ZongXiang, a leading Chinese steel manufacturer, recently completed a significant export of square steel bars to Vietnam, marking a strategic move in the Southeast Asian market. This shipment, finalized in May 2025, aligns with Vietnam’s booming construction and manufacturing sectors, which have seen robust demand for high-quality steel products. The export underscores ZongXiang’s growing presence in the region, capitalizing on Vietnam’s economic growth and its position as a manufacturing hub.

The batch of square bars, known for their versatility in construction, infrastructure, and industrial applications, was tailored to meet Vietnam’s stringent quality standards. These bars, typically used for structural frameworks, machinery components, and fabrication, were produced at ZongXiang’s advanced facilities in China, ensuring compliance with international specifications. The export deal, valued at an estimated $2 million, involved approximately 1,000 metric tons of square bars, shipped via Cai Mep deep-sea port, a key hub for Vietnam’s sea-borne exports.

Vietnam’s construction sector, fueled by urbanization and foreign investment, has driven demand for steel products. The country’s export-led economy, with a focus on electronics, textiles, and footwear, also requires robust materials for industrial applications. ZongXiang’s square bars, known for their durability and precision, cater to these needs, supporting projects ranging from high-rise buildings to factory expansions. This shipment strengthens trade ties between China and Vietnam, despite ongoing geopolitical tensions in the South China Sea.

However, the export occurs amid challenges posed by U.S. trade policies. The Trump administration’s proposed 46% tariffs on Vietnamese exports to the U.S., set to take effect post-July 2025 unless negotiations succeed, have raised concerns. Vietnam’s role as a conduit for Chinese goods, including steel, has drawn scrutiny, with fears that Chinese firms like ZongXiang may face indirect impacts. To mitigate risks, ZongXiang has diversified its supply chain, ensuring compliance with trade regulations and avoiding reliance on U.S. markets.

The deal also reflects Vietnam’s delicate balancing act between China and the U.S. While Chinese investment, including ZongXiang’s contributions, has created jobs and bolstered Vietnam’s economy, it has sparked concerns about over-dependence on Chinese supply chains. Vietnam’s government is pushing for reforms to enhance domestic production, as highlighted by Communist Party leader To Lam, who emphasized sustainable growth. ZongXiang’s export aligns with these goals by supporting Vietnam’s industrial capacity without undermining local industries.

ZongXiang’s strategic timing capitalizes on a temporary U.S. tariff pause, allowing uninterrupted trade flows. The company’s focus on quality and reliability positions it as a preferred supplier in Vietnam’s competitive market. This export not only boosts ZongXiang’s regional footprint but also reinforces Vietnam’s role as a key player in global supply chains, navigating complex trade dynamics with resilience.