Hoa Phat with the dream of Top 20 steel industry in the world

Hoa Phat Group is currently the largest steel enterprise in Southeast Asia, with an output of over 8 million tons/year. From 2025, Hoa Phat's capacity will increase to 14 million tons/year when new projects come into operation.

Hoa Phat Group is constantly striving to become the leading steel manufacturer in Southeast Asia.

Think big, do big "Small-scale and outdated production will soon be crushed. My wish is that after 5-10 years, Hoa Phat will be in the Top 20 largest steel producers in the world." That was the sharing of billionaire Tran Dinh Long, Chairman of Hoa Phat Group at the 2024 General Meeting of Shareholders, which took place in April this year. To achieve this dream, Hoa Phat's journey started about 30 years ago. At that time, Vietnam was not yet present on the world steel map. Striving tirelessly, by 2021, Hoa Phat Group had entered the Top 50 largest steel producers in the world. Vietnam has also become the largest steel producer in ASEAN with an output of about 20 million tons/year, especially with a manufacturing steel and high-grade steel industry. Starting with steel, steel revenue and profit currently account for 80-90% of the Group's total revenue. Billionaire Tran Dinh Long could not hide his pride when showing off Hoa Phat's facilities with current output of over 8 million tons/year, and over 32,000 employees. After initial success with the Iron and Steel Complex in Hai Duong, Hoa Phat continues to make strong strides in the steel industry when expanding investment in Dung Quat. Hoa Phat Dung Quat 1 Iron and Steel Complex is built on an area of ​​304 hectares, with a capacity of 5.6 million tons of steel/year, with an investment capital of over 3 billion USD, and is performing very well in production. Currently, Dung Quat 2 Project has a total investment of VND 85,000 billion, a design capacity of 5.6 million tons/year of high-quality hot-rolled coil (HRC), is in the preparation stage for phase 1 operation in early 2025 and will increase to 14 million tons/year when fully completed in 2026. When Dung Quat 2 Project is put into stable operation, Hoa Phat's annual revenue will be from VND 150,000 to 250,000 billion, contributing to the state budget about VND 15,000 - 20,000 billion/year. If considered on the world steel map, this output of 14 million tons/year is in the Top 30 largest steel enterprises. However, for billionaire Tran Dinh Long, that is not the destination and Phu Yen continues to become the new target of Hoa Phat, with a plan to invest in a new complex project, tentatively called Dung Quat 3 Project, with a scale of 5 billion USD. With a capacity of 20 million tons of steel/year when Dung Quat 3 is completed as planned, Hoa Phat will be in the Top 20 largest steel producers in the world, surpassing steel producers from the US, Russia, Germany, Brazil, and many Chinese steel producers and standing on par with Hyundai of Korea. Working hard, needing new and fast ways Affirming that Hoa Phat must work hard and is researching the production of high-quality products such as silicon steel or specialized rail steel for high-speed trains..., Mr. Long also said that in order for the business community to develop more strongly, it needs support through removing institutional and policy problems. Accordingly, the Government, ministries, departments and branches need to soon have specific policies, support and protect domestic production reasonably and legitimately according to Vietnamese and international regulations so that businesses can feel secure in investing. "If Vietnam wants to have large enterprises like Pohang and Posco of Korea, the Government needs to have special and specific policies to nurture large enough enterprises," Mr. Long commented and hoped that "in the planning and development strategy of the steel industry, there will be specific measures to nurture and develop large steel production enterprises. At that time, the supporting industry will also develop, limiting dependence on imported goods." In 2024, Hoa Phat will pursue an anti-dumping lawsuit against hot-rolled coil (HRC) steel products. Businessman Tran Dinh Long frankly said that, looking at it objectively and fairly, no country in the world accepts the situation where the amount of imported steel is larger than the amount of domestically produced steel. "There is no reason for us to spend 7 billion USD without protection, we would rather invest in real estate," Mr. Long emphasized. Also related to removing difficulties for businesses, the head of Hoa Phat said that it is necessary to quickly approve related plans such as seaports, because they affect many industries and fields. Particularly for Hoa Phat, which needs to load and unload 70 million tons/year, if the ports are not built according to the plan, it cannot operate effectively. Any delay will cause damage to businesses and people. Or like the proposal of the Vietnam Steel Association (VSA) on technical standards for steel products, which has been proposed for 10 years and has not been completed. Therefore, Mr. Long said that in order for the country to develop and for production and business activities to be better, it is necessary to especially remove institutional policies. According to this billionaire, laws are made by people and can be adjusted. This needs to be done faster, faster and faster, because if done quickly, it will be very beneficial for businesses to promote their capacity. Source: https://baodautu.vn/hoa-phat-voi-giac-mo-top-20-nganh-thep-the-gioi-d227126.html