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Vietnam to import 5 million tons of steel in 2009
Vietnam will import about 5 million tons of steel to meet domestic demand which is estimated at 10.5 million tons in 2009, serving the construction, auto and other industries, authorities said Friday.
The Ministry of Industry and Trade said the demand for construction in the country and for export would be 4.95 million tons but the industry had to import 800,000 tons to meet it as local steel mills would only supply about 4.15 million tons.
The ministry has asked local producers and investors to boost steel production and expedite iron ore mining projects that are set to commence operations this year in order to address the imbalance in the local steel market.
The country imported 7.92 million tons of steel worth US$6.57 billion last year, including steel for construction and auto industries, according to the General Statistics Office.
The office said steel imports dropped nearly 2 percent in volume but increased 28.56 percent in value year-on-year.
The industry faced a minus growth last year as it consumed and exported about 4.45 million tons, a drop of 300,000 tons compared to 2007, according to the Vietnam Steel Association.
The association said the drop was due to a decline in local demand, mainly from construction firms hit seriously by the global economic downturn.
It said the demand would be affected by a hike in value added tax which took effect on January 1, 2009.
The tax has increased to 10 from 5 percent, raising retail steel prices by more than VND500,000 or $28.57 a ton, according to the association which asked the government to defer the hike until after July.
Minh Quang
thanhnien
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