Top 10 achievements of Hoa Phat Group in 2023

In 2023, amidst ongoing global and domestic economic challenges post-Covid, Hoa Phat Group persevered with its solid financial foundation. The group advanced with the Dung Quat 2 project, valued at over US$3 billion, while retaining its leadership in construction steel and steel pipe consumption. It optimized operations, expanded scale, enhanced its market position, and actively contributed to social welfare. Let's review the recent highlights across the group's sectors.

1. Hoa Phat was named as the largest private enterprise in Vietnam for the second consecutive year

In November 2023, Vietnam Report and VietnamNet newspaper announced that Hoa Phat Group has maintained its top position as Vietnam's largest private enterprise for the second consecutive year and ranks 8th among the country's largest enterprises. This marks the 16th consecutive year that Hoa Phat has been recognized in the VNR 500 rankings.

The VNR500 rankings annually celebrates large-scale enterprises for their resilient production and business activities amidst economic fluctuations.

With 31 years of development, Hoa Phat Group operates across five main sectors: Iron and Steel, Steel Products, Agriculture, Real Estate, and Electrical Appliances. Of which, the Iron and Steel sector, along with related products, serves as the core industry, contributing 90% of the group's revenue and profit. Hoa Phat is currently Southeast Asia's largest steel manufacturing enterprise, ranking among the Top 50 largest steel companies globally.

2.HRC reached 8 million tons, exports exceeded 1 million tons

With a current annual capacity of 3 million tons, Hoa Phat Group stands as the sole Vietnamese enterprise capable of producing hot rolled steel coils (HRC). These products adhere to rigorous Vietnamese and global standards such as JIS, MS, SAE, and BS EN. In mid-2023, Hoa Phat's HRC received CE Marking certification, facilitating its export to Europe.

The company has achieved complete mastery over production technology, conducted extensive research, and developed various product lines and steel grades to meet both domestic and international market demands. In 2023, HRC sales reached approximately their design capacity for the first time, with exports exceeding 1 million tons.

Previously, on October 24, 2023, Hoa Phat celebrated a significant milestone by producing its 8 millionth ton of hot rolled steel coil (HRC), achieving this feat over three years since the first HRC coil was manufactured in May 2020.

3. Hoa Phat Group introduced its first container products to the martket

In August 2023, Hoa Phat Container Manufacturing Joint Stock Company delivered a shipment of 100 20-foot containers to New Way Lines Company Limited. This marked Hoa Phat's first export shipment in two years following its investment in the Container Shell Factory project at Phu My II Industrial Park Expansion in Phu My Town, Ba Ria - Vung Tau Province.

Subsequently, the company supplied its first batch of containers to Vietsun and secured a new contract with New Way Lines Company for an additional 500 20-foot containers. Towards the end of the year, Hoa Phat fulfilled large orders for containers to Vinafco Shipping Joint Stock Company (VFC) and Vietnam Maritime Corporation (VIMC).

The Hoa Phat container factory boasts a total capacity of 500,000 TEU per year, focusing on popular container sizes ranging from 20 to 40 feet. Phase 1, with a capacity of 200,000 TEU per year, has already been completed and put into operation. With this capacity, Hoa Phat Group emerges as the largest manufacturer of container shells in Southeast Asia.

4. Holding onto the top spot in construction steel and steel pipes, and ranking in the top 5 for galvanized steel, while advancing high-quality steel production

With a crude steel capacity of 8.5 million tons per year, Hoa Phat stands as Vietnam's and Southeast Asia's largest steel producer. Of this capacity, 5.5 million tons are dedicated to steel billet, construction steel, and high-quality steel, with the remainder comprising HRC steel.

According to a December report from the Vietnam Steel Association, Hoa Phat commands a leading market share in construction steel (34.16%) and steel pipes (27.72%) domestically. Its galvanized steel products also maintain a strong presence, ranking in the top 5 in terms of market share in Vietnam. Internationally, Hoa Phat exports a range of steel products to 30 countries and territories across five continents.

