Steel sales in Vietnam drop 7% in 2022
Steel output in Vietnam dropped 11.9% year-on-year last year to 29.34 million tons, while sales fell 7.2% to 27.3 million tons, the Vietnam Steel Association (VSA) reported.
The VSA attributed the worse performance to the shrinking domestic market and complicated movements of steel material prices, despite the country’s impressive economic growth of 8.02% in the post-pandemic recovery period.
In 2022, Vietnam spent $11.92 billion on importing 11.68 million tons of steel products, up 3.04% year-on-year in value but down 5.62% in value. Major suppliers to the country were mainland China with 41.65% of the total, Japan with 15.06%, South Korea with 12.27%, Taiwan with 8.84%, and India with 6.5%.
Vietnam earned $7.99 billion from exporting 8.4 million tons of steel in 2022, down 32.2% and 35.85% year-on-year, respectively, per the VSA report. Major export destinations were ASEAN with 36.22% of the total, the EU with 18.37%, the U.S. with 10.57%, and South Korea with 6.8%.
In line with worse performance of the sector, listed steel firms recorded poor performances last year.
Hoa Sen Group
Hoa Sen Group, Vietnam's leading steel sheet producer, recorded a post-tax loss of VND680.23 billion ($28.99 million) in the last quarter of 2022, versus post-tax profit of VND638.32 billion ($27.2 million) in Q4/2021, according to the firm’s financial report.
The corporation, listed on the Ho Chi Minh Stock Exchange (HoSE) as HSG, posted a revenue VND7,917 billion ($337.38 million) in Q4/2022, down 53% year-on-year.
HSG clarified the fall in post-tax profit was due to the drop in gross profit, as a result of the decrease in gross profit margin.
Nam Kim Steel
Nam Kim Steel, another major steelmaker in Vietnam (HoSE: NKG), made a loss of VND66.7 billion ($2.84 million) in 2022, its first loss in 10 years, with net revenue reaching VND23,071 billion ($983.8 million), down 19% year-on-year.
The firm's most recent loss was more than VND105 billion ($4.48 million) in 2021.
Its net revenue in Q4/2022 was VND4,299 billion ($183.3 million), a 51% drop against the same period in the previous year, while profit after tax was negative VND356.3 billion ($15.19 million).
Vnsteel
Vietnam Steel Corporation (Vnsteel), a leading steelmaker, reported a loss of VND822 billion ($35 million) in 2022, while its profit hit VND859 billion ($36.63 million) the previous year.
The company, on the unlisted public company market UPCoM as TVN, recorded revenue of VND38,732 billion ($1.65 billion), down 5% year-on-year, according to its Q4 consolidated financial statement.
Notably, its joint ventures and associates posted a loss of VND734,800 billion ($31.33 million) in 2022, while 2021 saw a profit of VND155.7 billion ($6.64 million).
Hoa Phat Group
Hoa Phat Group, the largest Vietnamese steelmaker, recorded a post-tax profit of VND8.4 trillion ($358 million) in 2022, down 76% year-on-year.
For Q4/2022, it reported a post-tax loss of VND2 trillion ($85.29 million), worse than the Q3/2022 loss of VND1.79 trillion ($76.33 million), according to its financial report.
For the whole 2022, the group (HoSE: HPG) posted a revenue of VND142 trillion ($6.06 billion), falling 5% year-on-year, after recording a Q4 revenue of VND26 trillion ($1.11 billion), down 42%.
Thai Nguyen Iron And Steel JSC
Thai Nguyen Iron And Steel JSC, (UPCoM: TIS), saw a post-tax loss of VND9.46 billion ($403,100) in 2022, versus a post-tax profit of VND122.41 billion ($5.22 billion) a year ago.
The firm's revenue decreased to VND11,697.21 billion ($498.45 million) in 2022 from VND12,850 billion ($547.57 million) in 2021.
Domestic steel demand is expected to continue falling due to the stagnant real estate market and tightened monetary policy, according to Vietnam's leading broker SSI Securities.
Citing data from the Ministry of Construction, SSI Research said that the number of apartments licensed for construction in the first three quarters of 2022 plunged by 41% year-on-year. In addition, the implementation of backlogged projects may also be delayed as investors are facing liquidity problems.
The brokerage house believed that the domestic demand for finished steel products may suffer a single-digit decline in 2023. However, the acceleration of public investment may help offset some of the reduced steel demand from households.
- Read More
Posco keen on investing in Vietnam's $2.2 bln LNG power project
South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.
Energy - Thu, November 21, 2024 | 10:42 am GMT+7
Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta
The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.
Industries - Thu, November 21, 2024 | 10:31 am GMT+7
Vietnam startup expert closes Monkey in Black coffee shop
Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.
Companies - Thu, November 21, 2024 | 8:16 am GMT+7
Vietnam-Singapore ties set for elevation to comprehensive strategic partnership
Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.
Politics - Wed, November 20, 2024 | 8:16 pm GMT+7
Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders
Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.
Companies - Wed, November 20, 2024 | 6:17 pm GMT+7
E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam
E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.
Finance - Wed, November 20, 2024 | 5:37 pm GMT+7
Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec
In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.
Companies - Wed, November 20, 2024 | 3:52 pm GMT+7
Central Vietnam province okays $88 mln automobile part project
Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.
Industries - Wed, November 20, 2024 | 3:44 pm GMT+7
Thai packaging firm Thantawan Industry makes inroad into Vietnam
Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.
Industries - Wed, November 20, 2024 | 3:34 pm GMT+7
Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC
Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.
Companies - Wed, November 20, 2024 | 2:29 pm GMT+7
Pegatron to quadruple workforce at $800 mln project in Vietnam
Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.
Industries - Wed, November 20, 2024 | 2:03 pm GMT+7
Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park
WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.
Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7
Indonesia, Brazil sign cooperation deals worth $2.65 bln
Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.
Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7
Nusantara not yet feasible as Indonesia’s capital city: authorities
Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.
Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7
Malaysia’s Halal industry to make up 10.8% of GDP by 2030
Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).
Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7
Thailand takes more fiscal measures to sustain growth momentum
The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.
Southeast Asia - Wed, November 20, 2024 | 11:46 am GMT+7