Vietnam eyes steel exchange establishment as part of long-term industry overhaul

Vietnam has approved a long-term strategy to restructure its steel industry, shifting away from volume-driven growth toward higher-value, environmentally-friendly products, while laying the groundwork for domestic and international steel exchanges to improve market transparency and integration.

Deputy Prime Minister Bui Thanh Son on Monday signed Decision 261/QD-TTg approving the steel industry development strategy to 2030, with a vision to 2050.

Under the strategy, Vietnam aims to shift away from volume-driven growth toward higher value-added steel products that meet national and international standards, while reducing environmental impact and improving resource efficiency. The plan also targets faster export growth and stronger competitiveness in global markets.

By 2030, the steel sector is expected to meet around 80-85% of domestic demand. Crude steel output is targeted at 25-26 million tons a year, with an annual growth of 7-8%, while finished steel production is projected to reach 32-33 million tons, growing 5.5-6.5% annually. Per-capita steel consumption is forecast at 270-280 kg a year.

In the 2030-2035 period, domestic supply coverage is set to rise to 85-90%, with a stronger focus on high-value steel products serving supporting industries such as automotive manufacturing, shipbuilding, mechanical engineering, and energy.

During this phase, crude steel production is expected to grow 6-7% a year to 33-36 million tons, while finished steel output is projected at 40-43 million tons, growing 4.5-5.5% annually. Per-capita steel consumption would rise to 340-360 kg.

Looking further ahead, the government expects Vietnam’s crude steel capacity to reach 65-70 million tons by 2050, with finished steel output of 75-80 million tons. Per-capita consumption is projected to approach levels seen in developed economies, at 570-650 kg a year.

A key pillar of the strategy is the development of steel products that Vietnam currently does not produce domestically but which have strong demand, alongside investment in advanced technologies, green steel, alloy steel, and specialized steel for manufacturing industries. The plan emphasizes raising the role of science and technology to boost productivity and meet international quality standards.

Notably, the strategy calls for mastering the technology to produce specialized steel for national strategic infrastructure, including rail steel for high-speed rail projects.

The government also plans to develop a nationwide steel distribution and trading system, including domestic and international steel exchanges, supported by digital platforms and smart management models to promote a more transparent and healthy market.

On policy support, the strategy encourages exploration and development of domestic iron ore resources, faster licensing procedures, and mechanisms to ease land clearance, resettlement and job creation in mining areas. It also stresses the use of trade defence measures to protect the domestic market from steel imports, alongside early-warning systems to help exporters manage rising global trade remedy risks.

In 2025, Vietnam’s crude steel output reached a five-year high of 24.7 million tons, surpassing the previous peak recorded in 2020 and marking a 12% year-on-year increase, according to the Vietnam Steel Association (VSA). Total steel sales in 2025 reached 24.1 million tons, up 12.9% year-on-year, with exports accounting for 3.15 million tons, an increase of 12.8% compared with 2024.