Although the construction season had begun, the sale volume in April ofalmost all steel enterprises were lower than March's sale figure, theVietnam Economic News said on May 19.
The frozen real estatemarket and the slow development of the construction market and theshipbuilding industry were some reasons that Vietnam Steel Association(VSA) Chairman Ho Nghia Dung told the media when mentioning difficultiesof the steel industry. The low growth of infrastructure development wasalso a reason of the humble steel sales.
The main problem liedin the imbalanced relation between supply and demand on the steelmarket. According to the South East Asia Iron & Steel Institute(SEAISI)’s statistics, Vietnam ranked first among ASEAN countries interms of numbers of new steel projects, with more than 30 new steelprojects in 2013. Apart from the imbalanced relation between supply anddemand, steel enterprises in Vietnam also have to face the pressurecaused by cheap steel products from China.
VSA Chairman Ho NghiaDung said that the steel market remains potential. Steel consumption percapita in Vietnam is 140 kilograms while that in Thailand is 270kg andthe world average is 240kg.
While the market remains difficult,many steel businesses have been growing well, including the Hoa SenGroup, Vietnam-Australia Steel Joint Venture Company, the Vietnam-Japansteel joint venture company, and Hoa Phat Steel Joint Stock Company.
VietnamSteel Corporation (VNSTEEL) General Director Nghiem Xuan Da said thatVNSTEEL will restructure its working apparatus, provide support to thefive loss making companies and give greater power to subsidiaries tooperate more effectively and minimize losses in 2014 and the followingyears.
Ministry of Industry and Trade’s Department of HeavyIndustry Director Nguyen Manh Quan said that steel businesses shouldreorganise their markets and restructure production to improve qualityand competitiveness, and that they should be determined to create goodquality, reasonable-price products and approach cost effectiveproduction.
VSA Chairman Ho Nghia Dung said that VSA has proposedthat the government have solutions to develop the engineering industryto increase steel demand and sales.-VNA
The frozen real estatemarket and the slow development of the construction market and theshipbuilding industry were some reasons that Vietnam Steel Association(VSA) Chairman Ho Nghia Dung told the media when mentioning difficultiesof the steel industry. The low growth of infrastructure development wasalso a reason of the humble steel sales.
The main problem liedin the imbalanced relation between supply and demand on the steelmarket. According to the South East Asia Iron & Steel Institute(SEAISI)’s statistics, Vietnam ranked first among ASEAN countries interms of numbers of new steel projects, with more than 30 new steelprojects in 2013. Apart from the imbalanced relation between supply anddemand, steel enterprises in Vietnam also have to face the pressurecaused by cheap steel products from China.
VSA Chairman Ho NghiaDung said that the steel market remains potential. Steel consumption percapita in Vietnam is 140 kilograms while that in Thailand is 270kg andthe world average is 240kg.
While the market remains difficult,many steel businesses have been growing well, including the Hoa SenGroup, Vietnam-Australia Steel Joint Venture Company, the Vietnam-Japansteel joint venture company, and Hoa Phat Steel Joint Stock Company.
VietnamSteel Corporation (VNSTEEL) General Director Nghiem Xuan Da said thatVNSTEEL will restructure its working apparatus, provide support to thefive loss making companies and give greater power to subsidiaries tooperate more effectively and minimize losses in 2014 and the followingyears.
Ministry of Industry and Trade’s Department of HeavyIndustry Director Nguyen Manh Quan said that steel businesses shouldreorganise their markets and restructure production to improve qualityand competitiveness, and that they should be determined to create goodquality, reasonable-price products and approach cost effectiveproduction.
VSA Chairman Ho Nghia Dung said that VSA has proposedthat the government have solutions to develop the engineering industryto increase steel demand and sales.-VNA
