Vietnam's steel industry will see 'turning points': Hoa Phat CEO

The U.S. imposition of tariffs will not directly affect Vietnam's steel industry, while the industry is expected to record turning points as demand for infrastructure development surges, said Nguyen Viet Thang, CEO of Hoa Phat Group.

"The U.S. tariffs will not directly affect our industry as we have already been subject to the Section 232 levy for several years," Thang told a talkshow named The Financial Street on VTV8.

"The U.S. will not impose additional tariffs on businesses that have been subject to the Section 232," he added.

Section 232 of the Trade Expansion Act of 1962 authorizes the president of the United States to adjust the imports of goods or materials from other countries if the quantity or circumstances surrounding those imports are deemed to threaten national security. This can be done through tariffs or other means.

Thang noted that some of the U.S.'s allies that were exempted from the steel tax under Section 232 such as Japan and South Korea have recently been subject to Section 232.

"But the new U.S. imposition of reciprocal tariffs can affect domestic steel demand, and that will exert impact on us. Moreover, for economies with large openness like Vietnam, there will be impact on exchange rates," he noted.

The State Bank of Vietnam currently has operations to ensure that the exchange rate does not fluctuate too much and the exchange rate's stability has greatly supported businesses in the steel industry, especially Hoa Phat, Thang added.

The Hoa Phat Group CEO highlighted that if Vietnam maintains an economic growth rate of about 8% this year and 10% from 2026, the demand for infrastructure will be "very high", helping the steel industry grow. Hoa Phat aims to grow by about 15% per year in the next 5 years.

Regarding the domestic market, Thang said Hoa Phat will continue to maintain its market share, and continue to develop high-quality products to serve the processing and manufacturing industry. The company is also expanding to new overseas markets.

"Our view is to expand in many markets, not focusing on one market that is too large to avoid trade defense barriers. Currently, we are exporting to about 40 countries in the world and maintaining a moderate proportion in each country," said the executive.

Previously, at the 2025 AGM, Hoa Phat's chairman Tran Dinh Long said that although the U.S. has temporarily postponed the imposition of reciprocal tariffs for 90 days, the world economy will basically have many turbulences.

Hoa Phat's spirit is to work methodically and carefully, and be prepared for many possibilities, he told shareholders.

Long said that in 2025, the group completed phase 1 of the Dung Quat 2 factory in Quang Ngai province, based on which there will be new products.

"Many shareholders at the 2024 AGM were worried about foreign steel flooding the Vietnamese market, but shareholders can rest assured that Hoa Phat will still sell all its products," said Long.

He noted that in Q1/2025, the group's revenue reached VND37,000 billion ($1.42 billion), an increase of 19% over the same period last year.

Net profit was VND3,300 billion ($126.9 million), up 15%. This is the highest quarterly profit since Q2/2022.

In 2025, the group plans to achieve a target revenue of VND170,000 billion ($6.54 billion), up about 21% compared to 2024's actual figure, and a record high.

The target for 2025 profit after tax is VND15,000 billion ($576.8 million), an increase of nearly 25% compared to 2024.

Hoa Phat Group's HPG shares closed Tuesday, the last trading day before Vietnam's five-day holiday, at VND25,500 ($0.98) apiece.