After announcing revenue of approximately 4 billion USD in the first nine months of 2024, Hoa Phat Group (HPG), led by billionaire Tran Dinh Long, has seen its post-tax profit soar in Q3 2024.

The group’s Q3 post-tax profit rose by 51% year-on-year, increasing from 2,000 billion VND to 3,022 billion VND. Over the first nine months, Hoa Phat's profit surged 2.4 times to 9,210 billion VND, achieving 92% of its annual profit target.

This represents a strong comeback for Vietnam’s top steel producer in the context of rising steel prices and improving demand. Steel contributes 85% of HPG’s profits, followed by the agriculture sector.

In terms of revenue, Hoa Phat recorded over 34 trillion VND in Q3, a 19% increase compared to the same period last year. Over the first nine months, the company generated more than 105 trillion VND, equivalent to over 4 billion USD, marking a 23% rise from the same period in 2023. The group has already contributed 10,000 billion VND to the national budget in the first nine months of 2024, surpassing its total contributions for 2023.

Hoa Phat experienced a challenging year in 2022, with revenue plummeting to 142.77 trillion VND, down 5% from 2021. Consolidated post-tax profits dropped significantly, reaching just 8,444 billion VND, or 24% of 2021's level.

In 2023, Hoa Phat saw further declines, with revenue falling to 120.355 trillion VND and profits decreasing to 6,800 billion VND, reflecting a 16% and 19% drop, respectively, compared to 2022. The group's steel business alone saw a 22% reduction in profits during this period.

Despite these setbacks, HPG is now focused on developing its Hoa Phat Dung Quat 2 Steel Complex, a major project with a capacity of 5.6 million tons of hot-rolled coil annually. The first hot-rolled coil production is expected by the end of the year.

However, HPG continues to face pressure from imported steel, especially from China. According to the Vietnam Steel Association, China has increased steel exports in recent years due to high production capacity—exceeding 80%—while domestic demand declines. This surge in low-cost steel exports from China has triggered global protectionism, with potential for further escalation, while global steel prices remain low.

According to Chinese customs data, China’s finished steel exports in August rose 21.3% from July and 14.7% year-on-year, reaching 9.5 million tons, the third-highest monthly total in 2024. China is on track to export more than 100 million tons of steel in 2024, a level not seen since 2016.

Ngoc Cuong