No more steel projects, experts recommendVietNamNet Bridge - Experts believe that existing steel mills, plus the Formosa mega steel complex, are ‘more than enough’ for Vietnam. Existing steel mills, plus the Formosa mega steel complex, are ‘more than enough’ for Vietnam. Economists, residents and environmentalists have voiced their concern about the licensing of another steel project, the Hoa Sen Ca Na in Ninh Thuan province, capitalized at $10.6 billion, or VND230 trillion.“Vietnam should not make the same mistake made by other countries,” said Nguyen Mai, chair of the Vietnam Association of Foreign Invested Enterprises (VAFIE).China, for example, is facing a serious steel oversupply. In the last three years, it has shut down a series of steel mills with capacity of less than 2 million tons.The expert stressed that it is necessary to assess how far Vietnam should develop the steel industry.“The steel supply in the world is plentiful and it can be bought easily. Hoa Sen cited a report of the World Steel Association as reporting that of the 1.62 billion tons of steel produced globally in 2015, Vietnam churned out 15 million tons, or just one percent.In ASEAN market, the demand increases by 5.5 percent per annum, while the production capacity increases by 2.7 percent.

Source: VietNamNet News September 11, 2016 06:56 UTC