Hoa Phat has invested significantly in deep processing and the production of high-quality steel to meet both domestic and export demands. Its complexes in Dung Quat and Hai Duong have supplied various high-quality brands such as 30MnSi, SWRH82B, SWRH62A, SWRH72A, SWRH82A, SWRH82ACr, DBIC B500B, SWRY11, and ER70S-6 to partners and customers.

Hoa Phat's high-quality steel serves as a crucial raw material for manufacturing a diverse array of products including steel bars, prestressed steel cables, car tires, elevator cables, welding rod cores, and welding wires. Notably, Hoa Phat remains the sole Vietnamese enterprise capable of producing DBIC B500B steel.

5. The launch of HPS-01 ship and inauguration of first berth at Hoa Phat Dung Quat Container Port

In early December 2023, the newly built 24,500 ton HPS-01 ship of Hoa Phat Shipping Joint Stock Company departed on its first shipment. The ship transports raw materials and finished products on inland waterways, mainly hot rolled steel coils (HRC). After putting the HPS-01 ship into operation, Hoa Phat launched the HPS-02 ship in mid-December 2023 and is expected to put it into operation in the first quarter of 2024.

In August 2023, Hoa Phat Dung Quat Container General Port put berth number 6 into operation, welcoming the first commercial ship. Hoa Phat Dung Quat Container Port project has an investment capital of over VND3.7 trillion, including 3 berths (numbers 6, 7 and 8). The expected annual loading and unloading capacity is 6 million tons of goods, capable of receiving ships of up to 50,000 DWT; the capacity of the port’s phase 1 (berth 6) is 2 million tons of goods a year.

6. Dung Quat 2 project completed 40% of progress

The Hoa Phat Dung Quat 2 Steel Production Complex Project (Dung Quat 2 Project) spans over 280 hectares, situated adjacent to the Hoa Phat Dung Quat 1 Iron and Steel Complex. It is designed to produce up to 5.6 million tons of hot rolled steel coil (HRC) annually, with a total investment capital of 85 trillion VND. The factory is scheduled to commence operations in the first quarter of 2025.

By December 2023, the Dung Quat 2 Project had achieved 40% completion according to the proposed timeline. Once finished, the Group's steel production capacity will exceed 14 million tons of crude steel per year, elevating Hoa Phat into the ranks of the Top 30 largest steel enterprises worldwide starting from 2025.

The project is expected to generate employment for over 8,000 workers, significantly boosting Vietnam's mechanical and supporting industries. It will also contribute positively to the long-term growth of industrial production value and provincial budget revenues in Quang Ngai Province.

7. Hoa Phat enhances optimization of the agricultural sector

After 8 years of operation in the field of agriculture, Hoa Phat Group has affirmed its leading position in the industry and constantly optimizes operational efficiency.

In 2023, Hoa Phat Animal Feed Company digitally transformed data management activities, deployed a pork feed line for the farm and applied GlobalGap standards to production activities. The company also installed a liquid organic acid injection system to save raw material costs, improve product quality and reduce labor costs.

In the poultry farming sector, alongside the high-yield Hy-Line Brown breed, Hoa Phat Group has introduced the Hy-Line Sonia, a pink egg-laying chicken breed from the US known for its exceptional egg production and fertility, as well as strong survival rates and low feed consumption. Hoa Phat Group currently commands the leading market share in clean chicken eggs in the North, producing approximately 900,000 eggs per day.

Hoa Phat's pig farms employ 1,100 workers, continually optimizing operations and incorporating cutting-edge technology into their farming processes. The new Long Ha farm has commenced production. In 2023, Hoa Phat supplied over 440,000 high-quality meat and breeding pigs to the market, surpassing the year's initial targets.

