Up to seven out of 13 members of Vietnam Steel Corporation's (VnSteel) members are operating at a loss, said corporation General Director Le Phu Hung.

VnSteel’s output fulfilled only 42.4% of the set target in the first half of this year

He said that five joint ventures involving VnSteel have also made losses, adding that in the first half of this year, VnSteel’s output fulfilled only 42.4% of the set target. Meanwhile, steel firms are facing higher production costs.

Huynh Cong Du, Director of Phu My Flat Steel Company, said prices of steel production materials and power are on the rise, meanwhile, the company is facing difficulties in finding outlets for their products which also affects their profits. Besides, local steel companies have to compete with massive imports of steel from other countries.

According to Bui Quang Chuyen, Deputy Head of the Heavy Industry Department under the Ministry of Industry and Trade,  not only steel billets and steel sheets but also corrugated iron now see inventory. The market share of local steel enterprises is on the decline, while that of joint ventures has increased.

The inventory will result in more fierce competition and even bankruptcy risk among steel firms. Therefore, steel companies have to find their own ways to boost consumption and restructure their operations.