Vietnam’s Steel Industry: Foundation for Industrialization and Sustainable Growth

In Vietnam’s industrialization journey, the steel industry plays a strategic role in the national economy, serving as a core material for infrastructure, construction, and energy, while also acting as a key driver of exports and manufacturing. Since 2020, Vietnam’s steel sector has experienced a strong transformation in production capacity, technology adoption, and its shift toward greener development.

1. Overview of Vietnam’s steel industry in the national economy

Vietnam is now among the Top 15 crude steel producers globally, with an annual output of 20–23 million tons (according to the Vietnam Steel Association – VSA). The industry’s growth is closely linked to infrastructure development, urbanization, and the expansion of industrial manufacturing.

1.1 Steel production capacity (2020–2025)

Between 2020 and 2024, crude steel output grew by 5–7% annually, despite global supply chain disruptions. The northern region hosts major steelworks such as Formosa Ha Tinh and Hoa Phat Dung Quat, while the southern region (Binh Duong – Dong Nai – Ho Chi Minh City) has developed a strong base for rolling, fabrication, and steel structure manufacturing.

Domestic enterprises are expanding production capacity, pursuing self-sufficiency in raw materials and technology, reducing dependence on imported billets, and increasing localization in heavy industrial projects.

1.2 Product structure and market segments

Construction steel and hot-rolled coil (HRC) account for about 70% of total output. The domestic market remains strong for infrastructure and industrial real estate, while flat steel, plate, and structural steel exports are growing rapidly toward ASEAN, the U.S., and Europe.

Vietnam’s steel value chain is increasingly integrated, covering ore mining, smelting, rolling, fabrication, and structural steel manufacturing for construction, energy, and supporting industries.

2. Leading steel companies and their roles in the supply chain

Vietnam’s steel industry includes major enterprises with modern production capabilities, serving as key players in the regional supply chain of industrial materials.

2.1 Top producers of structural steel

• Hoa Phat Group: Vietnam’s largest steel producer with over 8 million tons/year, operating major complexes in Dung Quat and Hai Duong.
• Formosa Ha Tinh: The largest flat steel manufacturer, accounting for nearly 30% of national HRC capacity.
• Hoa Sen Group: A leading exporter of galvanized sheet and steel pipes across ASEAN.
• Truong Thinh Corp: With nearly 20 years of experience, the company’s steel structure production capacity reaches 1,200–1,500 tons/month. Equipped with CNC welding, automatic shot blasting, 3D drilling, and ISO 9001:2015-certified systems, Truong Thinh’s products are widely used in industrial projects and exported to Thailand, Cambodia, and Myanmar.

2.2 Structural steel enterprises and value-added manufacturing

Companies like Truong Thinh Corp, ATAD, and QHPlus act as a bridge between crude steel producers and infrastructure, factory, and logistics center projects, contributing value-added manufacturing to Vietnam’s mechanical and industrial export sectors.

3. Industry trends and transformation (2025–2030)

3.1 Green transition and low-carbon steel

Vietnam’s steel industry is moving toward decarbonization, reducing CO₂ emissions through scrap recycling, renewable energy, and cleaner blast furnaces. Pilot projects by Hoa Phat and Formosa are being implemented to support Vietnam’s Net Zero 2050 commitment.

3.2 Digitalization and automation

The adoption of IoT, ERP systems, and Smart Steel Plant models enables manufacturers to optimize operations, improve quality control, and reduce energy costs. New factories in Binh Duong and Dong Nai are applying Tekla Structures software for integrated design–fabrication–erection workflows.

3.3 M&A and foreign investment (FDI)

Interest from Japanese, Korean, and Chinese investors continues to rise, particularly in high-end flat steel, advanced materials, and green steel. Technology transfer and joint ventures are expected to deepen Vietnam’s participation in the global steel supply chain.

4. Challenges in global integration

Despite its progress, the industry faces several challenges:

• Price competition and dumping risks from Chinese steel.
• Raw material price volatility (iron ore, coking coal, scrap).
• Compliance pressure from environmental standards and the EU Carbon Border Adjustment Mechanism (CBAM), requiring heavy investment in clean technologies and carbon certification.

5. Policies and development strategy

According to Vietnam’s Material Industry Development Strategy 2021–2030, Vision 2050 (Ministry of Industry and Trade):

• Increase crude steel capacity to 35–40 million tons/year by 2030.
• Develop major metallurgical centers in Central and Southern Vietnam.
• Prioritize investment in green, energy-efficient production technologies and implement new ISO and TCVN standards for manufacturers.

6. Export and international trade opportunities

Vietnam currently exports steel to over 40 countries, with key markets including ASEAN, the U.S., the EU, and India. Major products include HRC, coated steel, pipes, and structural steel. Vietnamese steel is gaining national brand recognition, with many large-scale projects meeting international certifications, paving the way for entry into high-specification markets.

7. Outlook toward 2030

According to forecasts by the World Steel Association and Bloomberg, global steel demand is expected to grow by 1.5–2% annually through 2030, with Vietnam standing out in Southeast Asia thanks to strong demand in infrastructure, renewable energy, and manufacturing.

The synergy between innovation, technology transfer, and collaboration among enterprises, research institutes, and government agencies will be key to achieving sustainable growth. Vietnam’s steel industry stands at a pivotal point—expanding in scale while advancing in green and digital transformation. With leadership from major corporations and continued efforts by domestic players such as Truong Thinh Corp, Vietnam has the potential to become a regional hub for sustainable steel production and export in the coming decade.