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Vietnam's steel industry revenue in the first half of 2023 may decrease by up to 80%

Weak steel demand makes the steel industry's revenue in the first half of 2023 estimated to decrease by 70-80% compared to the same period in 2022. Faced with bad market developments, the Vietnam Steel Association proposed to reduce the value-added tax from 10 % down to 8%, and at the same time consider preferential interest rates for businesses.

According to data from the Vietnam Steel Association (VSA), in the first 5 months of the year, steel production reached 14.1 million tons, down 22% over the same period in 2022. Steel sales reached 12.9 million tons, down 19 %, of which steel exports reached more than 3 million tons, up 2% over the same period in 2022.

In the domestic market, the price of raw materials tended to inched slightly at the end of May and continued into this June. However, due to weak domestic demand, competitive factories continuously adjusted their selling prices to decrease gradually and only had a price reduction in mid-June.

The real estate market has not had a positive signal again, not many new social housing projects have been implemented, along with the banking system tightening credit, causing construction steel consumption to be low compared to the previous year. expected in the construction season after Tet.

Particularly in May, the units adjusted the selling price of construction steel 5 times with the frequency of reduction once a week, with reductions of 100,000 -200,000 VND/ton/time depending on the type of product, but the consumption of The market is still very weak.

During the price reduction on May 29, many businesses simultaneously provided price guarantees for goods and continued to guarantee goods sold in the civil market. This shows that the bottom-seeking trend of construction steel prices is likely to continue shortly.

Revenue of the whole steel industry in the first half of 2023 is estimated to decrease by 70-80% compared to the same period in 2022, marking a long and continuous decline period.

Facing bad market movements, VSA proposed the Ministry of Finance adjust the value-added tax (VAT) for steel products from 10% to 8%. In addition, consider lowering interest rates and giving priority to loans with preferential interest rates for manufacturing enterprises, according to Urban Economics newspaper.

VSA recommends that the State agency continue to encourage steel enterprises to export construction steel, cold rolled steel, metalized and color-coated corrugated iron, and welded steel pipes that have met the steel demand in the world. water...

(Doanh nghiep & Kinh doanh)


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