Vietnamese steelmakers see positive results despite pandemic

Vietnamese steelmakers see positive results despite pandemic

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Steel producers in Vietnam have reported positive results for the first quarter of the current year despite the effects of the coronavirus pandemic.

Hoa Sen Group (HSG), one of the country’s main steelmakers, posted a net profit of VND 201 billion ($8.65 million) for the third quarter ending March 31 of the financial year 2019-20, nearly four times higher than the profit achieved in the same period last year. The company’s sales revenues decreased by 16.3 percent year on year to VND 8.5 trillion ($365.8 million) in the given quarter. The company was able to focus on profits instead of sales since inventories were maintained at a safe level, SteelOrbis understands.

Another Vietnamese steelmaker Vietnam Germany Steel Pipe JSC increased its net profit by 3.8 percent to VND 10.6 billion ($456,000) in the given quarter, compared to the corresponding period of the previous year, while this was less than one third of the net profit reported in the previous quarter. Meanwhile, Nam Kim Steel JSC (NKG) announced a net profit of VND 41.5 billion ($1.78 billion) for the March quarter, compared to a net loss of more than VND 100 billion in the first quarter of the previous year. For 2020, Nam Kim targets a sales revenue of VND 12 trillion ($515.5 million), down slightly compared to 2019.

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