General Director of Hoa Phat Group Nguyen Viet Thang assessed that the US imposition of reciprocal tariffs does not directly impact the Vietnamese steel industry.

Responding to Global Change: Stability and Flexibility

In the context of the global economy facing major challenges from geopolitical tensions and increasingly strict tariff policies, the Vietnamese steel industry has demonstrated its ability to respond flexibly and persistently. According to Mr. Nguyen Viet Thang, General Director of Hoa Phat Group, the US imposition of reciprocal tariffs does not directly impact the Vietnamese steel industry, because businesses like Hoa Phat have been subject to Section 232 tariffs for several years. While allied countries such as Japan and South Korea have only recently been subject to Section 232 tariffs, the Vietnamese steel industry is exempt from additional tariff barriers, helping to maintain stability in production and export.

However, Mr. Thang noted that tariff policies could have an indirect impact through a slowdown in global economic growth, thereby reducing steel demand in the domestic market. To mitigate the risks, he expressed confidence in the Government’s solutions to maintain economic growth at around 8% this year and 10% from 2026. These targets create favorable conditions for businesses like Hoa Phat to ensure stable steel consumption, playing a fundamental role in infrastructure and industrial projects.

At the same time, in an economy with a large openness like Vietnam, exchange rate management is an important factor. Mr. Thang highly appreciated the State Bank's efforts in stabilizing the exchange rate, helping to reduce fluctuations and supporting steel enterprises, especially those with a large proportion of imported raw materials such as Hoa Phat, which depend on international supplies for part of their production. These factors, from tariff management to macroeconomic policies, show that the Vietnamese steel industry is maintaining a solid position, ready to overcome challenges to take advantage of opportunities in the new period.

Breakthrough opportunities: Public investment and market diversification

The current period brings many prospects for the Vietnamese steel industry, thanks to policies promoting public investment and a series of key national projects, from the North-South high-speed railway to nuclear power projects. According to Mr. Nguyen Viet Thang, the Government's economic growth target of 8% this year and 10% from 2026 is a great driving force for the steel industry to make a breakthrough. With the increasing demand for infrastructure construction and large-scale projects, the steel industry is expected to maintain strong growth momentum, playing the role of bread of modern industry. Hoa Phat aims to grow 15% per year in the next 5 years, focusing on maintaining the proportion of the domestic market and developing high-quality steel products for the processing and manufacturing industries, meeting the requirements of strategic projects.

To take advantage of the opportunity, Hoa Phat has promoted the diversification of export markets, with a presence in about 40 countries with a reasonable distribution ratio to avoid dependence on a specific market. Mr. Thang emphasized that this strategy helps minimize risks from trade defense barriers, ensure stability in export activities, and enhance the position of Vietnamese steel in the international arena. Domestically, the Group focuses on key projects, such as the production of steel rails for the North-South high-speed railway, steel for the shipbuilding industry, and oil and gas. These products not only meet the growing needs of strategic industries but also contribute to changing the economic structure of Vietnam towards industrialization and modernization. As the largest private steel producer in Vietnam and Southeast Asia, ranked 30th in the world, Hoa Phat is leading in providing materials for infrastructure projects, affirming the position of the steel industry in the national economic development.

Sustainable Strategy: Advanced Technology and Green Development

In the global trend of prioritizing green and sustainable development, the Vietnamese steel industry, with Hoa Phat as the leader, is transforming strongly to meet environmental standards and advanced technology. Mr. Nguyen Viet Thang affirmed that Hoa Phat is committed to implementing the roadmap to reduce emissions according to the Government's Net Zero target by 2050 at COP26.

Currently, the group spends about 30% of its total investment capital on environmental protection solutions, implementing emission reduction projects announced in the upcoming ESG report. These efforts not only help Hoa Phat meet international requirements but also enhance its reputation and enhance its competitiveness in the global market, especially in the context of trade partners increasingly paying attention to sustainability factors.

In terms of technology, Hoa Phat continuously updates and applies the most advanced steel technologies, equivalent to the standards of G7 countries, through close cooperation with the world's leading equipment suppliers. Mr. Thang emphasized that mastering high technology is the key factor in producing quality steel products, such as railway rail steel and steel for the oil and gas industry, meeting the needs of key projects such as high-speed railways and nuclear power. To support this strategy, the group invests an average of more than 1 billion USD per year in new projects, committed to maintaining 15% growth per year, contributing to the country's economic development in the new era.

A major challenge for the Vietnamese industry, according to Mr. Thang, is the dependence on imported raw materials and an unstable consumption market. To overcome this, Hoa Phat is striving to become self-sufficient in raw materials, thereby supporting domestic enterprises and building a sustainable steel market. The government has identified private enterprises as an important economic sector, and the steel industry is an indispensable foundation for a modern economy. With its position among the top enterprises contributing to the state budget, Hoa Phat is confident in meeting the steel demand for strategic projects, from high-speed railways to nuclear power, contributing to changing the economic structure. These strategies, from high technology, green development, to self-sufficiency in raw materials, are taking the Vietnamese steel industry forward, shaping a new era of sustainable growth and international integration.

Source: https://thoibaonganhang.vn/nganh-thep-viet-nam-be-do-cong-nghiep-tien-phong-ky-nguyen-moi-163538.html