TAY NAM STEEL – LEADING QUALITY THROUGH EVERY TERRITORIAL TRANSFORMATION

Vietnam’s steel industry is undergoing a significant transformation — not only aiming for growth but also for sustainable development. At the 6th Congress of the Vietnam Steel Association (VSA), the commitment to achieve Net Zero by 2050 was officially established as a core strategic direction. Tay Nam Steel is not standing aside; the company is taking clear, deliberate steps to join the industry’s green transition journey. Vietnam’s Steel Industry Progresses Step by Step Toward Green Standards At the 6th Congress of the Vietnam Steel Association (VSA) held in May 2025, the report showed that Vietnam’s domestic steel consumption reached over 24.5 million tons in 2024 — the highest level in the past decade. From 2019 to 2024, the total volume of finished steel products surpassed 176 million tons, reflecting the industry’s impressive growth momentum. However, this rapid growth also comes with significant challenges. The steel industry is currently among the largest sources of CO₂ emissions. At the same time, green trade barriers such as CBAM (Carbon Border Adjustment Mechanism) from the EU have started taking effect, requiring Vietnamese steel manufacturers to adopt clear emission reduction pathways in order to maintain their export capacity and global integration. (Source: Ministry of Industry and Trade) VSA Sets Net Zero Target and Recommends Concrete Actions At the 6th Congress, VSA set a clear vision: Vietnam’s steel industry will aim for carbon neutrality (Net Zero) by 2050. To achieve this goal, the association recommends that businesses take the following actions: Transition to Electric Arc Furnace (EAF) technology to reduce dependence on blast furnaces Apply Carbon Capture, Utilization, and Storage (CCUS) technologies Increase the use of recycled materials and renewable energy Conduct greenhouse gas inventories and product life cycle assessments, following international standards such as ISO 14064-1:2018 and ISO 14067 Implementing these standards not only enhances

(Tay Nam Steel) – On July 3, 2025, according to the latest update from the Vietnam Steel Association (VSA), the domestic steel market in July continues to show clear signs of recovery: steel prices remain stable, demand is rising thanks to increased public investment, and domestic supply remains steady.This is considered a favorable time for investors and contractors to proactively secure materials and get ahead of the peak construction season at the end of the year. Steel Output Continues Steady Growth According to data from the Vietnam Steel Association (VSA), in the first quarter of 2025, crude steel output reached 5.81 million tons (up 9.1%) and finished steel reached 7.464 million tons (up 5.7%) compared to the same period in 2024. These figures indicate that the steel industry is experiencing a positive recovery, driven by strong domestic demand—especially from public investment projects. (Source: VSA) Three Key Factors Stabilizing the Steel Marke According to statistical data, three main factors are contributing to the gradual stabilization of the steel market: Optimized Production Costs The prices of iron ore and coking coal—two primary input materials—have dropped significantly in recent months, while steel selling prices have only seen a slight increase. This cost balance allows manufacturers to improve their gross profit margins, strengthen supply capabilities, and help stabilize market prices. Protection of the Domestic Market The implementation of anti-dumping duties on imported steel from China is a positive move, creating a level playing field and supporting the sustainable growth of Vietnam’s steel industry. Strong Growth Expected in Q2/2025 With efficient production and favorable input prices, several enterprises in the sector expect to achieve over 20% profit growth in Q2. This continues to reinforce confidence in the recovery and stabilization trend for the second half of the year. Tay Nam Steel – Steadfast with Vietnam’s

On June 17, 2025, at the headquarters of Tay Nam Steel Production & Trading Co., Ltd. (Ton Tay Nam), the Certification Ceremony for ISO 14064-1:2018 and ISO 14067:2018 standards was held, certified by BSI Vietnam. This is a significant milestone that marks Ton Tay Nam’s strong commitment to a sustainable development strategy, greenhouse gas emissions control, and the pursuit of minimizing the carbon footprint in industrial production. ISO 14064-1:2018 and ISO 14067:2018 – Two Key Standards in Emissions Management ISO 14064-1:2018 is an international standard that provides guidance on identifying, measuring, and reporting greenhouse gas (GHG) emissions at the organizational level. Meanwhile, ISO 14067:2018 focuses on quantifying the Product Carbon Footprint (PCF) of individual products, thereby helping businesses develop emission reduction strategies tailored to each specific value chain. Speaking at the ceremony, Mr. Doan Van Khai – Business Development Director of BSI Vietnam, highly praised the efforts made by Ton Tay Nam to achieve these rigorous standards. “I’m truly impressed by Ton Tay Nam’s proactive and serious approach to adopting international standards. The company’s implementation of GHG inventory in accordance with ISO 14064-1:2018 and its product carbon footprint assessment following ISO 14067:2018—something not all businesses are ready to pursue—demonstrates a strong commitment to sustainable development and environmental data transparency. These are values increasingly prioritized by the global market,” he emphasized.” Sustainable Commitment – A Milestone on the Green Development Journey At the ceremony, Mr. Bui Van Hung – Assistant to the General Director, in charge of system management, emphasized: “We are committed to continuously maintaining and improving our greenhouse gas management system in particular, and environmental management system in general. We will closely monitor emissions data and progressively reduce the carbon footprint of each product. In the context of globalization and increasingly strict requirements from international markets—such as the EU’s

As countries tighten regulations on emissions and trade, Vietnam’s steel industry is facing significant risks due to the European Union’s (EU) new policies. The EU’s stricter Carbon Border Adjustment Mechanism (CBAM) and protective measures for domestic industries are not only increasing export costs but also creating new barriers for Vietnamese businesses.   EU Strengthens Steel Import Controls Recently, the European Commission (EC) announced its Steel and Metals Action Plan, which aims to tighten import control measures, particularly regarding “clean steel.” This poses major challenges for Vietnam’s steel industry, which heavily relies on the EU as a key export market. Tightening the Carbon Border Adjustment Mechanism One of the EC’s key measures is expanding the CBAM to cover downstream steel and aluminum products. The Commission is concerned that businesses may circumvent regulations by making minor modifications to goods or importing downstream products from countries with weaker climate policies. As a result, the EC has pledged to conduct a comprehensive CBAM review in Q4 2025 and propose new legislation to expand its scope while implementing strategies to prevent circumvention. Protecting the European Steel Industry To further safeguard the domestic steel industry, the EC plans to adjust its trade defense mechanisms, including: Reducing steel imports subject to safeguard measures by 15%, achieved by lowering the liberalization rate from 1% to 0.1%, eliminating transition mechanisms, and restricting quota access. Implementing a new long-term safeguard measure from July 1, 2026, after the current measure expires on June 30, 2026. Strengthening trade defense investigations into the aluminum sector, with additional measures expected soon. Applying the “melt and cast” origin rule to prevent tariff circumvention by shifting production stages to non-targeted countries. Challenges for Vietnam’s Steel Industry The EU is currently Vietnam’s largest steel export market, accounting for 23% of total exports. However, with the new import