VAS Group, one of the biggest steel producers in Vietnam, has exported its first batch to Houston, the U.S. from Nghi Son International Port in the central province of Thanh Hoa.
Following the first shipment, the firm will ship its second batch to the U.S., with the destination being Los Angeles, VAS said in a Tuesday announcement, without further details.
VAS attributed its achievements to its “green and clean” production, based on a circular economic model set by the firm since its inception. Prior to the U.S. market, VAS had exported its steel to mainland China, South Korea, Taiwan, Japan, Guatemala, and other markets.
VAS now operates five factories - one in Thanh Hoa province, two in the central city of Danang, and two in the southern province of Binh Duong, with a total annual capacity of 4.35 million tons of square billet and 2.5 million tons of rebar and wire rod. It has also invested in Nghi Son International Port, which can help the firm with the loading, unloading, and circulating of 15 million tons a year in bulk cargo.
Vietnam’s steel production fell 27.9% year-on-year to 2.41 million tons in March, while sales dropped 29% to 2.22 million tons, according to the Vietnam Steel Association.
In the first quarter of this year, steel production in Vietnam decreased 20.9% year-on-year to 6.69 million tons. Steel sales reached 6.07 million tons, down 25.4%, including 1.66 million tons for export, down 8.9%.
Regarding construction steel, production reduced 23% year-on-year to 2.7 million tons, while sales declined 28.5% to 2.6 million tons, the association said. It attributed the results to the struggling real estate market, while steel producers had to increase their selling prices amid the rising cost of materials.
Hoa Phat Group remained the biggest player with one-third of the construction steel market share, followed by VNSteel with 12.3%, and Formosa with 6.6%.