return icon Vietnamnet.vn

Steel manufacturer has $1.1 billion thanks to huge public investment package

Strong cash flow to the stock market, a VND700 trillion package for public investment, and high demand for ingot steel from China have all helped billionaire Tran Dinh Long pocket more money despite the Covid-19 crisis.

According to the Vietnam Steel Association (VSA), Vietnam is the only ASEAN country expected to obtain positive GDP growth in 2020. The government has been trying to accelerate public investment to boost economic development.

 

 

{keywords}

Tran Dinh Long, president of Hoa Phat Group

 

 

This will bring great opportunities to steel manufacturing companies. VSA estimated that in July alone, 2.1 million tons of steel were produced, an increase of 7.7 percent over the year before and the same as July 2019.

Nearly 1,956 tons of steel of different kinds sold in the month, an increase of 11.25 percent over June and a decrease of 3.6 percent compared with the same period last year. This included 424,700 tons of exports, up by 41.37 percent over the month before and 16.2 percent over the same period last year.

Hoa Phat Group (HPG) of Tran Dinh Long and Hoa Sen Group (HSG) of Le Phuoc Vu both reported good business results, while other small and medium enterprises had gloomy business performance.

The HPG share price soared from VND13,300 per share on March 27 to VND24,350 per share on August 18. This helped Long’s stock asset value increase by hundreds of million of dollars to $1.1 billion, according to Forbes.

In H1, Hoa Phat reported revenue of VND39.7 trillion and post-tax profit of VND5.06 trillion, increasing by 30 percent and 31 percent, respectively, compared with the same period last year.

The HPG share price soared from VND13,300 per share on March 27 to VND24,350 per share on August 18. This helped Long’s stock asset value increase by hundreds of million of dollars to $1.1 billion, according to Forbes.

The 80 percent increase helped Hoa Phat’s capitalization value increase by $1.6-1.7 billion within a short time.

Analysts said some large steel manufacturers still made high profits during the pandemic because the increased public investment steel demand sharply. Also, manufacturers have increased steel and ingot steel exports to China and regional markets.

According to Bao Viet Securities, the VND700 trillion public investment package is hoped to create motivation for construction activities from 2021. Meanwhile, input materials for steel manufacturing, such as coal and flat steel billets, are on the decrease, which will ensure high profits for manufacturers.

Earlier, analysts had predicted that 2020 would be a prosperous year for the steel industry with opportunities from CPTPP and EVFTA.

At the HPG annual shareholders’ meeting, its managers said the consumption of structural steel in the domestic market may decrease, but that ingot steel exports are expected to increase sharply. The exports can bring profit of VND300,000-1 million per ton. 

V. Ha

Vietnamese billionaires pour money into non-core business fields

Vietnamese billionaires pour money into non-core business fields

While billionaires have been expanding their business fields, other businesspeople have scaled down their operations and sold some subsidiaries.

Did billionaire Vuong foresee Vietnam joining Quad Plus?

Did billionaire Vuong foresee Vietnam joining Quad Plus?

Covid-19 has forced manufacturers to consider restructuring the value chain, according to Sunny Hoang Hoa from Savills HCM City. Vietnam is expected to benefit from the trend.

MORE NEWS

VIETNAM NEWS HEADLINES OCTOBER 7

Two more national parks nominated ASEAN heritage ones

Coc Coc browser, search engine recognised national digital platform

Vietnamese-developed Coc Coc browser and search engine is now eligible to become a digital platform serving the people in 2022, the Ministry of Information and Communications announced on October 7.

VIETNAM BUSINESS NEWS OCTOBER 7

Vietnamese firms attend M-Tech Osaka 2022 expo

Vietnam Airlines flight makes emergency landing to save German passenger

A Vietnam Airlines flight en route from Germany to Ho Chi Minh City made an emergency landing at Baku Heydar Aliyev Airport of Azerbaijan on late October 6 to save a German passenger with health problem.

SSC warns investors about online securities trading apps

Some businesses have created websites and trading applications, such as Passion Invest, Finhay, Tikop, Infina, Savenow and BUFF, to raise capital under unlicensed business cooperation contracts.

Investors warned of the possibility of corporate bond default

In the financial market, investors need to keep in mind the principle of high risk, high return. Therefore, the higher the bond yield, the greater the probability of default.

PetroVietnam, BSR seek foreign capital for Dung Quat

A delegation of officers from PetroVietnam and Binh Son Oil Refining and Petrochemical JSC has attended a thematic seminar on export funding – TXF Asia 2022 – in Singapore.

Lenders look further afield for recruitment

As digital transformation calls for a different set of skills and knowledge, many financial institutions are turning to the overseas market for recruitment.

Moss-covered houses on Tay Con Linh Mountain

The moss-covered houses of the Dao ethnic people are among the special features of Tay Con Linh Mountain in the northern province of Ha Giang.

PM orders karaoke service licensing be tightened

The prime minister has ordered the Ministry of Culture, Sports and Tourism to study and issue more stringent karaoke service licensing regulations.

Six airports proposed for expansion under PPP format

The Ministry of Transport has written to the prime minister proposing upgrading and expanding six airports under the public-private partnership (PPP) format.

VN companies can now compete fairly with cross-border platforms

Cross-border TV OTT platforms will have to have operating licenses and pay tax, and domestic firms will be subjected to looser censorship, thus creating opportunities for domestic firms to compete with foreign ones.

Vietnam ranks 48th in 2022 Global Innovation Index

Vietnam is placed 48th among 132 economies in the Global Innovation Index 2022.

New UNDP Resident Representative pledges support to Vietnam’s development

Ramla Al Khalidi, newly-appointed UNDP Resident Representative in Vietnam, has pledged to further support Vietnam’s development, covering climate change response and the settlement of bomb and mine consequences.

VN should not become a place where investors exploit only cheap labor

Vietnam wants foreign investors to come to cooperate and not build closed facilities that are separate oases in the economy, former chair of the Vietnam Confederation of Commerce and Industry (VCCI) Vu Tien Loc said.
back_to_top