VietNamNet Bridge – Experts trust that existent steel mills, and a Formosa mega steel complex, are ‘more than enough’ for Vietnam.
Economists, residents and environmentalists have uttered their regard about a chartering of another steel project, a Hoa Sen Ca Na in Ninh Thuan province, capitalized during $10.6 billion, or VND230 trillion.
“Vietnam should not make a same mistake done by other countries,” pronounced Nguyen Mai, chair of a Vietnam Association of Foreign Invested Enterprises (VAFIE).
China, for example, is confronting a critical steel oversupply. In a final 3 years, it has close down a array of steel mills with ability of reduction than 2 million tons.
The consultant stressed that it is required to consider how distant Vietnam should rise a steel industry.
“The steel supply in a universe is abundant and it can be bought easily. Why doesn’t Vietnam accumulate strength on creation high-quality alloys and nano materials and afterwards offered a products to buy steel?” Mai said.
An analyst, pity a same perspective with Mai, pronounced as Vietnam is behind other countries in building industries, it can equivocate false stairs taken by a countries.
He thinks that Vietnam should concentration on utilizing modernized technologies to make high-quality alloys that can move value 5-7 times aloft than a distinction brought by steel production.
“Vietnam, of course, has to say simple industries, though we need to rise a industries during certain levels,” he said.
Regarding a Hoa Sen Ca Na project, he believes that a financier would have to import iron ore, coke spark and all other submit materials indispensable to make steel domestically.
Formosa steel formidable in Ha Tinh province, once operational, will concentration on creation hurl steel and high-quality steel and partially prove a domestic direct (Vietnam has to import $5-6 billion value of high-quality steel each year).
“If we have one Formosa, that can furnish high-quality steel, because do we still need another plan – Hoa Sen Ca Na, that imports materials to make finished products?” Mai said.
Meanwhile, Hoa Sen Group, a financier of Hoa Sen Ca Na, still insists on pouring income into a steel mill.
The steel prolongation ability and expenditure in Vietnam are still during a low turn compared with other countries. Hoa Sen cited a news of a World Steel Association as stating that of a 1.62 billion tons of steel constructed globally in 2015, Vietnam topsy-turvy out 15 million tons, or only one percent.
In ASEAN market, a direct increases by 5.5 percent per annum, while a prolongation ability increases by 2.7 percent.
Thanh Mai
Article source: http://english.vietnamnet.vn/fms/business/163183/no-more-steel-projects–experts-recommend.html