Vietnam's steel giant Hoa Sen debuts new retail subsidiary as it bets on domestic demand

Hoa Sen Group (HoSE: HSG), one of Vietnam’s largest steel producers, has carved out its building materials and home furnishings retail business into a new subsidiary, Hoa Sen Home, as the steelmaker shifts focus toward the domestic market amid continued volatility in exports.

HSG owns 99% of Hoa Sen Home JSC, which was incorporated on January 5 with charter capital of VND1 trillion ($38 million). The company is headquartered in Thu Duc ward, Ho Chi Minh City, and will manage and expand the Hoa Sen Home nationwide retail network.

Hoa Sen Home (HSH) has been operating since 2021 and is positioned as a large-scale distributor of construction materials and interior products, selling items ranging from steel and galvanized sheets to tiles and sanitary ware. The network currently includes 12 distribution hubs, more than 400 retail outlets, and over 140 supermarket-format stores nationwide.

At the launching ceremony on Monday, HSH representative said the company plans to expand to 165 supermarkets in 2026 and at least 300 by 2030, including large “Mega Home” stores with floor space of up to 30,000 square meters each. Management said the long-term goal is to build a leading national retail platform for construction materials and interiors.

In 2024-2025, HSH recorded revenue of more than VND15.9 trillion ($605.39 million). It is targeting sales of VND18.4 trillion ($700.58 million) in 2026 and expects the business to eventually reach annual revenue of over $1 billion. The group is also considering an initial public offering (IPO) of Hoa Sen Home when market conditions allow, the representative added.

To support expansion, Hoa Sen Home, at the event, signed cooperation deals with technology firms including Alibaba and Salesforce, as well as other domestic and international partners, to improve digital operations and supply chain efficiency.

The company also signed an agreement with the HCMC Trade Union to support the development of 20,000 social housing units for workers between 2026 and 2030, as part of a broader push to align its retail and distribution capabilities with urban development needs.

Recently, Hoa Sen Group has approved the establishment of Hoa Sen Hai Phong One Member Limited Liabilities Company (HSHP), a wholly-owned subsidiary with charter capital of VND300 billion ($11.39 million).

HSHP’s headquarters will be located at Lot CN21-01 in the Nam Dinh Vu Non-Tariff Zone and Industrial Park (Zone 1), within the Dinh Vu-Cat Hai Economic Zone in Hai Phong city, northern Vietnam, according to the disclosure last Friday.

Its primary business will be the production of iron, steel and pig iron. The company has also registered a wide range of additional activities, including forging, pressing, stamping, and rolling of metals, and powder metallurgy; transportation support activities; intermediary services for freight transportation; and wholesale of metals and metal ores.