Jfe Shoji Vietnam Co. Ltd (Vietnam)

The subject is wholly invested by JFE SHOJI CORPORATION. The company specializes in trading steel products (like cold rolled steel, hot rolled steel, stainless steel...). Some main import markets are the Philippines, China, Taiwan, Thailand... Instead of favorable movement in steel price in the last months of 2021, the steel industry is not actually optimistic in 2022 due to unfavorable macroeconomic factors. Typically, Russia – Ukraine geopolitical tension increases coal price and China's Zero Covid-19 policy significantly decreases steel demand. In addition, a high inflationary rate also inhibits the development of many economic sectors. Along with that, a drop in steel price contributes to a narrowing profit margin in the steel industry. By 2023, domestic demand continued to weaken, while the export market was affected by the economic recession, making the steel industry outlook still less positive. In 2023, the pressure on raw material price fluctuations decreased, but stability was still difficult to achieve in the short term. Economic recession might limit demand for iron and steel. In addition, real estate market instability also reduced domestic demand for steel products. Steel prices were continuously adjusted downward along with weak consumption, making the operations of many businesses in this industry difficult.In fact, a series of policies to support the real estate market have been issued since the beginning of 2023. The Government made efforts to accelerate public investment disbursement in 2023, especially in the last month of the year to create breakthrough growth with the hope that the steel market can recover in the first quarter of 2024.