Table of Contents
I. Description......................................................................................................................1
II. Evaluation......................................................................................................................1
III. Prediction......................................................................................................................2
IV. Illustration.....................................................................................................................3
V. Preferences....................................................................................................................4
, Prices and Markets- Assignment 1
I. DESCRIPTION
Consistent with VOV Vietnam (26 January 2018), the domestic steel market in Viet Nam is
currently gaining momentum. The market is estimated to increase by 20-22% in 2018. Not
only the demand is growing strongly but the steel supply also has seen a dynamic escalation.
The demand for steel in the domestic market is going up rapidly and reached 20 million
tonnes approximately in 2017 (Research and Markets 2018) and it is predicted to rise
continuously at 20%- 22% in 2018 (Shira, D 2018,). On the other hand, the production of
steel also thrives on the volume as well. As stated by Research and Markets (2018, para.4)
“there are more than 100 companies in Vietnam's steel industry, of which the larger ones
include Hoa Phat Steel, Hoa Sen Steel, Vietnam Steel Corporation and so on.” The vibrant
development of the steel industry that affects both demand and supply is based on the country
economy expansion. In accordance with Euromonitor International Ltd (2018), the growth
rate of Viet Nam’s GDP in 2018 will rise by 6,2%, hence rising more disposable income
which helps to boost up the living standards of residents. The growing demand for houses,
automobiles, roads, etc has helped steel-consuming industries such as manufacturing and
construction to developed intensely (VOV Vietnam 26 January 2018). Secondly, the anti-
dumping and anti-tax evasion on Chinese steel products from several countries makes many
Vietnamese steel contracts could not export because they are considered to be originated
from China.( Khoa, D 2018).This has added up the quantities of the domestic supply. Thirdly,
as Viet Nam is one of the fastest growing markets in the world steel industry, the domestic
demand is blooming whereas the local companies have extremely low production capacity
( less than 1 million in a year). Therefore, the gap has attracted many foreign firms to invest
in Viet Nam’s steel industry. Furthermore, Viet Nam still does not have the policies for
foreign investment which granted many enterprises with preferential policies in taxations
(Research and Markets 2018). This situation has contributed to a large amount of steels that
have been soared up recently.
II. EVALUATION
Based on the theory of Principles of microeconomics (Hutchinson et al.2017) the market
condition is considered as surplus where the supply exceeds the demand. According to VOV
1
I. Description......................................................................................................................1
II. Evaluation......................................................................................................................1
III. Prediction......................................................................................................................2
IV. Illustration.....................................................................................................................3
V. Preferences....................................................................................................................4
, Prices and Markets- Assignment 1
I. DESCRIPTION
Consistent with VOV Vietnam (26 January 2018), the domestic steel market in Viet Nam is
currently gaining momentum. The market is estimated to increase by 20-22% in 2018. Not
only the demand is growing strongly but the steel supply also has seen a dynamic escalation.
The demand for steel in the domestic market is going up rapidly and reached 20 million
tonnes approximately in 2017 (Research and Markets 2018) and it is predicted to rise
continuously at 20%- 22% in 2018 (Shira, D 2018,). On the other hand, the production of
steel also thrives on the volume as well. As stated by Research and Markets (2018, para.4)
“there are more than 100 companies in Vietnam's steel industry, of which the larger ones
include Hoa Phat Steel, Hoa Sen Steel, Vietnam Steel Corporation and so on.” The vibrant
development of the steel industry that affects both demand and supply is based on the country
economy expansion. In accordance with Euromonitor International Ltd (2018), the growth
rate of Viet Nam’s GDP in 2018 will rise by 6,2%, hence rising more disposable income
which helps to boost up the living standards of residents. The growing demand for houses,
automobiles, roads, etc has helped steel-consuming industries such as manufacturing and
construction to developed intensely (VOV Vietnam 26 January 2018). Secondly, the anti-
dumping and anti-tax evasion on Chinese steel products from several countries makes many
Vietnamese steel contracts could not export because they are considered to be originated
from China.( Khoa, D 2018).This has added up the quantities of the domestic supply. Thirdly,
as Viet Nam is one of the fastest growing markets in the world steel industry, the domestic
demand is blooming whereas the local companies have extremely low production capacity
( less than 1 million in a year). Therefore, the gap has attracted many foreign firms to invest
in Viet Nam’s steel industry. Furthermore, Viet Nam still does not have the policies for
foreign investment which granted many enterprises with preferential policies in taxations
(Research and Markets 2018). This situation has contributed to a large amount of steels that
have been soared up recently.
II. EVALUATION
Based on the theory of Principles of microeconomics (Hutchinson et al.2017) the market
condition is considered as surplus where the supply exceeds the demand. According to VOV
1
