Steel giant targets 30 pct growth in profits

By Anh Minh   January 24, 2021 | 09:00 am GMT+7
Steel giant targets 30 pct growth in profits
A man works at Hoa Sen steel mill in Vietnam. Photo by VnExpress/Phuong Dong.
Hoa Sen Group has announced it targets 30 percent growth in post-tax profits this year to VND1.5 trillion ($65.2 million).

It aims to increase revenues by 20 percent to VND33 trillion and steel production by 11 percent to 1.8 million tons.

It also plans to set up a supermarket chain, Hoa Sen Home, to sell building materials and furniture, and have 1,200 of them around the country in the next three-five years, when it targets $3 billion in revenues and VND3 trillion ($130 million) in profits.

The company’s results are seen as a bright spot in the steel industry, which is suffering from unprecedented difficulties due to the pandemic, with raw material prices becoming volatile, steelmakers facing trade disputes with export markets and the domestic market becoming intensely competitive.

According to the Vietnam Steel Association, in 2020, Hoa Sen was the leading steel sheet manufacturer with a 34 percent market share. It accounted for 17 percent of the galvanized steel pipe market, behind only the country’s biggest producer of construction steel, Hoa Phat Group.

Hoa Sen also remained the third biggest plastic pipe manufacturer.

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