Vietnam's steel industry is under pressure as foreign imports, particularly from China, flood the domestic market, raising concerns about market saturation. Industry experts warned that if no action is taken, local producers could face significant challenges.

The Vietnam Steel Association (VSA) reported that the country's steel production capacity stands at 23 million tons of crude steel annually. However, recent customs data revealed a surge in hot-rolled coil (HRC) imports, with China accounting for 73% of Vietnam's HRC imports in the first four months of 2024. This sharp increase has slashed the market share of domestic giants like Formosa and Hoa Phat, dropping from 45% in 2021 to just 30% in 2023.

In response, the Ministry of Industry and Trade is investigating anti-dumping measures on imports from China, India, and South Korea. The government is also developing a long-term strategy to ensure sustainable growth for Vietnam's steel industry through 2050.