ON APPROVAL OF SCHEME FOR DEVELOPMENT OF STEEL INDUSTRY TILL 2030, ORIENTATION TOWARD 2050

Article 1. The Scheme for development of steel industry till 2030, orientation toward 2050 (hereinafter referred to as “The Scheme" is hereby approved with the following contents:

Closely follow the Directives and Resolutions of the Communist Party of Vietnam (CPV), socio-economic development strategies, and relevant sectoral development strategies to develop the steel industry as one of the foundation industries; develop it independently and autonomously, making a crucial contribution to the country’s industrialization and modernization while ensuring national defense and security.

Develop the steel industry with a suitable and balanced structure both in breadth and depth, focusing on in-depth development, improving productivity, quality, efficiency, and competitiveness; maximizing and effectively using domestic raw materials; meeting domestic and export needs; taking advantage of international opportunities and strengths; proactively participating deeply in the global production value chain; and gradually improving the productivity, quality, efficiency, and competitiveness of the steel industry in the world market.

3) Fully understand, respect, and properly apply objective laws of the market economy, suitable to the country’s development conditions; develop the steel industry based on effective mobilization of domestic and international resources from all economic sectors, prioritizing the development of the private sector.

4) Develop the steel industry in accordance with specific conditions of each region and administrative division to focus resources effectively; implementation must be thorough and decisive with the participation of the entire political system, central and local governments, and enterprises.

Develop the steel industry based on investment, modernization of technology and equipment that is environmentally friendly and adaptable to climate change; ensure small production facilities satisfy technological and environmental requirements with an appropriate transition roadmap; use natural resources efficiently, aiming towards green growth and sustainable development.

1. Overall objectives

Develop the steel industry with focus on high-quality steel products that satisfy national and international standards; diversify products; gradually transition to high value-added and environmentally friendly products; maximize the use of fuel resources; meet domestic demand; rapidly increase exports, competitiveness, and deepen participation in the global value chain; restructure product structure to gradually replace imported steel, especially alloy steel, tool steel, and special steel products for domestic manufacturing sectors.

2. Specific objectives

2.1. By 2030

- Crude steel production grows at an average of 7,0%–8,0% per year, reaching about 25–26 million tonnes/year.

- Finished steel production grows at 5,5%–6,5% per year, reaching about 32–33 million tonnes/year.

- Average steel consumption reaches 270–280 kg/person/year.

- Steel products basically satisfy around 80%–85% of domestic demand, with a gradual increase in export share.

- The proportion of high value-added steel products gradually increases: alloy steel, stainless steel, and high-quality steel serving manufacturing sectors, production, transportation means (automobiles, shipbuilding, railways), and energy.

2.2. By 2035

- Crude steel production grows at an average of 6,0%–7,0% per year, reaching about 33–36 million tonnes/year.

- Finished steel production grows at 4,5%–5,5% per year, reaching about 40–43 million tonnes/year.

- Average steel consumption reaches 340–360 kg/person/year.

- Steel products basically satisfy around 85%–90% of domestic demand, with a gradual increase in export share.

- The proportion of high value-added steel products continues to increase: alloy steel, stainless steel, and high-quality steel serving manufacturing sectors, production, transportation means (automobiles, shipbuilding, railways), power, and defense and security manufacturing steel.

2.3. Orientation toward 2050

- Crude steel production grows at an average of 4,0%–4,5% per year, reaching about 65–70 million tonnes/year.

- Finished steel production grows at 3,5%–4,0% per year, reaching about 75–80 million tonnes/year.

- Average steel consumption reaches 570–650 kg/person/year.

- Steel products basically satisfy maximum domestic demand, with a gradual increase in export share.

- Steel industry products increasingly participate deeply in the supply chain of the global steel industry.

1. General orientation

- Focus on developing steel products with competitive advantages and high domestic demand that are currently not produced domestically; focus on investment in advanced, modern technologies for production of green steel, alloy steel, steel for manufacturing industries, and highly competitive products capable of participating in the global value chain. Simultaneously, rapidly increase the scientific and technological content to boost productivity and product quality to meet international standards.

- Rationally allocate steel industry production spaces based on geographical advantages; focus investments in large-scale projects in administrative divisions with deep-water ports to maximize spatial, infrastructural advantages, places with renewable energy sources, and production resources; intensify value chain linkages from research and raw material supply to production and product consumption.

