The 2nd Congress of the Association of Aluminium Profile Manufacturers for Construction and Industry of Vietnam commenced, gathering industry leaders to set a transformative agenda for the next five years (2024-2029). In a relatively young but rapidly growing sector, the Vietnamese aluminium industry has doubled its output in the last seven years to a remarkable 1.3 million tonnes annually, establishing itself as a formidable player in the domestic and global markets.
Vietnam's aluminium profile manufacturers have invested significantly in quality improvements, emerging from a base of small and medium-sized enterprises, primarily with 100 per cent domestic capital. They have dominated the domestic market and established a burgeoning reputation internationally. Many young Vietnamese brands are already positioning themselves in the world market, an accomplishment that signals the industry's potential to compete globally.
Yet, behind this rapid expansion lies a critical challenge: despite possessing one of the world's largest bauxite reserves, Vietnam has yet to produce raw aluminium domestically. Around 80 per cent of the industry's aluminium inputs still rely on imports and recycled scrap, leaving the market vulnerable to fluctuating global prices. Rising input costs exacerbate this challenge, with price increases needing to catch up with production costs.
Trade barriers from major export markets, such as the United States and the EU, add to the industry's complexity. Over the past two years, the U.S. has launched numerous trade defence investigations against Vietnam's aluminium sector, joining a wave of protective measures targeting Asian aluminium exporters. Environmental regulations, greenhouse gas limits, and restrictive tariffs further tighten the path for Vietnamese aluminium exporters aiming for international markets.
Despite these obstacles, the Vietnam Aluminum Profile Association, under the leadership of Chairman Nguyen Minh Ke, has marked a productive 2019-2024 term. Noteworthy achievements include stabilising the Association's operations, establishing a new representative office in Ho Chi Minh City, and building a robust framework for legal compliance, policy advocacy, and a healthy business environment for legitimate manufacturers.
Looking ahead, the Association is prioritising trade defence policies as a strategic pillar for the sector's sustainability. The Association is also actively coordinating with Vietnam's Department of Trade Defense under the Ministry of Industry and Trade to equip businesses with the tools to navigate international trade investigations. High on its agenda is addressing anti-dumping issues, especially concerning aluminium profiles from China.
With these initiatives, the Vietnam Aluminium Profile Association and its members are charting a bold vision for 2024-2029—a future that promises growth, resilience, and an expanding global footprint for Vietnam's aluminium industry amidst a challenging international landscape.
The Vietnam Aluminium Profile Association has set a goal for the 2024-2029 term to foster the growth and development of the Vietnamese aluminium profile sector and the broader aluminium industry. They aim to support enterprises in achieving stable, efficient, and sustainable operations, adhering strictly to legal and ethical business standards.
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