Vietnam's steel sector posted double-digit growths in output and sales in the first half of 2026, though export performance stayed muted, underscoring domestic consumption's growing weight amid expanding public investment and building activity.

World Steel Association data puts Vietnam's H1 2026 crude steel output at roughly 15.2 million tonnes, a 26.9% year-on-year increase that keeps the nation inside the global top 10 crude steel producer rankings.

Figures from the Vietnam Steel Association showed crude steel production hit 17.9 million tonnes in the first seven months, climbing 28% on the year. This comfortably outstripped the 12% expansion seen across manufacturing-processing industries and the 11.4% growth for the broader industrial segment. Finished steel output stood at about 21.4 million tonnes (+15.4%), while sales advanced 15.6% to 21.2 million tonnes.

Construction steel and hot-rolled coil (HRC) stood out as the best-performing product lines. HRC sales jumped 44.3%. Construction steel remained the sector's largest product category at almost 9 million tonnes, up 19.6%. Against sharp overall sales growth, total steel exports edged down 1.4%, signaling domestic end users are accounting for a larger share of volume absorption.

Market outlook points to further demand support in the remainder of 2026, driven by speeding-up public capital spending and a construction sector rebound. Vietcombank Securities flags construction as a core economic growth pillar, as large-scale national infrastructure schemes move forward. As a key construction input, steel is set for positive medium-term demand expansion.

Vietnam's National Assembly has signed off on a VND 8.2 quadrillion ($314.51 billion) medium-term public investment envelope covering 2026-30, with an estimated 43% earmarked for infrastructure across ongoing and new-build projects.

Residential building forms an extra demand source: the government has revised its 2030 social housing target to nearly 1.1 million housing units, with project delivery expected to pick up from now into next year.