Hoa Phat Group ( HPG ) - The Leading of Vietnam's Steel Industry
BlogDate: 26-05-2023 by: Ngan Le
Hoa Phat Group (HPG) is known as one of the leading industrial production groups in Vietnam. During many years, Hoa Phat has contributed significantly to the development of Vietnam's steel industry in particular as well as GDP growth for the Vietnamese economy in general.
1. Established history of Hoa Phat Group
Hoa Phat Group was established in 1992 with the starting point as a company specializing in supplying and manufacturing machine accessories. During its more than 30-year history of operation, Hoa Phat has constantly expanded its position into many diverse fields from furniture, steel pipes, construction steel to real estate and agriculture.
Especially in 2017, this was an important milestone in Hoa Phat's development history when they founded Hoa Phat Dung Quat Iron and Steel Complex with a capacity of more than 5 million tons/year. The project has contributed to raising Hoa Phat Group position not only in the domestic market but also reaching out opportunities to become a leading steel producer in the Southeast Asia area.
2. Hoa Phat's business categories
Until now, Hoa Phat has 11 member companies which spread across the country, these companies are specialized in main fields including:
- Iron and steel: construction steel, hot rolled coil (HRC)
- Steel products including steel pipes, galvanized sheets
- Furniture for home and school
- Agriculture: animal feed
- Real estate business and investment in industrial zones
- Household appliances: air conditioners, refrigerators, freezers
Despite being a multi-industry group, steel production is still a core and important field of Hoa Phat Group, it accounts for more than 80% of annual revenue and profit.
3. Position of Hoa Phat Group in Vietnam Steel Market
Through the process of establishment and development, Hoa Phat's position is increasingly sustainable and continuously leading the market in the field of steel production.
Hoa Phat’s market share
In the field of construction steel, Hoa Phat is currently the largest scale enterprise and holds the No. 1 position in the Vietnam steel market for many years, specifically the market share of Hoa Phat's construction steel segment continued to lead for many years with a total market share of 34%.
Similar to construction steel, Hoa Phat Group is currently the largest steel pipe producer in Vietnam and the company ranks first through many years, Hoa Phat occupied 29% in total steel pipe market share. Main products of the steel pipe line include hot-dip galvanized steel pipe, welded black steel pipe, galvanized steel pipe,...
Total steel capacity per year of Hoa Phat Group
Due to modern steel refining technology, Hoa Phat has met all the strict quality standards from Japan and Europe, these are bases for Hoa Phat to provide a wide range of products which helped the group to be able to supply steel for a series of large projects and construction in the country.
In 2022, Hoa Phat supplied the market with 7.2 million tons of steel including billet, construction steel and HRC. In which, the line of hot rolled coil (HRC) is considered as a potential new strategy to help improve Hoa Phat's solidity as well as support the country's steel industry to gradually become self-sufficient in input materials. HRC products in the past year reached 2.6 million tons, which increased slightly when compared to the same period last year.
Hoa Phat's steel export volume by every months in 2022
In terms of steel pipes, Hoa Phat recorded production of 750,000 tons of output in 2022 and increased by about 11% when compared to 2021 despite the unfavorable situation of Vietnam's steel market last year. In short, with a capacity of 8.5 million tons/year, Hoa Phat is currently considered the largest steel producer in Vietnam with key factory complexes stretching from North to South Vietnam.
Scale of Hoa Phat Group's export market
Hoa Phat's export market has expanded strongly and reached out to 5 continents, until now, Hoa Phat's construction steel has appeared in more than 30 countries such as the US, Japan, Korea, and Canada. , ASEAN countries, etc. Currently, Hoa Phat's steel products have conquered most of the market which has serious standards including the EU. In 2022, Hoa Phat's export output will reach 1.2 million tons and raise 15% when compared to 2021.
Depending on the criteria of harmony and development along with steadfast spirit which is not being afraid of difficulties, Hoa Phat Group has gradually affirmed its position as the leading steel entrepreneur in Vietnam over the years. The development and expansion of export markets have contributed to bringing Hoa Phat's reputation as well as the quality of Vietnamese steel to the world. It created value to the trade balance and improved the growth of total import and export turnover in Vietnam.