2. Specific orientation

2.1. Priority products

- Effectively balance supply and demand in steel production; encourage and promote high value-added export steel products; pay special attention to the shift from long steel value chain to flat steel value chain to proactively secure raw materials for the domestic manufacturing industry: alloy steel, machinery manufacturing steel, stainless steel, shaped steel, railway steel, etc., and ensure hot-rolled coil (HRC) supply for domestic and export markets. For long steel, focus on developing high-quality domestic products not yet produced.

- Apply digital technologies in production processes to improve efficiency and product quality; optimize production and management processes while completing national standards and national technical regulations on steel; improve efforts to combat trade fraud, evasion of import duties, safeguard duties, and anti-dumping taxes.

- Intensify support for research and development of new steel products for hi-tech industries, implement investment incentives and support policies to encourage enterprises with production potential to manufacture high-quality steel, alloy steel, and tool steel that replace imports and meet domestic manufacturing needs.

- Prioritize development of the following steel products:

Long steel: prestressed reinforced concrete bars, steel bars, wires, coils, reinforcing steel, shaped steel, shipbuilding steel, railway steel, industrial steel for wind power generation, and industrial steel for defense and security.

+ Flat steel: Alloy steel, machine steel, tool steel, and steel plates used in manufacturing industries and the production of transport vehicles.

2.2. Material sources

- Efficiently use domestic iron ore resources; develop a comprehensive plan to supply iron ore from domestic and imported sources to blast cast iron and direct reduced iron (DRI) production plants, and from scrap steel (imported) for steelmaking and cast iron production. Export of iron ore and natural minerals is prohibited to ensure stable input supply, increase autonomy, and avoid adverse impacts on domestic steel production.

- Diversify sources of iron ore and scrap steel; encourage investment to maximize domestic iron ore extraction and develop additional supply sources, including imports; simultaneously seek partnerships and establish cooperative relationships with reputable international iron ore and scrap suppliers.

- Promote industrial-scale collection, dismantling, and processing of end-of-life steel products to supply recycled scrap steel and increase domestic raw material supply.

- Intensify cooperation with international partners with strong financial and technological capacities in mineral extraction and processing, especially iron ore extraction, to share experience, technology, and resources, thereby creating sustainable development for steel industry of Vietnam.

2.3. Energy resources for production

- To ensure energy security and contribute to greenhouse gas emission reductions (Net Zero by 2050) and intensify the use of renewable energy and derivatives such as hydrogen (H2) and ammonia (NH3) in steel production through new steel projects, steel projects with approved investment guidelines till 2035 must be accompanied by renewable energy development projects or direct power purchase agreements at certain ratios as prescribed by law.

- Encourage technological changes in steel production such as waste heat recovery and water recirculation in the production process following circular economy principles to optimize energy use and save resources during production.

Development of steel enterprises

- Develop steel enterprises towards modern and sustainable direction, utilizing new technologies, advanced machinery, producing high-quality, diversified products; reducing greenhouse gas emissions to enhance competitiveness in international integration. Prioritize large-scale concentrated steel projects near coastal deep-water port areas; review and ensure small production facilities meet technological and environmental standards with suitable transformation roadmaps. Ensure small-scale production using outdated, inefficient, and polluting technology that fails to satisfy technological and environmental standards must undergo technological upgrades to satisfy such standards.

- Establish a support enterprise system for the steel industry, including provision and supply of raw materials, fuels, infrastructure, services, and auxiliary materials to ensure timely support for domestic steel production and consumption.

- Attract large enterprises to invest in the steel industry by creating a convenient, stable, transparent, and fair investment environment with open mechanisms when assigning large-scale mineral mines and renewable energy projects; establish appropriate technical barriers and attractive mechanisms to attract investors to large-scale steel production projects and metallurgical complexes, focusing on steels for hi-tech mechanical manufacturing to fulfill basic steel demand in promoting domestic economic development.

2.5. Steel market

a) Domestic market

- Balance domestic steel supply and demand, ensure sufficient steel supply for the market; promote market development to promptly and fully meet the steel needs of other industries.

