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Hoa Sen Group opens second phase at Nhon Hoi factory

Released at: 17:14, 19/04/2019 BUSINESS SPOTLIGHT

Hoa Sen Group opens second phase at Nhon Hoi factory

At the opening ceremony of Hoa Sen Nhon Hoi factory's second phase (Photo: Hoa Sen Group)

Binh Dinh factory's new phase put into operation on April 19.

by Nguyen Manh

The Hoa Sen Group opened the second phase of its Nhon Hoi factory in the south-central province of Binh Dinh on April 19, raising total capacity to 430,000 tons of corrugated steel products per year in the hope of meeting demand for the products in the central region and central highlands and for export.

In this second phase, the factory was fitted out with modern production lines imported from Germany and Austria.

With a strictly-supervised production process, from raw materials to finished products, the factory’s output meets all international standards required by domestic and export markets.

On the same day, 5,000 tons of the Hoa Sen Group’s galvanized steel coil  made at Nhon Hoi were shipped to Malaysia via the nearby Quy Nhon Port.

Hoa Sen Group marks export of  5,000 tons of galvanized steel coil to Malaysia (Photo: Hoa Sen Group)

The steel industry has experienced a very difficult period over the last year, facing major challenges from markets, with hot rolled steel prices fluctuating unpredictably.

According to a report from the group, which holds the largest share in the domestic galvanized steel sheet market and the second-largest share in steel pipes, it has been facing a range of difficulties and obstacles. Market movements, however, were forecast early and it was able to cope with all circumstances. One of its strategies is to stand firm on both “legs”: domestic consumption and export. The group’s exports have continuously seen breakthroughs over recent years.

Apart from long-standing markets, the group has also expanded its exports to new markets, especially in the Americas, Europe, and Africa, increasing export volumes and turnover each year.

The Hoa Sen Group is now the leading steel sheet exporter in Southeast Asia, with products available in more than 75 countries and territories.

It has always treated its marketing strategy seriously. While expanding to new markets, it tries to diversify and protect existing markets and has achieved positive results in maintaining key export destinations such as Australia, Indonesia, and Malaysia.

On March 13, Malaysia’s Ministry of International Trade and Industry (MITI) issued a final decision on an anti-dumping lawsuit on imported galvanized steel products from Vietnam and China. Anti-dumping tariffs on products from Hoa Sen are zero per cent, with a dumping margin of -3.34 per cent. Hoa Sen was the only enterprise from Vietnam to be exempted from tariffs on its iron and steel roll exports to Malaysia. Thanks to this advantage, on April 19 it announced it would export 5,000 tons of steel to Malaysia, produced at its Nhon Hoi factory.

Group representatives said the wave of trade protection in certain countries has created many difficulties for exporters, but the FTAs Vietnam has signed have also opened up many opportunities for its businesses.

Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect in the first seven of the eleven member countries - Australia, Canada, Japan, New Zealand, Mexico, Singapore, and Vietnam - the future for Vietnamese steel exporters has become more optimistic. On the first day of the lunar new year 2019, in early February, the Hoa Sen Group signed an export contract with Mexico for 4,300 tons of steel worth about $3.7 million. A total shipment of 15,000 tons of Hoa Sen steel worth $12 million will be exported to Mexico this year, opening up many positive prospects for the group.

Analysts predict the steel market will face a tough 2019. The advantage, though, belongs to enterprises that possess long-term experience, vision and determination, such as Hoa Sen.

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