Accelerating trade promotion: Breakthrough opportunity for domestic aluminum industry

Maintaining momentum but challenges remain

In recent years, the aluminum profile industry has made great strides. According to the Vietnam Aluminum Profile Association (VAA), the number of factories, production scale and total output have all increased sharply. In 2024, total output will reach nearly 1.5 million tons, equivalent to 4.2 billion USD, up 14.5% compared to 2023. Aluminum profiles account for 43.3%, recycled aluminum 16.7%, and the rest are other types. The export value in 2023 will reach 2.15 billion USD, and the market size in 2025 is expected to reach 4.53 billion USD. These figures show that the industry still has a lot of room for growth.

However, in addition to the achievements, the aluminum industry still faces many difficulties and paradoxes. Domestic enterprises only contribute 20% of the aluminum export value, the majority of the market share falls into the hands of FDI enterprises. Notably, from June 2025, the United States raised the aluminum export tax from 23% to 50%, turning Vietnam's largest market into a "narrow door". Non-tariff barriers, environmental regulations, and the risk of trade defense investigations from the US, EU, Japan, and Australia are forcing Vietnamese aluminum enterprises to be cautious when expanding their investment.

The aluminum profile industry has grown strongly in recent years. Illustrative photo

A representative of EuroHa Joint Stock Company pointed out a series of weaknesses: Lack of capital, high-tech human resources, modern metallurgical technology, and a lack of high-quality products. The aluminum electrolysis stage, which is a key step, is still not self-sufficient, while 100% of primary materials must be imported. “ The pressure of green transformation and ESG is weighing heavily on businesses, but specific instructions, capital, and human resources for this field are lacking ,” emphasized a representative of EuroHa Joint Stock Company.

It is even more difficult when domestic capacity has been in a state of surplus for many years. The real estate market is sluggish, the demand for aluminum for construction has decreased. Meanwhile, the escalating input costs have made many businesses no longer profitable. It can be said that the aluminum industry is under "double" pressure from international fluctuations and internal limitations.

Expectations for trade promotion

In this context, the role of trade promotion and support policies becomes more urgent. Mr. Vu Van Phu, Vice President and General Secretary of VAA, suggested: " It is necessary to reduce value added tax, reduce export tax by 5%, support green credit, guide ESG practices, and expand domestic and foreign markets ." According to him, only when businesses stabilize quality and build a Vietnamese aluminum brand can they replace imported goods and improve competitiveness.

From a management perspective, Mr. Vu Ba Phu, Director of the Trade Promotion Agency ( Ministry of Industry and Trade ), said that the pressure from tax increases from import markets is also an opportunity for the aluminum industry to comprehensively reform. "If we do not change soon, it will be difficult to improve our competitiveness in both domestic and international markets," Mr. Phu affirmed. He emphasized that Vietnam has a great advantage in bauxite resources, and electricity costs are much lower than in the region. This is the basis for developing the aluminum smelting industry in the long term.

Aluminum profile industry enterprises wish to receive more support in trade promotion and market expansion. Illustrative photo

The important point, according to the leader of the Trade Promotion Agency, is to promote trade in a substantial way. “ Participating in fairs and exhibitions is almost mandatory to learn about trends, find partners, and receive technology transfer. The Trade Promotion Agency will coordinate with VAA to support aluminum industry enterprises to participate more effectively ,” said Mr. Vu Ba Phu.

Not only stopping at market support, many opinions also emphasize the need for business linkage. Many businesses proposed to pilot the establishment of the Vietnam and World Aluminum Industry Alliance (VAW). This alliance will concentrate capital, technology, human resources, and at the same time share information and minimize risks. The pilot establishment of VAW will be a strategic step for the Vietnamese aluminum industry to affirm its position on the world map.

The opportunities for the aluminum industry remain huge as global demand is forecast to increase by 25% by 2030, construction aluminum will have the fastest growth rate in the period 2024-2029 and a series of trade agreements have opened wide doors.

Domestically, the Government has set many large and short-term goals for transport infrastructure development. By the end of 2025, the target of 3,000 km of highways will be exceeded, nearly 2,000 km of coastal roads will be completed, and Long Thanh airport will be basically completed. This is a great opportunity for the aluminum and aluminum profile industry to take advantage of to expand the domestic market.

However, according to many experts, to turn opportunities into real advantages, businesses cannot just wait for preferential policies. The core issue is still internal capacity. No one else but businesses must proactively innovate technology, improve product quality, and train highly skilled human resources. Tax policies or trade promotion support are only effective when businesses have enough courage to take advantage.

The aluminum industry is facing many opportunities to “grow fast”, and at the same time enter the big game with its own brand, technology and value chain. And to do this, trade promotion is not only a “foreign activity” but is also expected to become a strategic driving force, associated with industry restructuring.

Source: https://moit.gov.vn/tin-tuc/xuc-tien-thuong-mai/tang-toc-xuc-tien-thuong-mai-co-hoi-but-pha-cho-nganh-nhom-trong-nuoc.html

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