Vietnam Steel Fiber Market Outlook to 2028

Vietnam Steel Fiber Market Overview

The Vietnam Steel Fiber Market has experienced notable growth, this is reflected by the global steel fiber market reaching a valuation of USD 2.4 billion in 2023. This growth is primarily driven by the booming construction industry, which demands high-quality materials for infrastructure projects. The increasing use of steel fibers in applications such as concrete reinforcement, flooring, and tunnel linings is a key factor propelling market expansion.

Several key players dominate the Vietnam steel fiber market. Major companies include Bekaert, Spajic, Arcelor Mittal, Fibrometals, and Zibo Longtai Metal Products Co., Ltd. These players have established a strong presence in the market through strategic initiatives such as mergers, acquisitions, and partnerships.

In January 2022, Nippon Steel Corporation acquired G.J. Steel and G. Steel for $763 million. They aim to leverage this acquisition to create value by integrating their expertise and resources to introduce both existing and new steel fiber products and services to the market. GJ Steel Public Corporation Limited, a Thai company, manufactures and sells hot-rolled steel plates in bundles.

Ho Chi Minh City is a dominant region in the Vietnam steel fiber market. In 2023, the region's dominance is attributed to its rapid urbanization, extensive infrastructure projects, and the presence of key construction companies. Ho Chi Minh City's strategic location and economic significance make it a crucial hub for the steel fiber market.

Vietnam Steel Fiber Market Segmentations

The Vietnam Steel Fiber Market is segmented into different factor like by product, by application and by region.

By Product Type: The Vietnam Steel Fiber Market is segmented by product type into Hooked Steel Fibers, Straight Steel Fibers, Crimped Steel Fibers, and Others. In 2023, hooked steel fibers held a dominant market share due to their excellent anchorage properties, making them ideal for reinforcing concrete in critical applications such as tunnels and bridges.

By Application: The Vietnam Steel Fiber Market is segmented by application into Concrete Reinforcement, Industrial Flooring, Composite Decking, and Others. In 2023, Concrete reinforcement was dominating the Vietnam steel fiber market. The demand for steel fibers in concrete reinforcement is driven by the need for high-strength and durable structures in infrastructure projects, including bridges, tunnels, and high-rise buildings.

By Region: The Vietnam Steel Fiber Market is segmented by region into north, south, east, and west. In 2023, southern region was dominating the market with the highest market share. The region's rapid urbanization, ongoing infrastructure projects, and economic significance contribute to its leading position in the steel fiber market.

Vietnam Steel Fiber Market Competitive Landscape

Company

Establishment Year

Headquarters

Bekaert

1880

Belgium

Spajic

2002

Serbia

Arcelor Mittal

2006

Luxembourg

Fibrometals

1999

USA

Zibo Longtai Metal Products Co.

1994

China

Bekaert: In October 2021, Bekaert demonstrated its commitment to sustainability by introducing Dramix steel fibers, which are designed to lower the carbon footprint of the building sector significantly. This innovation aligns with Bekaert's broader sustainability goals, showcasing the firm's dedication to environmental responsibility and its efforts to contribute to a more sustainable construction industry.

Arcelor Mittal: Arcelor Mittal made a strategic move by agreeing to acquire a 28% stake in Vallourec for approximately $1.1 billion. This acquisition strengthens Arcelor Mittal's position in the downstream tubular market, particularly in premium segments that are increasingly focused on energy transition solutions. The investment highlights the company's strategy to expand its footprint in areas aligned with the global shift towards sustainable energy.

Vietnam Steel Fiber Market Analysis

Vietnam Steel Fiber Market Growth Drivers

Expansion of Construction Industry: In 2024, Vietnam's construction industry is set for substantial growth due to VND657 trillion ($26.8 billion) in public investments, with VND422 trillion ($17.2 billion) focused on transportation infrastructure. This surge in infrastructure projects, including highways and bridges, will drive demand for steel fibers, essential for enhancing the durability and strength of concrete structures, thereby supporting overall economic development and improved connectivity.

Sustainable Packaging Goals: The Indonesian government has set ambitious targets to reduce plastic waste, including a National Action Plan on Marine Plastic Debris that aims to reduce marine plastic debris by 70% by 2025. This plan includes strategies for waste reduction and improved waste management infrastructure. There are various initiatives promoting eco-friendly packaging solutions, such as the use of biodegradable materials and the development of sustainable packaging products by local companies.

Growth of the Retail Sector: The retail sector in Indonesia has been experiencing robust growth, supported by increasing consumer spending, urbanization, and the expansion of modern retail formats such as supermarkets, hypermarkets, and convenience stores. As retailers compete to attract and retain customers, the importance of product presentation and shelf appeal has grown significantly. High-quality, visually appealing packaging is crucial in this context, as it directly influences consumer purchasing decisions.

Vietnam Steel Fiber Market Challenges

Technological Integration: Integrating advanced technologies in the production process poses a challenge due to the high initial investment required. In 2024, many small and medium-sized enterprises (SMEs) in Vietnam may struggle to adopt these technologies, hindering their competitiveness in the market.

Competition from Alternatives: The availability of alternative reinforcement materials, such as synthetic fibers and recycled materials, is expected to rise in 2024. These alternatives, often marketed as cost-effective and eco-friendly, could compete with steel fibers, challenging their market dominance.

Vietnam Steel Fiber Market Government Initiatives

Investment in Smart Cities: The Asian Infrastructure Investment Bank (AIIB) is always ready to support Vietnam and has prepared a 5-billion-USD loan to start with supporting the countrys infrastructure development in 2024. These projects include advanced construction techniques and materials, with steel fibers being integral to creating durable and sustainable urban infrastructure.

Promotion of Sustainable Construction: In 2024, Vietnam's Ministry of Construction introduced incentives worth USD 1 billion to promote sustainable construction practices. These incentives include subsidies and tax benefits for construction companies that adopt eco-friendly materials such as steel fibers. This initiative encourages the use of sustainable construction practices and supports the market growth of steel fibers.

Vietnam Steel Fiber Market Future Outlook

The Vietnam Steel Fiber Market is projected to grow exponentially by 2028. The sustained growth will be driven by ongoing infrastructure projects, increased urbanization, and the rising awareness of the benefits of using steel fibers in construction. Moreover, advancements in manufacturing technologies and the development of new, high-performance steel fibers will further bolster market growth.

Market Trends

Expansion of Urban Infrastructure: Urban infrastructure development will continue to drive the demand for steel fibers. By 2028, ongoing urbanization and smart city projects will require high-quality construction materials, positioning steel fibers as a key component in building sustainable and resilient urban environments.

Adoption of Sustainable Practices: The Vietnamese steel fiber market will see a significant shift towards sustainable practices, with manufacturers investing in eco-friendly production technologies. By 2028, the market will be characterized by reduced carbon emissions and compliance with stringent environmental regulations, supported by government incentives.
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