Commenting about the existence of too many steel projects, Head of the Industrial Policies Institute under the Ministry of Industry and Trade Phan Dang Tuat said that this is an unavoidable consequence of the old way of acting in which one follows another in making investments.

What would you say about the high number of 32 steel projects which have still been implemented despite the fact that they are not named in the steel industry development strategy?

Under the steel industry development strategy, production capacity by 2010 will reach 10-11mil tonnes and be over 20 mil tonnes by 2020, which will match the demands of the national economy. However, if counting the capacity of the unprogrammed projects, capacity will reach around 60mil tonnes.

60mil tonnes is a huge amount. Of course, when productivity exceeds demand, Vietnam may think of exporting steel. However, in this case, a question must be asked: Is it worth accepting ‘dirty’ technologies in order to have steel imports?

We well know that the ‘golden age’ of the steel industry, when it could bring high added value, is over. Developed countries are trying to send steel projects to developing countries, as the industry pollutes the environment and brings low economic efficiency. The industry is the ‘trap of dirty technologies’.

Why do you call this the ‘trap of dirty technologies’?

Let’s look at the things the steel industry can bring. First, the industry uses too many natural resources, from land to water resources. It consumes too much energy, while Vietnam cannot get modern technologies transferred. The industry does not create many jobs.

Second, as I said, the golden age of the industry, when it could create high added value, is over.

The steel industry not only cannot create high added value, it affects the living environment for future generations.

I know a lot of workers in the steel industry who have become old and sickly and don’t have a future. They have become a burden on society.

It’s a pity that a lot of people still think steel is a kind of ‘high-tech’ industry and cherish the hope of exporting steel products.

How many steel mills do you think would match economic growth?

I think that the number of steel mills has increased too rapidly. Except high-grade steel, Vietnam just should aim to have output big enough to satisfy the domestic market and avoid relying on imports. Vietnam should not aim to become a steel export country, or it will fall into the trap of unsustainable development.

What lesson do you think we should draw from the breaking of the steel industry strategy?

We should learn lessons from many countries which once experienced bitter lessons. For the last several years, we have given warnings about the excess of steel projects in Viet Nam and about the importation of dirty technologies on public forums. However, our efforts have not brought much effect. You can see that what is happening with the steel industry now once happened with the movement of making investment in cement plants and sugar plants. It seems that in Viet Nam, investors still make investment decisions by following others. (VNN)