Vietnam steel demand slumps as construction stumbles

Crackdown on corruption linked to real estate hammers domestic steelmakers

20230123 vietnam contruction site

Vietnam is the largest steel producer among the 10 ASEAN members, and sluggish demand at home puts a damper on the country's overall economy. © Reuters

TOMOYA ONISHI, Nikkei staff writer

HANOI -- Vietnam's steel industry is going through a rough stretch as tighter regulations related to real estate are choking demand for new buildings.

Hoa Phat Group, the largest steelmaker in Southeast Asia, suspended operation of four blast furnaces in Vietnam in autumn 2022. Other Vietnamese steelmakers using electric furnaces have also been forced to cut production sharply.

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