Vietnam's crude steel production rose 26.9% year on year to 15.18 million metric tons in the first half of 2026, driven by infrastructure spending and a recovering property market. The country retained its spot among the world's top 10 steel producers, but the sector faces growing trade deficits and stricter carbon regulations, including the EU's Carbon Border Adjustment Mechanism (CBAM). The Vietnam Steel Association reported a trade deficit of 2.3 million metric tons, worth $1.9 billion, as imports outpaced exports. Coated and cold-rolled steel segments saw declines due to weaker global demand and trade remedy measures. Experts say investment in green steel technology and higher localization of raw materials are critical for Vietnam to stay competitive in international markets. CBAM and other sustainability requirements are pushing Vietnamese steelmakers to cut emissions and adopt cleaner production methods. The industry's ability to shift toward low-carbon steel will determine its long-term access to major markets like the EU and the US.
