Steelmaker Hoa Phat Group targets US$2.42 billion in revenue
Steelmaker Hoa Phat Group targets revenue of VND55 trillion (around US$2.42 billion) and after-tax profit of VND8.05 trillion (US$354.6 million) in 2018.
Hoa Phat’s management board chairman Tran Dinh Long said the group sees 2018 as a crucial year. The firm would take drastic measures to ensure the progress of the Hoa Phat Dung Quat steel and iron production complex and make it the priority target for this year, Long said.
The group would implement many big projects this year in their main steel business. In addition, it would be alert for changes in the material market. In other sectors such as agriculture, construction equipment and interiors, Hoa Phat would continue to maintain its market share.
Tran Tuan Duong, Hoa Phat’s general director, said there was no steel firm in Vietnam as competitive as Hoa Phat. With a low rate of investment and a competitive price, Hoa Phat can directly compete with big firms around the world, he said.
Speaking on the progress of the Hoa Phat Dung Quat steel and iron production complex, Duong said the group had begun installing the first long steel rolling equipment, building a deep water port and undertaking other constructions. Hoa Phat employed around 3,000 workers for the project, providing training at its complex in the northern province of Hai Duong.
Last year, Hoa Phat notched a record high business result in its 25 years of operation despite instability in the global and national economies.
Its accumulated revenue in 2017 reached VND46.8 trillion (some US$2 billion), posting an increase of 38 percent year-on-year. After-tax profit also hit a record high to reach VND8 trillion (US$352.4 million), surpassing the set target by 33% and increasing 21% over the previous year.
The group’s steel business played the key role, contributing some 90 percent of its total revenue and after-tax profit.
Hoa Phat last year exported some 200,000 tonnes of steel products. They included 161,000 tonnes of steel bars and rolled steel to the US, Canada, Australia, Malaysia and Cambodia.
With its positive business results, the group contributed VND5 trillion (US$220 million) to the State budget in 2017, an increase of 40% from 2016.