The closure of the country’s steel industry comes amid heightened tensions between Beijing and Washington over North Korea’s nuclear weapons program.
The government is reportedly considering a new regulation that would allow it to shut down the countrys largest steel producer, the VNS, for up to 30 days at a time.
That would be the longest suspension since 2008.
VNS is China’s largest steel company and was the largest producer of steel in Vietnam at the height of the Vietnam War.
The steel industry is already facing a severe financial crisis.
China shut down its major steel export market for the second time in three years last week, after the government halted a $4.6 billion agreement with the U.S. to sell the steel to China.
That agreement was supposed to be finalized by the end of the month.
The closure of Vietnam’s steel sector is also expected to affect other major industries, including the construction industry, which employs hundreds of thousands of people.
The government has been working to increase the supply of steel to build the country.
The VNS has been a major source of steel for the country, which relies on imports to meet its nearly $200 billion annual steel needs.
Vietnam’s steel output has been steadily declining in recent years.
The countrys economy shrank by 0.5 percent in the first quarter of 2019, compared to a 2.3 percent decrease in the same period last year.