- Study and develop nationwide distribution system and centers, including developing domestic and international steel trading platforms, applying modern digital technology and smart management models to develop a healthy steel market.

- Intensify updating of market information and data combined with improve accurate forecasting to proactively manage production. Encourage enterprises to deploy online marketing channels via the internet and social networks to boost product consumption.

b) Export and import market

- Develop strategies for steel product consumption markets, combined with timely and comprehensive market data collection, analysis, forecasting, and assessment; regularly update policies and track domestic and international market fluctuations to proactively manage production and balance supply and demand in domestic and international markets, ensuring high effectiveness and added value when participating in the global steel supply chain.

- Intensify trade remedies when there are signs of dumping and subsidies on imports to protect domestic production, in accordance with international practices.

- Focus on developing some national brands of key domestic steel products to create reputation and gradually increase Vietnam’s share on international steel market through product quality, services, and competitive pricing.

- Issue national technical regulations and standards, and establish mechanisms to intensify inspection and control at the source of imports to ensure steel quality.

- Seek and expand new export markets alongside strengthening presence in traditional export markets; pay special attention to and comply with international trade regulations and risk management to avoid legal risks and increase trade reputation for domestic steel products.

2.6. Technology

- Gradually increase investment in advanced, modern production technologies that reduce energy consumption; transition to cleaner steel production using renewable energy, hydrogen (H2), and ammonia (NH3) derivatives to meet Net Zero objective by 2050.

- Research and complete waste and emission treatment technologies aligned with circular economy models; implement smart production action plans in steel industry to increase product efficiency and added value.

- Develop a roadmap for applying advanced steel production technologies using BOF/BF and DRI/EAF processes to reduce CO2 emissions meeting international carbon standards, supporting deeper integration of steel products into global steel supply chains.

- Research and establish a big data center for the steel industry to improve production, management, and consumption capabilities.

2.7. Space distribution

- Establish major steel production hubs in Central and Southern Vietnam in key economic zones such as Dung Quat - Quang Ngai, Vung Ang - Ha Tinh, Nghi Son - Thanh Hoa, Ba Ria–Vung Tau Industrial Park - Ho Chi Minh City, etc. linked with deep-water ports, renewable energy sources, sea/rail/road transport routes, and large power plants.  Encourage investment in steel production projects (including investment in new projects and expansions) using electric furnaces in the South and Central regions; new steel projects in the North must ensure their own energy supply.

- Develop special economic zones or comprehensive industrial development areas linking steel production with other industries such as automobile assembly, shipbuilding, machinery manufacturing, and other metal processing and fabrication industries.

1. Mechanisms and policies

- Continue reviewing, researching, amending, and perfecting mechanisms and policies related to production and trade of steel industry products, with a focus on issues such as investment incentives, finance, science and technology, and regulations on the required ratio of domestic steel use in strategic infrastructure projects funded by the State budget.

- Review and supplement national standards and national technical regulations, combined with drafting regulations on quality management for domestically produced and imported steel products; issue regulations on technology and equipment in steel industry to upgrade or replace small-scale, outdated, inefficient production facilities; develop advanced and modern production technologies; intensify support and dissemination of standards and international regulations related to steel production and distribution.

- Encourage exploration and extraction of iron ore; promptly resolve difficulties in licensing the exploration and extraction to speed up domestic iron ore mine extraction.  Develop policies to encourage establishment of e-commerce trading platforms for raw materials and steel products.

- Review and develop a support mechanism to promote investment in raw material procurement based on a modern, environmentally friendly integrated model and metal scrap ecosystem, along with a set of rules, procedures, and operating standards. Develop incentive policies for establishment of e-commerce trading platforms for raw materials and steel products.

- Intensify the application of trade remedies against imported steel products to protect the domestic market; provide early warnings on cases of trade remedies involving imported steel to avoid export risks.

2. Product market

- Promote the role of branches to improve business autonomy; invest in, upgrade and modernize trade infrastructure, connect manufacturers with distributors via centralized product suppliers, and ensure warehouses satisfy storage standards and are accessible to consumers.

- Intensify participation in domestic and international trade fairs for trade promotion, including g creating advertising campaigns and media events to introduce enterprises' products at markets, bringing Vietnamese steel brands and labels to domestic and international consumers.

