Domestic steel businesses have cut construction steel prices by between VND100 and VND610 per kilo to VND15,020 ($0.63) to VND17,570 ($0.73), depending on the brand and type.

They said input material prices are falling and so are global steel prices. In particular, Chinese steel producers have recently cut the price of hot rolled coil in the Vietnamese market.

The slow progress of construction projects is also to blame.

The Mercantile Exchange of Vietnam (MXV) said the steel price could fall further, particularly as Chinese producers keep cutting the price in Vietnam. Demand is predicted to be lower than expectations, forcing domestic enterprises to continue to lower prices.