Vietnam Overtakes Indonesia: Who Rules the World's Mother of Industry?
Jakarta, CNBC Indonesia — Vietnam has captured global industrial attention. The country, which two decades ago still depended on imported semi-finished steel, is now officially among the top 10 global crude steel producers, overtaking Indonesia as Southeast Asia’s largest producer.
Vietnam’s steel production is forecast to reach 24.7 million tonnes, while Indonesia’s is estimated at around 19 million tonnes annually.
Steel is not just another industrial commodity. The material is dubbed the ‘Mother of Industry’ due to its foundational role in construction, manufacturing, automotive, energy, shipbuilding, and defence sectors.
World Steel Association data shows Vietnam ranked 10th in global crude steel production in April 2026 after producing 2.1 million tonnes, a 4% increase from the same period last year. This achievement displaced Italy from the top 10 global steel producers.
Vietnam’s success is evidence of a major transformation over the years. In the early 2000s, the country’s steel industry still relied on billet imports to meet domestic construction needs. However, since 2010, Vietnam has built an integrated steel industry from upstream to downstream. Production no longer focuses solely on construction steel but also extends to manufacturing, shipbuilding, energy, and defence sectors.
Hoa Phat Group has played a major role in this transformation through its integrated Hoa Phat Dung Quat steel complex. The facility produces various high-value-added steels, including engineering steel, spring steel, welding wire, and high-speed rail rails.
Vietnam’s crude steel production surged from 20 million tonnes in 2023 to 24.6 million tonnes in 2025, a 23% growth in capacity over two years. Hoa Phat alone produced approximately 11 million tonnes of crude steel in 2025, accounting for 44.7% of Vietnam’s national output. The company aims to produce over 14 million tonnes this year.
High demand for infrastructure development, industrial zones, energy sectors, and manufacturing expansion has driven domestic steel consumption growth in Vietnam. In 2025, national steel consumption reached 24.1 million tonnes, a 12.9% increase from the previous year.
However, Vietnam’s success is not enough to challenge the true ruler of the global steel industry.
China Remains the World’s ‘Mother of Industry’ King
If Vietnam is in the top 10 and Indonesia in the top 15, China operates on a different level. World Steel Association data shows global crude steel production reached 1.85 billion tonnes in 2025, with China producing 960.8 million tonnes, equivalent to 52% of global output. This means over half the world’s steel comes from one country.
China’s dominance justifies its title as the global steel industry king and ruler of the ‘Mother of Industry’. Its position far surpasses other nations. India, in second place, produced 164.9 million tonnes (8.9% of global output), while the United States made 82 million tonnes and Japan 80.7 million tonnes. South Korea produced 61.9 million tonnes, Vietnam around 24.7 million tonnes, and Indonesia 19 million tonnes.
The scale of China’s production means the global steel industry’s direction heavily depends on the country’s economic conditions. When China’s property sector slows, global iron ore and coking coal prices fall. Conversely, when Beijing rolls out infrastructure stimulus, demand for raw materials and commodity prices surge.