How VinMetal is quietly propping up steelmaker Pomina

Rather than injecting large amounts of capital directly into Pomina, VinMetal appears to be quietly taking control of both the upstream supply chain and downstream product distribution — a more cautious approach than previously disclosed.

More than six months after announcing their cooperation, the first signs of collaboration between Pomina and VinMetal have begun to emerge in the steelmaker’s financial statements.

Instead of high-profile capital injections or large-scale financial restructuring, early developments suggest VinMetal is prioritizing the restoration of Pomina’s production operations rather than directly addressing the company’s lingering financial burdens.

According to Pomina’s Q1/2026 financial statements, revenue continued to decline despite signs of financial support.

Sales revenue fell to VND466 billion ($17.68 million), equivalent to about 45% of the VND1.03 trillion recorded a year earlier and slightly below the VND488 billion posted in the Q4/2025.

High interest expenses continued to erode earnings, resulting in a net loss of VND179 billion ($6.79 million) during the first three months of the year.

Production activity, however, showed more encouraging signs.

While Pomina had previously relied largely on remaining inventory to maintain minimal operations, inventory value doubled in Q1 to nearly VND750 billion ($28.46 million).

The increase was mainly driven by raw materials, which rose by around VND160 billion ($6.07 million), and finished construction steel products, which increased by more than VND210 billion. Previously, inventory levels for these items had remained at only several tens of billions of dong.

The changes suggest Pomina’s production cycle is gradually restarting, with clearer movement between input materials and finished output products.

Pomina also recorded new advance payments to suppliers including Hoa Phat Hai Duong Steel worth VND142 billion ($5.39 million), VAS Nghi Son Group worth VND180 billion and Nansei Steel worth about VND74 billion.

The payments may represent prepayments aimed at securing raw material supply for future production, particularly as all three companies operate in the steel and metallurgy sectors.

Although advance payments provide little direct economic benefit to Pomina, they may help rebuild supplier confidence and reduce the risk of supply disruptions after the company’s prolonged financial difficulties.

On the sales side, Pomina also appears to be prioritizing cash-generating transactions to avoid further strain on liquidity.

Its cash flow statement showed cash collections from customers reached VND471 billion, broadly matching quarterly revenue, suggesting most sales were collected immediately in cash.

VinMetal’s role increasingly visible

While disclosures related to VinMetal remain limited, the financial statements offer clues about how the partnership may be operating.

According to the report, payables linked to Vingroup ecosystem entities have risen to about VND770 billion ($29.22 million). At the same time, Pomina recorded only around VND132 billion in borrowing proceeds during the quarter, while interest expenses remained largely unchanged.

Notably, despite adding hundreds of billions of dong (VND100 billion = $3.79 million) in raw material inventory and recording more than 400 billion dong in supplier prepayments, Pomina reported only about VND265 billion dong in cash payments to suppliers for goods and services.

This suggests part of the production funding may not be flowing directly through Pomina’s cash accounts.

One plausible explanation is that VinMetal is participating in the supply chain by directly paying for or guaranteeing payments on raw material orders, which are then recognized as future payables on Pomina’s balance sheet.

On the distribution side, VinMetal’s involvement may also be reflected in more than VND200 billion in “other receivables”.

The figure is roughly equivalent to the value of finished construction steel inventory at the end of the quarter, potentially indicating commercial agreements or future product off-take commitments that have yet to qualify for revenue recognition under accounting standards.

VinMetal’s apparent presence at both ends of Pomina’s operating chain — from raw material procurement to product distribution — suggests a relatively cautious partnership model.

Under this arrangement, Pomina appears to be refocusing primarily on construction steel production, historically the company’s core business strength.

Even so, Pomina’s biggest challenge remains unresolved.

Interest expenses continue to weigh heavily on profitability and shareholders’ equity, while the long-delayed blast furnace project — once expected to mark a major turning point for the company — still lacks a clear timeline for completion and resumption of operations.