Vietnam Overloaded with Steel Projects, Warns VSA
Vietnam, one of the emerging economies in Asia, is being flooded with steel projects, said Vietnam Steel Association in its official note to the government office Sep 13, warning of supply surplus.
Vietnam targets to produce annually 15-18 million tons of steel from 2020 so the country will need only one or two steel complexes, VSA argued.
From early this year, the country has approved five steel complex projects with combined registered investment of billions of US dollars, VSA noted, saying that most of these projects are scheduled for completion by 2010.
Notably, Posco kicked off construction of a 1.2 million tons rolling steel factory at a total cost of US$1.13 billion in southern Ba Ria- Vung Tau province, the signing to build US$4.5 billion steel complex by India’s Tata group and Vietnam Steel Corp and another US$7.3 billion steel factory of Malaysia’s Lion Group and Vinashin.
Vietnam’s steel consumption is forecast to hit 10 million tons of steel a year by 2010, 16 million tons by 2015 and 20 million tons by 2020, with domestic production making up 61 per cent, 62 per cent and 70 per cent, respectively. It is expected to export 0.5 million tons of steel and iron cast in 2010. (Youth)
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