Vietnam Steel Industry Faces Trade Barriers and CBAM Challenges
Vietnam's crude steel production is projected to reach 27 million mt by 2026, a 10% increase year on year. However, the industry is pressured by trade barriers and the Carbon Border Adjustment Mechanism (CBAM), which could impact export competitiveness.
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The Vietnam Steel Association (VSA) reports that crude steel production in Vietnam reached an estimated 14.8 million mt in H1 2026, up 21.2% year on year, with consumption at approximately 17.9 million mt, reflecting a solid growth foundation. However, challenges arise from trade barriers and environmental regulations, notably the EU's CBAM.
Exports declined to 1.79 million mt, down 4.8% year on year. VNSteel aims to enhance its position by investing in higher-value products, targeting strategic sectors, and improving operational efficiency.
VSA forecasts steel production to reach 27 million mt and domestic consumption to hit 28 million mt by 2026. The government will continue to review regulations to support trade and production efficiencies.
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