Copying and distributing are prohibited without permission of the publisher
SPOTLIGHT: Vietnam has 'too many steel plants'
February 22, 2012 - 04:20 GMT
Location:
Hanoi
KEYWORDS:
Vietnam Steel
Vietnam’s government should encourage steel sector consolidation by imposing tougher planning controls and policies to encourage mergers, senior officials from the country’s steel industry told Metal Bulletin.
Oversupply of some steel products threatens to become a bigger problem in coming years as more projects come on stream, officials from Vietnam Steel and the Vietnam Steel Assn (VSA) said during an interview in Hanoi.
"Vietnam is facing the same problem as China. There are too many small steel plants operating separately," Nghiem Xuan Da, vice president of Vietnam Steel, the country’s biggest steelmaker, said. "Being small and fragmented, only a few [mills] can satisfy economies of scale to be able to operate efficiently.”
The central government has taken some preventative measures to clamp down on overexpansion, but more action is...
All material subject to strictly enforced copyright laws. ©
Euromoney Institutional Investor PLC.
Please log in using your online subscriber details.
Your username will be your registered email address with Metal Bulletin.
If you aren't a subscriber yet, feel free to take a seven day free trial, or subscribe using the instructions below.
Subscribe
A standard subscription include one year's worth of news and prices. You can also upgrade to the full archive and benefit from more than 13 years of intelligence. Start your subscription today.
Subscribe
Free trial
Taking a free trial will give you open access to Metal Bulletin online news, prices, archived content and email alert service for the next seven days. Start your free trial today.
Free trial