3. Science and technology

- Research and apply advanced, modern technologies; develop new raw materials to create differentiated products for steel processing and mechanical manufacturing industries; support upgrading centers for inspection, quality control, research for new products, product quality and legal inspection, and overcoming technical and trade barriers..

- Encourage enterprises to invest in modern, energy-efficient, low-carbon technologies; apply carbon capture in steelmaking; implement molten oxide electrolysis technology in steelmaking; replace coke with hydrogen for “green” steelmaking; apply IoT, AI, and automation in steel production to boost efficiency, productivity, and reduce environmental impact, contributing to smart production action plans in the steel industry.

- Select production technologies suitable to development stages for new investment projects. Decisively prohibit import of obsolete and secondhand technologies and equipment for domestic steel production. Promote advanced science and technology applications to improve operational efficiency and industry value.

- Consistently and synchronously implement the viewpoints of improving production technology through technology transfer, maximizing modern technology transfer from foreign partners for the development of the steel industry with a focus on hi-tech, environmentally friendly, energy- and resource-saving technologies. This should be considered a prerequisite for deciding on investment projects and cooperation contracts for domestic steel production.

4. Human resources

- Intensify cooperation and connection with reputable domestic and international training institutions to develop human resources; increase the rate of high-quality work force meeting production standards. Recruit high-quality scientific cadres, good managers, and skilled technical workers from vocational schools and universities to meet the demand for high-quality labor for the development of the steel industry in the new phase.

- Steel manufacturers and enterprises shall develop training and retraining programs and plans for their staff and skilled workers. Training should be conducted with a focus on both expanding in scope to meet quantitative demands and developing specialized staff and leading scientific researchers to prepare the workforce for the industry.

- Use investment projects to train and adopt modern, advanced technologies. Focus on vocational training to build a workforce capable of proficiently operating technical equipment and technologies applied in production.

5. Environmental protection

- The development of the steel industry must closely link to environmental protection. Steel production projects must comply strictly with environmental regulations; prioritize investment in projects with advanced, low-pollution technologies; improve project appraisal quality with thorough assessment of production technology, emissions, wastewater, solid and hazardous waste; establish specific regulations on environmental monitoring standards for steel production projects.

- Perform effective state management of environment, regularly monitor emissions from extraction, production, processing and fabrication; ensure that emission control and treatment meet applicable environmental technical standards; conduct periodic environmental assessments of production facilities, and promptly take action against enterprises that violate environmental regulations; conduct greenhouse gas inventories and reduce greenhouse gas emissions for facilities with annual emissions of 3000 tonnes of CO_{2 equivalent} or more.

- Increase investment in equipment for continuous automatic and periodic monitoring, emission and ambient air quality management; develop air quality forecasting tools/models; develop and implement technology renovation roadmaps toward eco-friendly production, proper, economical use of resources such as raw materials, fuels, and water; minimize emissions and hazardous waste discharged to the environment.

- Increase investment in advanced steel production technology to protect the environment; use circular and reusable water resource technologies in steel production and processing to meet the requirements for preventing water degradation, depletion, and pollution as specified in the Law on Water Resources.

6. Specific solutions by steel products

- Continue investing in technology and equipment to raise capacity and quality of steel products that support economic development, including construction steel, alloy steel, machinery manufacturing steel, shaped steel, metal-coated and color-coated sheet steel, steel pipes, and hot-rolled steel to stabilize domestic consumption and exports.

- Develop domestic technology to manufacture high-strength steel plates, prestressed steel, steel for prestressed concrete, corrosion-resistant stainless steel for marine and island construction, and ultra-light steel for transportation equipment; cold-rolled light steel and shipbuilding steel.

- Research production of steel materials for energy infrastructure construction, railway high-speed rails, cast pipes for liquefied gas transportation, welded-free steel pipes for shipbuilding, windmill towers, and steel fabricated in defense and security.

1. Ministry of Industry and Trade shall

- Take charge and cooperate with other Ministries, central authorities, People's Committees of provinces/cities, ministerial agencies, and relevant administrative divisions in implementing this Strategy.

- Cooperate with relevant Ministries and agencies in reviewing, amending, and developing national standards, national technical regulations, and develop laws on management in production, import, use, storage, and transport of steel, including carbon capture standards compatible with standards of developed countries.

