Vietnam’s shift toward green steel is not merely a technological choice; it represents a strategic transformation at the national policy level. This direction is clearly established in Decision No. 261/QĐ-TTg, signed by Deputy Prime Minister Bùi Thanh Sơn, approving the Steel Industry Development Strategy to 2030 with a vision to 2050. The document makes a strong statement: Vietnam will continue to develop heavy industry, but it must do so in line with the increasingly stringent environmental standards of the world, rather than following the traditional high-emission growth path.
This approach reflects an important shift in development thinking. The steel industry—long associated with heavy energy consumption and large emissions—is now being placed within the broader framework of green transition and carbon reduction. This means that any future expansion of production capacity must go hand in hand with technological innovation, improved energy efficiency, and lower greenhouse gas emission intensity. This is the foundation that will prevent Vietnam’s steel sector from being locked into a high-emission industrial model and instead allow it to move in step with the global decarbonization trend.
In the context of rapidly changing international trade rules, this orientation is of critical importance. Major markets such as Europe, North America, and developed Asian economies are tightening environmental requirements through carbon border adjustment mechanisms, green public procurement standards, and emissions reduction commitments across supply chains. Without transformation, Vietnamese steel could face carbon tariffs, stricter technical barriers, or exclusion from the supply chains of multinational corporations. By formally incorporating green steel into its national development strategy, Vietnam is demonstrating proactive adaptation rather than reactive compliance after barriers have already been imposed.
The transition to green steel is therefore not only about meeting environmental expectations; it is also about safeguarding national competitiveness. As carbon emissions increasingly translate into trade-related costs, countries that produce steel with lower emission intensity will enjoy a clear advantage. Decision 261 lays the groundwork for this advantage by encouraging the adoption of electric arc furnace technology, greater use of scrap steel, improved energy efficiency, and closer alignment between steel production and a progressively cleaner power mix.
This strategic shift also opens the door to upgrading the value of Vietnam’s steel industry. Producing under green standards enables Vietnamese steelmakers to participate more deeply in high-value segments such as steel for automobiles, renewable energy infrastructure, modern transport systems, shipbuilding, and precision manufacturing. In these sectors, low-carbon performance is rapidly becoming a prerequisite rather than a secondary benefit.
At the macro level, integrating environmental requirements into the steel development strategy signals that Vietnam is choosing a new-generation industrialization pathway: growth accompanied by emissions control, expansion without sacrificing environmental integrity. This aligns with international climate commitments and enhances Vietnam’s image as a responsible manufacturing hub within global supply chains.
In summary, Decision 261 is not just a sectoral policy document; it is a clear declaration of Vietnam’s long-term heavy industry development model. Green steel, therefore, is not simply a technological trend but a strategic foundation that will help the steel industry overcome rising global carbon barriers, access demanding markets, and steadily move up the global industrial value chain.
