Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Vietnamese steelmaker Hoa Sen Group (HSG) targets to produce 1.8mn mt steel in 2021, up by 11pc from a year ago, announced the company at its annual meet. HSG produced 1.622mn mt of steel in 2020, up 9pc from 2019, and 8pc higher than planned production for the year, despite disruptions caused by the COVID-19 pandemic.


In FY2021, HSG aims to raise its revenues by 20pc to VND33,000bn ($1.43bn) and PAT to 1,500 billion, an increase of 30pc from 2020. The company aims to become a market leader in the corrugated iron, steel pipes, plastic pipes and building materials distribution and furniture segments in the domestic market and the ASEAN region.


The company plans to develop a retail chain of furniture and building materials and collaborate with suppliers to diversify products mix. HSG will also focus on promoting the Hoa Sen brand and the adoption of IT technologies to reduce operating costs and improve operations.


In 2020, HSG increased its market share in galvanized steel sheet segment to 34pc, according to Vietnam Steel Association data. In steel pipes, the company is the second-leading producer with 17pc share, while it is third leading producer and trader of plastic pipe in Vietnam. The group’s strategies helped achieve revenues of VND27,531bn in 2020, which meets 98pc of its planned target, and PAT of VND1,153bn, up by 219pc from 2019, despite volatile raw steel prices, safeguard measures and tariffs in export markets and stiff competition in the local market. 

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