision structural steel fabrication and turnkey erection services to exporting world-standard steel products to the global market.