- Take charge and cooperate with relevant Ministries and agencies in reviewing, supplementing, and completing legislative documents applicable to the steel industry; issuing regulations on-site inspections; trade remedies to protect domestic steel production.

- Take charge and cooperate with relevant agencies in developing the steel industry development roadmap (ROADMAP), including technology transition, industry scale, and steel product roadmap.

- Monitor, inspect, supervise, conduct preliminary review, assessment of annual and 5-year performance; submit consolidated reports to the Prime Minister on proposals, petitions, arising issues, obstacles, and propose solutions to remove difficulties by authority; adjust the strategy as necessary based on practice.

2. Ministry of Science and Technology shall

Develop national science and technology programs to promote research on the production, storage, distribution, and use of steel with a focus on production to fully meet steel production needs for economic development.

3. Ministry of Finance shall

- Take charge and cooperate with other relevant Ministries in reviewing and formulating preferential or favorable incentives, financial and credit support for steel production projects, especially for high-quality steel not yet produced domestically, steel for national defense and security industry, and steel for key national projects in transportation and energy.

- Research and propose to competent authorities regulations on investment guidelines for steel production projects, ensuring compliance with planning and Vietnamese laws; Create favorable mechanisms to ensure the efficiency, effectiveness, and effectiveness of investment projects in the production of green steel and special steels to serve economic development.

- Take charge and cooperate with relevant agencies in instructing and providing guidance for state-owned enterprises, continue to promote industry restructuring, innovate state-owned enterprises, preserve investments, and comply with laws on investment, management, and use of state capital at enterprises.

4. Ministry of Construction shall

- Take charge and cooperate with Ministry of Industry and Trade, Ministry of Science and Technology in formulating, reviewing, and amending national standards and national technical regulations on construction steel.

- Cooperate with Ministry of Industry and Trade and other agencies in quality management and construction steel provision. Provide guidance on the use of steel industry waste as construction materials and for land filling in a scientific and environmentally safe manner.

5. The Ministry of Agriculture and Environment shall

- Take charge, research and propose to competent authorities preferential land policies for key steel production and processing projects in accordance with the law on minerals. Develop a state management plan for the industry in implementing the steel industry development strategy, ensuring compliance with national planning and strategies as prescribed by law.

- Take charge and cooperate with Ministries, central authorities, and agencies in monitoring compliance with environmental and occupational health laws by steel production projects.  

6. -Other Ministries, ministerial agencies, and Government agencies shall

Take charge and cooperate with the Ministry of Industry and Trade and relevant agencies, within their jurisdiction and in accordance with law, in promptly directing and implementing the viewpoints, objectives, orientations, and solutions of this strategy; proactively propose mechanisms, policies, and solutions to address difficulties for effective implementation of related contents of this Strategy.

7. People's Committees of provinces/cities shall

Cooperate with relevant Ministries and agencies in deciding investors for steel industry development projects, allocating appropriate land banks for production and distribution facilities according to plans and laws. Formulate plans to implement the steel industry development strategy suitable for each administrative division.

8. Associations and enterprises

Vietnam Steel Association and Associations, Trade Associations

Associations, Trade Associations shall

- Act as a bridge and representative for steel manufacturers and enterprises with state regulatory authorities.

- Intensify communication, create opportunities to promote trade and investment cooperation between domestic and international steel enterprises.

- Proactively propose and participate in submitting proposals to relevant ministries and central authorities in advising and providing feedback on policies for the development of the steel industry; cooperate in resolving difficulties arising in the production and business process, especially in the process of international integration.

8.2. Steel enterprises shall

- Be responsible for implementing this Strategy; develop projects and execute production plans on schedule, compatible with enterprise development conditions; Effectively perform roles in production, business, and promptly supply steel for domestic consumption and export.

- Proactively formulate and adjust enterprise development strategies and production plans in line with general industry development; enhance market research to consider investing in new steel production projects, making positive contribution to steel industry growth.

- Within the jurisdiction specified in the Law on Enterprises and other laws, elaborate the tasks and solutions of this Strategy.

Article 3. This Decision comes into force from the date on which it is signed.

Article 4. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of People’s Committees of provinces/cities, and relevant agencies are responsible for the implementation of this Decision./.