Vietnam’s steel industry has experienced significant growth over the past decade, establishing the country as a notable player in the global steel market. Within Asia, the largest export market for Vietnamese steel has traditionally been the Association of Southeast Asian Nations (ASEAN). However, recent trends indicate a shift, with India emerging as a prominent importer of Vietnamese steel products.

Vietnam’s Steel Export Landscape

In 2023, Vietnam’s steel export turnover reached 8.35 billion USD, marking a 4.5% increase from the previous year. The export volume rose by 32.6%, totaling 11.1 million tons. The average export steel price remained relatively stable, hovering around 700 USD per ton.

ASEAN: A Traditional Stronghold

Historically, ASEAN countries have been the primary consumers of Vietnamese steel. In 2023, exports to the ASEAN region accounted for 28.62% of Vietnam’s total steel exports, amounting to 3.5 million tons valued at 2.4 billion USD. However, this represented a slight decline of 1.1% in volume and a more significant 17.1% decrease in value compared to the previous year.

Emergence of India as a Key Market

A notable development in 2023 was the surge in steel exports to India. Vietnam exported approximately 967.6 thousand tons of steel to India, valued at 715.2 million USD. This marked a staggering increase of 416.6% in volume and 319.3% in value compared to the previous year. This surge positions India as a significant market for Vietnamese steel within Asia.

Factors Influencing Export Trends

Several factors have contributed to these shifting dynamics:

1. Trade Remedies and Tariffs: Some ASEAN countries, including Malaysia, Indonesia, the Philippines, and Thailand, have implemented trade remedies such as anti-dumping duties on Vietnamese steel products. For instance, Malaysia has imposed measures on seven steel products from Vietnam, including galvanized and cold-rolled steel. Such measures can make Vietnamese steel less competitive in these markets, prompting exporters to seek alternative destinations.
2. Diversification of Export Markets: The Vietnamese steel industry has been proactive in exploring and expanding into new markets to mitigate risks associated with over-reliance on traditional partners. The significant increase in exports to India reflects this strategic diversification.
3. Global Economic Conditions: Fluctuations in global demand, driven by economic cycles, infrastructure projects, and industrial activities, influence the volume and value of steel exports. Economic growth in countries like India has led to increased demand for steel, benefiting Vietnamese exporters.

The Role of Midwest Steel in Vietnam’s Steel Market

Midwest Steel, a leading supplier and distributor in the global steel industry, plays a crucial role in connecting Vietnam’s steel manufacturers with major markets. The company specializes in sourcing high-quality steel and facilitating trade between Vietnam and other Asian countries. By leveraging its extensive network and expertise, Midwest Steel helps streamline the supply chain, ensuring efficient delivery of Vietnamese steel products to key markets such as India and ASEAN countries.

Through strategic partnerships with Vietnamese manufacturers, Midwest Steel enhances the competitiveness of Vietnam’s steel exports by providing reliable logistics, compliance with international standards, and market intelligence. As Vietnam continues to expand its steel export reach, Midwest Steel’s involvement will be instrumental in sustaining growth and navigating trade challenges.

Product Portfolio and Export Composition

Vietnam’s steel export portfolio is diverse, catering to various market needs:

• Rolled Steel: Leading the export charts, rolled steel accounted for 4.2 million tons, valued at 2.6 billion USD, representing 37.9% of total steel exports.
• Galvanized Steel: Exports reached 1.76 million tons, a 25.1% increase in volume. However, the value saw a slight decline of 4.8%, totaling 1.45 billion USD.
• Other Products: The export mix also includes steel bars, steel plates, and painted steel, each contributing to Vietnam’s robust steel export sector.

Future Outlook

The Vietnamese steel industry is poised for continued growth, supported by:

• Logistics Development: Vietnam’s logistics market ranks among the top 10 globally, with a compound annual growth rate projected at 5.5% from 2022 to 2027. Enhanced logistics capabilities facilitate efficient export operations.
• Trade Agreements: Vietnam’s active participation in free trade agreements (FTAs) provides preferential access to various markets, reducing tariff barriers and enhancing competitiveness.
• Market Diversification: Continued efforts to explore new markets, alongside strengthening existing ones, will mitigate risks associated with trade remedies and economic fluctuations.

Conclusion

While ASEAN has traditionally been the largest export market for Vietnamese steel in Asia, recent trends indicate a diversification of export destinations. The emergence of India as a significant importer underscores the dynamic nature of Vietnam’s steel export strategy. By adapting to global market conditions, addressing trade challenges, and leveraging logistical and trade advantages, Vietnam’s steel industry is well-positioned for sustained growth in the Asian market. Midwest Steel’s role in facilitating these exports further strengthens Vietnam’s position as a leading steel supplier in the region