Vietnam Ministry Tightening License of New Steel Projects

The Vietnamese Ministry of Industry and Trade has asked provinces and cities nationwide to tighten licensing procedures for new steel projects from the fourth quarter this year.

 

The move aims to handle the steel sector’s massively unplanned projects in recent months right after localities were allowed to grant investment licenses.

 

Under the new regulations focusing on sustainable development and environmental protection, those with capacities of between 500 cu.m and 700 cu.m for blast furnaces, 70 tons/batch for electric arc furnaces and 120 tons/batch for oxygen furnaces will be eligible for the licenses.

 

Vietnam has to date reported 32 licensed steel projects out of the steel sector’s planning, including 24 unsuitable to the Construction Law.

 

Vietnam’s total steel production capacity is estimated at 28 million tons/year from 2015 if all registered steel projects are put into operation as schedule, said the ministry.

 

The country’s current rolled steel production capacity reaches between six and seven million tons/year, surpassing around 30% of the domestic demand, added the ministry. (The People, Youth, CPV)