Steel sector faces fierce competition in future

Vietnam’s steel industry will face fierce competition in the domestic market from 2010, according to the Vietnam Steel Association.

The sector will no longer enjoy preferential tax policies on account of Vietnam fully implementing its WTO commitments.

Vietnam’s steel products will continue to encounter stiff competition because of the high production costs of steel ingots. It is forecast that the prices of input materials such as ore, coal, oil and electricity will continue to increase by 2010.

Therefore, to develop the steel sector, the association has asked the Government to issue policies to provide capital and loans so a number of steel projects can be carried out.

At the same time, the Ministry of Industry and Trade and the Ministry of Planning and Investment should keep tight control of new investment projects to ensure a balance in supply and demand.

The association predicts that the production and consumption of steel-based products will have increased by 10-12 percent in 2010.

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