Overview of Hoa Phat Steel’s Impressive Growth
In December 2020, Hoa Phat construction steel achieved remarkable results, producing a total output of 329,000 tonnes. This figure represents a growth of 12 percent compared to the same period the previous year. A significant portion of this output, approximately 59,000 tonnes, was dedicated to exports, showcasing a stellar 48 percent increase year-on-year. The company’s strong sales also included 90,000 tonnes of steel billets, solidifying Hoa Phat’s position as the leading steel manufacturer in Vietnam with a notable 33 percent market share, marking a 6.8 percent rise from the previous year.
Record Sales in 2020
For the first time in its history, Hoa Phat steel reached a record sale of over 5 million tonnes throughout the year. This figure includes 3.4 million tonnes of finished construction steel, reflecting an impressive growth of 22.5 percent compared to last year. Additionally, the company supplied 1.7 million tonnes of steel billets to both domestic and international markets, along with nearly 700,000 tonnes of hot-rolled coil (HRC). Of this, 171,000 tonnes were sold in December alone, highlighting the company’s strong market presence and efficient production capabilities.
Regional Performance Amid Challenges
The Southern region of Vietnam recorded exceptional performance, with an output of 784,000 tonnes, reflecting a remarkable 70 percent increase from the previous year. In the Central region, despite facing challenges from the COVID-19 pandemic and adverse weather conditions, sales showed slight growth compared to 2019. The Northern region, however, dominated the numbers, contributing a significant 48 percent of the total finished steel sold by Hoa Phat construction steel, illustrating the regional strengths in demand and consumption.
Contribution to Major Infrastructure Projects
Hoa Phat construction steel has been a key player in various major infrastructure projects across Vietnam, supplying materials for significant developments such as the Metro Nhon-Hanoi Railway Station, Ring Road 3 (Mai Dich – South Thang Long section), and the North-South Expressway. The company’s products have been vital for the improvement projects of Noi Bai International Airport and Tan Son Nhat, among others. This involvement in essential projects underscores Hoa Phat’s role in supporting national development and infrastructure growth.
Expanding Export Markets
The export of finished steel reached an impressive nearly 540,000 tonnes, doubling from the previous year. Hoa Phat’s construction steel products found markets in Japan, South Korea, Canada, Australia, and several Southeast Asian countries, including Cambodia, Laos, and Malaysia. Additionally, the Group exported 1.7 million tonnes of square billets for construction steel production, with notable exports to Thailand, China, and Sri Lanka. China’s demand for steel billets surged dramatically, reaching a level 12 times that of 2019, further showcasing the company’s growing international presence.
Future Projections and Production Targets
As demand continues to rise, the number of orders for Hoa Phat’s hot-rolled coil (HRC) products has surged, exceeding 300 percent of its production capacity. In 2020 alone, the HRC output at the Hoa Phat Dung Quat Iron and Steel Production Complex reached nearly 700,000 tonnes. Looking ahead, Hoa Phat Group has set an ambitious target of 2.7 million tonnes of HRC for 2021, aiming to support steel pipe, galvanized steel pipe, and other mechanical engineering industries. This proactive approach not only serves domestic needs but also facilitates an increase in exports, enhancing the steel industry in Vietnam comprehensively.
Nghi Tran