Vietnam steelmaker Pomina targets fourfold revenue increase in 2026 on Vingroup ecosystem demand

Vietnamese steelmaker Pomina targets revenue of VND8.51 trillion ($323.4 million) in 2026 and VND13.19 trillion in 2027, respective nearly fourfold and sixfold increases year-on-year, as the company seeks to revive operations with support from the Vingroup ecosystem.

The targets were approved at the company's 2026 annual general meeting of shareholders on Tuesday.

The 2026 goal marks an ambitious turnaround after Pomina reported net revenue of just VND2.21 trillion ($83.95 million) in 2025, according to its audited consolidated financial statements.

Construction steel output is projected at 643,750 tons in 2026, rising to 997,500 tons in 2027.

Rather than setting conventional pre-tax or net profit targets, Pomina will use EBITDA (earnings before interest, taxes, depreciation and amortization) as its primary performance indicator. It expects EBITDA to reach VND474 billion ($18.01 million) in 2026 before almost doubling to VND941 billion in 2027.

Recovery plan backed by Vingroup demand

CEO Do Tien Sy said the targets are based not only on expectations of a recovery in Vietnam's steel market but, more importantly, on anticipated demand from companies within the ecosystem of Vingroup, the country's largest private conglomerate, as well as Pomina's traditional customer base.

According to its 2025 audited financial statements, Pomina signed a cooperation agreement with Vinhomes, under which the property developer will provide financial support for the steelmaker's operations over a two-year period beginning in 2026. The funding is intended to strengthen working capital and support the gradual restoration of production.

Pomina's Q1/2026 financial statements also show the company has begun supplying steel to projects within the Vingroup ecosystem.

The leader said Pomina is currently supplying steel for Vinhomes developments through the VinMetal steel plant in the central province of Ha Tinh, as well as for VinFast projects and other developments from Nha Trang southward, including the Can Gio Bridge project being developed by VinSpeed in Ho Chi Minh City.

Responding to shareholders, Sy said demand from Vingroup-affiliated projects, together with Pomina's traditional markets, forms the basis of the company's production and revenue targets for 2026 and 2027.

Long-term cooperation beyond 2027 remains uncertain

Despite the ambitious targets, Pomina's leadership acknowledged that its recovery will be gradual after several years of financial difficulties.

Board member Do Xuan Chieu said construction of the company's blast furnace project was delayed by the Covid-19 pandemic, which disrupted equipment deliveries, installation work and the deployment of foreign specialists. Subsequent turmoil in Vietnam's corporate bond market and tighter credit conditions left the company short of working capital, forcing it to suspend most production from late 2022.

Alongside restarting production, Pomina, is listed on the Unlisted Public Companies Market (UPCoM) as POM, is continuing to restructure its finances. He said several banks have agreed in principle to waive interest payments during the restructuring period, a move expected to improve the company's financial position.

Asked by a foreign shareholder about the prospects for long-term cooperation with Vingroup, Sy said the current agreement covers only 2026-2027 and no roadmap has been established for extending the partnership. Any continued financial support or preferential procurement by Vingroup will depend on future negotiations between the two sides.

Compared with previous years, when Pomina's recovery strategy relied largely on securing a strategic investor, the company now has a more concrete plan backed by Vingroup's financial support, demand from its ecosystem, and Pomina's established customer base.

Whether Pomina can achieve its goal of nearly quadrupling revenue in 2026, however, will depend on the successful restart of production at its Pomina 3 plant in the former Ba Ria-Vung Tau province (now part of HCMC following the 2025 administrative merger) as well as conditions in the steel market and the durability of its partnership with Vingroup beyond the initial support period.