Market Trends of Vietnam Structural Steel Fabrication Industry
Increase In Infrastructure Activities is boosting the market
Vietnam is currently the top producer in the region because it makes up 29% of all the crude steel made. Vietnam's steel industry has grown rapidly over the last ten years, and by 2021 it is expected to rank 13 globally, with domestic crude steel output reaching a record level of 19.5 million tons per year.
When it comes to moving materials, Vietnam follows the standard method of using blast furnaces to turn iron ore and iron smelting into steel. Compared to electric induction furnace technology, which accounts for about 30% of production, this technique accounts for 70%. The OECD (2021) estimated that Vietnam's steelmaking induction furnace capacity is 1.63 million metric tons, ranking third among ASEAN economies.
FDI Inflows are increasing in Vietnam
In the past few years, political tensions between the U.S. and China have caused multinational companies to move south of the border to diversify their supply chains. This has made Vietnam a hotspot for foreign direct investment. Vietnam brought in USD 25.1 billion in the first 11 months of 2022. The Republic of South Korea is the nation that invests the most in Vietnam. By November 2022, the RoK had committed more than USD 80 billion to foreign direct investment projects in Vietnam. Vietnam needs FDI because it lacks the capital and various essential skills required to successfully build its economy. Thanks to FDI, which also supplies capital and constructs factories and other facilities, millions of jobs are created for Vietnamese citizens.
