Under the strategy on steel industry development from 2007-2015 with a vision towards 2025, which has been approved by the Prime Minister, Vietnam strives to export 0.5mil tonnes of steel of different kinds.
According to the Ministry of Industry and Trade, the total volume of finished steel to be demanded by 2010 will be 11-12mil tonnes. The figures will be 15-16mil tonnes by 2015 and 24-25mil tonnes by 2025.
The general goal of the steel industry is to satisfy at the highest possible level the demand for steel products of the national economy and make steel for export. As for cast iron production, Vietnam aims to churn out 1.5-1.9mil tonnes by 2010, 5-5.8mil tonnes by 2015 and 10-12mil tonnes by 2025. As for ingot steel production, the local industry strives to put out 3.5-4.5mil tonnes by 2010, 6-8mil tonnes by 2015 and 12-15mil by 2025. Meanwhile, the production of finished steel is expected to provide 6.3-6.5mil tonnes by 2010, 11-12mil by 2015, and 19-22mil tonnes by 2025, including 11-13mil tonnes of flat steel and 0.2mil tonnes of special products.
Not only aiming to satisfy domestic demand, the strategy says that Vietnam will export steel products. However, the targeted exports prove to be modest: 0.5-0.7mil tonnes of cast iron and steel of different kinds by 2010. The volume to be exported 15 years later, by 2025, will be 1.2-1.5mil tonnes.
The strategy mentions the six big projects, saying that the implementation of the six projects, scheduled for 2007-2015, will be the most important tasks. These include 1. the Ha Tinh Steel Combinate (expected capacity 4.5mil tonnes/year, to be operational in 2011) 2. Dung Quat Complex (5mil tonnes/ year, the second phase of the project to begin in 2011) 3. South Korea’s Posco’s hot and cold rolled and galvanised steel mill (3mil tonnes/year) 4. the plate rolled steel mill to be invested in by India’s ESSA and a local partner 5. the project on expanding Thai Nguyen Cast Iron and Steel Mill and 6. the Lao Cai Steel Combinate.
Besides high capacity cast iron blast furnaces, Vietnam will also pay appropriate attention to developing medium- and small-scale workshops in northern mountainous areas, including Lao Cai, Tuyen Quang, Cao Bang, Ha Giang, Yen Bai, Bac Kan with the total capacity of 1mill tonnes a year.
In the 2016-2015 period, Vietnam will focus on producing steel with electricity-run furnaces and consider producing special steel products used in engine manufacturing and national defence.
Under the recently approved strategy, Vietnam will need $10-12bil from 2007-2025 for the investment in steel mills, of which $8bil will be used in 2007-2015. In order to have such a huge capital, Vietnam will have to diversify capital sources while pushing up the equitisation process.
Eight groups of solutions for the steel industry’s development are mentioned in the strategy, including ones on investment cooperation, material source development, training staffs, investment in science and technologies, and environmental protection as well.
Source: VNE
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