The Vietnam Steel Association (VSA) said Vietnam's crude steel production reached about 14.8 million tons in the first half of the year, up 21.2 percent year-on-year, while steel consumption rose 13.1 percent to about 17.9 million tons, providing a solid basis for further growth, according to Vietnamese media reports.
Despite these positive indicators, the industry continues to face significant challenges associated with growing trade. barriers, tightening environmental regulations and continued volatility in global markets.
Trade barriers and CBAM increase pressure on exporters
Steel exports have remained under pressure since the start of the year as global excess capacity continues to fuel protectionist measures in major markets. The US has imposed tariffs of up to 50 percent on certain steel products under Section 232, while Vietnamese steel products continue to face trade protection investigations and stricter origin, quality and technical requirements. As a result, Vietnamese manufacturers are under increasing pressure to tighten compliance procedures, improve supply chain management and meet increasingly stringent customer demands. At the same time, commitments to reduce greenhouse gas emissions and the Carbon Border Management Mechanism (CBAM) are becoming increasingly important to maintain access to key export markets.
The pressure is particularly significant as steel is one of the sectors covered by the EU CBAM. Failure to upgrade production technology, reduce emissions and ensure transparent carbon reporting could weaken the competitiveness of Vietnam's steel exports in traditional high-value markets. In addition, the industry remains subject to price fluctuations for imported raw materials, including iron ore and scrap, while volatility in freight rates, exchange rates and geopolitical events continue to create uncertainty around production costs and profitability.
VNSteel is focused on producing higher value-added products
According to Pham Cong Tho, deputy general director of Vietnam Steel Corporation (VNSteel), the outlook for 2026 remains positive, supported by stable domestic demand. VNSteel is committed to achieving strong growth while maintaining its leading
