Hoa Phat Group (HPG), under Tran Dinh Long’s leadership, continues to dominate Vietnam's steel industry, holding a 38% market share in construction steel as of the third quarter of 2024. This figure is a significant jump from 22% in the first half of 2015.

Since 2014, Hoa Phat has been the number one player in Vietnam’s construction steel market. From a 7% market share in 2007, the company surpassed competitors such as Pomina and Tisco to claim over 19% in 2014.

By early 2021, Hoa Phat became Vietnam’s largest producer of crude steel, overtaking Formosa.

With a 28-fold growth over 20 years, Hoa Phat has secured a place among the top 50 steel producers globally.

In the third quarter of 2024, Hoa Phat’s post-tax profits surged by 51% year-over-year, reaching VND 3.022 trillion (USD 123 million). The company's performance in the first nine months of 2024 was impressive, with revenue of USD 4 billion and profits increasing 2.4 times to VND 9.210 trillion (USD 373 million), achieving 92% of its full-year profit target.

Following the financial shock of 2022-2023, Hoa Phat’s strong performance in 2024 has seen its stock price rebound from VND 11,000 in October 2022 to VND 27,000-29,000 per share. Tran Dinh Long’s wealth has also more than doubled, rising from USD 1.2 billion to USD 2.5 billion.

Will he hold the top spot among Vietnam’s billionaires?

In 2025, Hoa Phat is set to see the first two phases of its mega project, Dung Quat 2, go live, with a capacity of 5.6 million tons of hot rolled coil (HRC) steel. This development is expected to drive Hoa Phat’s revenue and profits even higher, potentially solidifying Tran Dinh Long’s standing among Vietnam’s billionaires and possibly pushing him to the top spot.

With Hoa Phat's outstanding performance in the third quarter of 2024, the company is quickly recovering from the global steel price drop and declining consumption seen in 2022.

Hoa Phat’s revenue is rebounding strongly, reaching over VND 100 trillion (USD 4 billion) in the first nine months of 2024 and could soon return to its peak of VND 151 trillion (USD 6.1 billion) recorded in 2021.

The company’s profits are also climbing, with expectations to match its 2020 figure of VND 15.3 trillion (USD 620 million) and potentially challenge its record-breaking 2021 profit of over VND 37 trillion (USD 1.5 billion). As of the first nine months of 2024, Hoa Phat has achieved VND 9.210 trillion in profit.

Once completed, the Dung Quat 2 project, which has a total investment of USD 3 billion, will propel Hoa Phat into the top 30 largest steel producers globally by 2025. At the 2023 General Meeting of Shareholders, Tran Dinh Long stated that when the Dung Quat 2 plant is operational, Hoa Phat's revenue could increase by VND 80 trillion to VND 100 trillion.

In Vietnam, steel consumption and prices are also rising in response to positive developments in the real estate market and the government's efforts to accelerate public investment.

Hoa Phat plans to continue its expansion with multi-billion-dollar projects in Phu Yen, including the Bai Goc Port (estimated at VND 24 trillion), the Hoà Tam Industrial Zone infrastructure project (VND 13.3 trillion), and the Hoà Phat Steel Complex in Hoà Tam (VND 86 trillion).

Meanwhile, Formosa no longer poses a barrier to Hoa Phat's growth, and Tisco continues to struggle financially.

In agriculture, Hoa Phat remains a leader in clean egg and pork production, according to its third-quarter report for 2024. The company has also made strides in household appliances and is expanding its industrial zones in Hung Yen and Ha Nam.

Hoa Phat is benefiting from the global steel price surge, which has rebounded sharply from CNY 2,780 per ton in mid-August to CNY 3,381 per ton by October 16, driven by China’s recent economic stimulus measures.

As phase 2 of the Hoa Phat Dung Quat project is completed, profits are expected to increase significantly.

According to Forbes, Tran Dinh Long’s current net worth is USD 2.5 billion. As Hoa Phat's projects and profits continue to grow, Long’s wealth could soon rival that of Pham Nhat Vuong, who was worth USD 4.2 billion as of October 15, according to Forbes, keeping him among Vietnam's wealthiest.

However, Hoa Phat also faces challenges, including a slowdown in economic growth, delays in public investment disbursement, and increasing competition both domestically and internationally. China’s steel import tax into Vietnam currently stands at 0% under the ASEAN-China Free Trade Agreement. Environmental concerns and Vietnam’s Net Zero commitment by 2050 also pose risks.

Hoa Phat has previously experienced significant shocks (in 2012 and 2022) due to declining steel consumption. The company posted substantial losses in the last two quarters of 2022, and Tran Dinh Long briefly fell off Forbes' list of billionaires at the end of that year.

Manh Ha