Hoa Phat Group accelerates large investments in home appliance production to catch the wave of production shift from China to Vietnam

In the third quarter of 2021, Hoa Phat Group achieved VND38.9 trillion in revenue, posting 56 per cent year-on-year increase. Its after-tax profit for the first time reached VND10.3 trillion, 2.7 times higher than the same period last year. Hoa Phat Group has invested in the factory system with the goal of catching up with the wave of transition from China. It also targets to become the leading brand name in refrigeration and home appliance industry in Vietnam while enhancing exports.

Hoa Phat Group accelerates large investment in the production of refrigeration and home appliance

Hoa Phat Group is operating and contributing to the State budget in 25 provinces and cities across the country. In the first 9 months of the year, Hoa Phat Group contributed VND8.1 trillion to the State budget, 11 per cent higher than the whole amount in 2020. In the 9-month period, Hoa Phat Group recorded a revenue of more than VND105.8 trillion and after-tax profit of VND27.1 trillion, increasing by more than 60 per cent and 200 per cent respectively over the same period in 2020. Its after-tax profit in January-September period surpassed 45 per cent of the whole year’s set target.

From the fourth quarter of 2021, Hoa Phat Group established Hoa Phat Home Appliances Joint Stock Company, making a large and methodical investment in the home appliance industry on the basis of its 20 years of experience in developing the refrigeration industry. In addition to the rapid deployment of new factories, Hoa Phat Group prioritizes research and development of refrigeration products, modern design for home appliance, good quality and competitive price in comparison with imported goods, meeting international standards to further promote exports.

After restructuring, Hoa Phat Group now operates in five sectors including Iron and steel (construction steel, hot rolled steel); Steel products (including steel pipes, galvanized steel, wire rod steel, prestressed steel); Agriculture; Real Estate and home appliances.

Hoa Phat Group’s organizational structure since September 2021

With a crude steel capacity of 8 million tonnes a year, Hoa Phat Group is the largest steel producer in Vietnam as well as in Southeast Asia. The group is in the Top 15 steel producers with the largest capitalization in the world. In the past 9 months of the year, Hoa Phat Group achieved crude steel output of 6.1 million tonnes, up 50 per cent over the same period last year. Its sales volume of steel products reached 6.3 million tonnes, posting 43 per cent year-on-year increase. In which, construction steel was 2.8 million tonnes, increasing 12 per cent from the corresponding period last year. Its hot rolled coil (HRC) reached nearly 2 million tonnes. Hoa Phat Steel Sheet company recorded 273,000 tonnes, 2.6 times higher than the same period last year. The sale of steel pipe products were 498,000 tonnes, down 12 per cent compared to the same period last year.

Hoa Phat takes the No 1 market share in Vietnam for construction steel, steel pipes and Australian beef sales in Vietnam. In addition, Hoa Phat's clean chicken eggs are currently taking the lead the Northern market with an output of about 800,000 eggs a day. The feed and pig farming sectors also have certain contributions to the group’s overall results. The group's real estate sector is focusing on expanding existing industrial parks, and at the same time researching and investing in a number of housing projects and service urban areas.

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