Hoa Phat targets nearly 15 million tons of steel in 2026

Hoa Phat aims to produce nearly 15 million tons of steel in 2026. This is an increase of about 40% compared to last year and is their highest goal ever, thanks to the smooth operation of the Dung Quat 2 Steel Integrated Complex.

Ms. Pham Thi Kim Oanh, Chief Financial Officer of Hoa Phat Group (HPG), shared this at an investor meeting during the Emerging Vietnam 2026 Conference.

This information was shared by Ms. Pham Thi Kim Oanh, Chief Financial Officer of Hoa Phat Group (HPG), at an investor meeting during the Emerging Vietnam 2026 Conference, which was held by Ho Chi Minh City Securities Corporation (HSC) last weekend in Ho Chi Minh City.

The question-and-answer part for Hoa Phat got a lot of questions from both local and foreign investment funds, focusing on sales outlook, profit margins, getting ready for emission rules, and plans to join big infrastructure projects.

What is the basis for Hoa Phat to set a goal of nearly 15 million tons of steel this year?

In 2025, Hoa Phat sold 10.6 million tons of steel, passing the 10-million-ton mark for the first time. In 2026, the goal is raised to nearly 15 million tons, and the extra amount is mostly hot-rolled coil (HRC) steel from Dung Quat 2 after all the production lines run steadily, which is expected to add another 3 to 4 million tons. On average each month, Hoa Phat supplies the market with about 1.2 million tons of hot-rolled coil, construction steel, and high-quality steel.

How is the steel market demand doing?

The demand for construction steel is being helped by the recovery of infrastructure, transportation, housing, and construction projects across the country. Thanks to this, Hoa Phat's sales volume has been growing continuously. May alone continued to see positive results, bringing the total construction steel volume for the first 5 months of the year to 2.3 million tons.

International groups like the World Bank (WB) and the Asian Development Bank (ADB) both predict that Vietnam's GDP will grow around 7% this year. Based on that growth, Hoa Phat's steel sales volume is expected to increase by an average of 10% each year.

Domestic steel prices have gone up again from their lowest point in many years. Is Hoa Phat under pressure to keep building material prices stable?

Over 70% of Hoa Phat's production materials must be imported, so the selling price of steel depends mostly on how material prices change in the world market. Currently, coking coal prices are at 240 USD/ton, which is almost twice as high as the period before the Russia-Ukraine conflict, while 62% Fe iron ore prices stay around 104 USD/ton. When material prices go up, the final steel prices must be adjusted to match.

The Group's net profit margin in 2025 was at 9%, and this year it is expected to stay at 9-10%. This shows that the price increase reflects input costs rather than aiming to expand profits. Besides, the large-scale, closed production chain along with the deep-water port system at Dung Quat - which can receive ships up to 200,000 DWT - helps Hoa Phat lessen the impact of changing goods prices and optimize shipping costs.

How were the Group's business results in the first quarter compared to the full-year plan?

In 2026, Hoa Phat set a plan for 210,000 billion VND in revenue and 22,000 billion VND in profit after tax. This equals a net profit margin of 9-10%, which is similar to 2025. In the first quarter alone, the Group recorded more than 53,300 billion VND in revenue and 9,056 billion VND in profit after tax. These are increases of 40% and 170% respectively compared to the same period last year, completing 41% of the full-year profit plan. 

How does the anti-dumping tax policy on imported HRC affect the Group's sales?

The anti-dumping tax on HRC imported from China and India only applies to goods sold in the domestic market to protect local production; companies importing HRC to make export goods do not have to pay this tax. In reality, Hoa Phat's domestic HRC sales volume has increased clearly, thanks to both the trade defense policy and the new supply from Dung Quat 2. With a capacity of 9 million tons of HRC per year, the Group expects to fill up its capacity in the next 1-2 years.

What does the first newly published Group-level Sustainability Report mean for Hoa Phat?

In 2026, Hoa Phat published its first Sustainability Report at the Group level, with greenhouse gas tracking data following ISO standards, verified by the BSI organization. The steel production complexes at Hoa Phat Hai Duong and Dung Quat recycle all of their production water, and the internal power generation system supplies 90% of their electricity needs. Based on that foundation, some international financial organizations have shown interest in giving green loans and sustainability loans to Hoa Phat, setting the stage for future international fundraising plans.

For the export market, the sustainability report is the basis to meet the emission reporting rules of countries and regions, including the EU. Currently, all steel products exported to the European market have fully completed their emission reporting duties as required. Locally, the Group has also finished reporting its greenhouse gas emissions according to current rules and aims to take a leading role in emission reduction programs for the steel industry. 

How does Hoa Phat plan to expand its steel segment after 2027?

Hoa Phat is currently the largest steel maker in Southeast Asia with a capacity of 16 million tons of crude steel per year. By 2027, the capacity is expected to rise to 18 million tons, including 9 million tons of HRC and 9 million tons of long steel (construction steel and high-quality steel coils). This extra amount will come from a 700,000-ton electric arc furnace steel factory in Long An and the expansion of current factories. The electric furnace was chosen for the Southern region because this area does not have advantages in iron ore and coal but has plenty of scrap metal, while also fitting the Group's plan to lower carbon emissions. For the period further out, the Group is also processing paperwork to invest in building the Hoa Phat Phu Yen Steel Integrated Complex project in Dak Lak province.

In terms of products, the Group is growing in both variety and depth, increasing the share of high-quality steel types, which now make up over 60% of production. These products serve mechanical engineering, car manufacturing, shipbuilding, oil and gas, steel structures, and energy. Hoa Phat is also the only Vietnamese business that has invested in and can produce hot-rolled coil steel. The steel rail and special steel factory at Dung Quat is being sped up, with products expected to come out in the second quarter of 2027 to serve major railway projects in Vietnam and for export to international markets.

What opportunities does joining the Red River scenic boulevard axis project bring to Hoa Phat?

Hoa Phat is taking part in several large infrastructure and urban projects following the State's policy, including the Red River scenic boulevard axis project in Hanoi. This is done with a spirit of contributing to key national works during a period when the country is stepping up infrastructure investment.

Regarding resources, the urban areas in the project will be built step-by-step. The money earned from sections finished first will be rolled over to invest in the next parts, so it does not create a heavy cash demand all at once. The profit margin for this segment is not high but stays steady, creating a reliable cash flow. Even so, real estate is expected to make up a maximum of 30% of total revenue and profit; steel remains the core business of Hoa Phat.

 

Emerging Vietnam 2026 is the 12th annual investment conference held by HSC, taking place from June 10 to 12, 2026, in Ho Chi Minh City. It brings together more than 300 domestic and foreign investors, global investment funds, investment banks, and over 50 leading Vietnamese enterprises.