8. Hoa Phat’s electric household appliances opened sales channels and introduced a series of new products

Hoa Phat's refrigeration and household electrical products have gained renown for over two decades, celebrated in the market for their durability, energy efficiency, and ability to meet diverse customer needs. In the summer of 2023, the Hoa Phat Freezer was recognized as a top technology product. Beyond enhancing the appearance and energy-saving capabilities of their traditional offerings like Funiki air conditioners, Hoa Phat freezers, and refrigerators, in 2023, Hoa Phat DMGD has placed significant investment in research and development to innovate new products.

Early in 2023, DMGD Hoa Phat launched a range of new products including water purifiers, air coolers, induction cookers, infrared cookers, dishwashers, and hot and cold water dispensers. Notably, the highlight of their water purifier lineup is the 3-function RO water purifier collection with touch control, enriching their product range.

In the fourth quarter of 2023, DMGD Hoa Phat continued to introduce new products such as multi-function front-loading and top-loading washing machines, and a series of kitchen appliances under the Funiki brand: range hoods, slow juicers, rice cookers, pressure cookers, and electric kettles.

Throughout 2023, DMGD Hoa Phat has also focused on enhancing marketing efforts, introducing products, and forging strategic partnerships with modern retail channels such as Dien May Xanh. The Hoa Phat and Funiki household appliance brands are now available through multiple distribution channels, spanning traditional electronics stores, supermarket chains like Dien May Xanh, Cho Lon, Cao Phong, HC, Pico, and e-commerce platforms such as Shopee, Lazada, and Tiki.

Nearly 50 seminars and conferences have been conducted nationwide to fully showcase Hoa Phat's product features and utilities, fostering stronger relationships with dealers, customers, and installers under the guiding principle of "harmony and development."

9. Focus on digital transformation, enhance training activities, and improve personnel quality

The group's digital transformation initiatives have advanced significantly with several key projects underway. Phase 1 of the e-Office project has been successfully implemented across 66 units, serving 4,926 users and processing approximately 165,000 processes and 11,000 documents within the system. Hoa Phat is now actively researching and preparing for Phase 2 of the Electronic Office project.

Simultaneously, Phase 1 of the Human Resources Software project is progressing smoothly, ensuring standardized data across the group's human resource information systems and preparing for software integration.

Furthermore, the group emphasizes professional development through comprehensive training programs at both corporate and subsidiary levels, with specific initiatives such as internal trainer certification, Lean management training, and Power BI workshops. Additionally, member companies nationwide conduct numerous training sessions on fire prevention, incident handling, occupational safety, and hygiene.

10. Positive contributions to the state budget, active in charity and social activities

As of November 2023, Hoa Phat Group has contributed nearly VND8 trillion to the budgets of 29 provinces and cities nationwide.

The achievements in tax contributions from entities like Hoa Phat Dung Quat Steel, Hoa Phat Steel Pipe, Hoa Phat Electrical Appliances, Hoa Phat Hung Yen Steel, Hoa Phat Construction and Urban Development, Hoa Phat Steel Sheet, and Hoa Phat Feed are annually recognized by ministries and local authorities. Hoa Phat Hai Duong Steel, representing Hai Duong, has been singled out by the General Department of Taxation as an exemplary taxpayer for the 2020-2022 period.

Aligned with its commitment to social responsibility, Hoa Phat Group implements various programs supporting disadvantaged groups, focusing on Health, Education, Transportation, and Community initiatives. The "Beat of Love" program, for instance, has successfully treated 105 children facing difficult circumstances. Additionally, Hoa Phat supports 185 orphans across provinces including Quang Ngai, Hai Duong, Thai Binh, Bac Giang, Hoa Binh, Phu Tho, and Binh Phuoc, providing each child with monthly assistance of VND500,000. With a commitment spanning at least five years, Hoa Phat aims to serve as a steadfast support for these children as they navigate toward a brighter future.

In 2023 alone, Hoa Phat Group allocated over VND30 billion to various charitable activities including constructing houses, enhancing public infrastructure and schools, granting scholarships to students, providing gifts to the underprivileged, funding heart surgeries for children, and aiding orphan support efforts.