Hoa Sen Group - a reputable investor

(Baonghean) - On October 4, 2014, good news came to Nghe An province when the Hoa Sen Steel Sheet Factory in Nam Cam Industrial Park officially commenced construction, and nearly six months later, the factory has been operating efficiently. Hoa Sen Group is now investing in another new factory in Dong Hoi Industrial Park (Hoang Mai Town), with machinery and equipment expected to be installed and operational by October 2016.

Over the years, with many innovative policies, integration, and a focus on attracting investment, Nghe An province has attracted many large corporations and investors, including Hoa Sen Group - one of the leading economic groups in Vietnam and ASEAN, currently establishing and maintaining its number one position in the production and trading of steel sheets and coils in Vietnam. Hoa Sen Group has invested in two factories in the Southeast Economic Zone, one of which is already operational. This is a reputable investor with strong potential, investing quickly, creating confidence and enthusiasm among the government and people of Nghe An.

Steel sheet production at Hoa Sen Steel Sheet Factory in Nghe An.

The Hoa Sen Steel Sheet Factory, built in Nghe An province, currently has 6 production lines in operation, producing 100,000-120,000 tons per day, selling to the group's branches. The factory currently employs over 100 workers, many of whom are from Nghe An. Located in Zone B on a 12-hectare area in the Nam Cam Industrial Park, part of the Southeast Economic Zone, the Hoa Sen Steel Sheet Factory in Nghe An is planned to be completed in 4 phases, starting in September 2014 and expected to be finished in August 2018. The project has a total estimated fixed capital of over 2,360 billion VND, including: 12 steel pipe production lines with a total designed capacity of 100,000 tons/year; and a slitting line with a designed capacity of 100,000 tons/year. The project includes a color-coated steel sheet production line with a designed capacity of 100,000 tons/year; a galvanized/aluminum-zinc alloy steel sheet production line with a total designed capacity of 400,000 tons/year; a cold rolling line; an acid regeneration line; a pickling line; a CNC steel shaft grinding machine, etc. The Hoa Sen Nghe An Steel Sheet Factory Project is expected to complete all four phases by August 2018.

In the Dong Hoi Industrial Park, Nghe An province, Hoa Sen Group has just commenced construction of the Hoa Sen Nghe An factory with a total projected investment of 7,000 billion VND. The factory will include a cold rolling line with a designed capacity of 1.2 million tons per year; and a galvanized steel sheet production line with a total designed capacity of 1 million tons per year… The factory is expected to produce its first products in March 2016.

Both factories of Hoa Sen Group were built very quickly, ahead of schedule. Once completed and operational, the two factories will create jobs for approximately 1,000 workers, make a significant contribution to Nghe An province's budget, and contribute to the socio-economic development of the North Central region. They will also enhance Hoa Sen Group's production capacity and ability to supply steel and corrugated iron products, particularly meeting the market demand in the Central and Northern provinces, and increasing export volumes to Laos, Thailand, Myanmar, and other countries.

According to the first nine months of the fiscal year from October 2014 to June 30, 2015, Hoa Sen Group's finished product sales reached 771,630 tons, equivalent to 85.74% of the annual plan, of which export volume reached 320,579 tons, reaching 96.4%; net revenue reached VND 13,521 billion, reaching 81.94%; and after-tax profit reached VND 484 billion, reaching 107.6%. This information was announced by Mr. Vu Van Thanh, Deputy General Director of Hoa Sen Group, on the electronic portal of the State Securities Commission and the Ho Chi Minh City Stock Exchange. The Group continues to achieve success with steady progress. Currently, after 15 years of formation and development, Hoa Sen Group has more than 4,500 employees and a system-based management system. In 2015, in addition to continuing to be the leading steel sheet exporter in Southeast Asia, Hoa Sen Group maintained its position as the number one steel sheet manufacturer and trader in Vietnam.

According to Mr. Le Phuoc Vu, Chairman of the Board of Directors of Hoa Sen Group, the reason for the investment in Nghe An is "destiny." Mr. Le Phuoc Vu stated: "The 'red carpet' approach to attracting investment from the provincial leaders, especially the proactive spirit of the current leaders of Nghe An province, has been very convincing and reassuring. The determination and efforts of the investors have been appreciated by the Provincial Party Committee, the People's Committee of Nghe An province, and the relevant departments and agencies, who are focusing on resolving issues and difficulties for the projects so that they can soon become operational."

It is known that in 2015, Hoa Sen Group will establish an additional 50 branches, aiming to increase the total number of branches to approximately 300 in Vietnam by the end of 2017. With a solid foundation built over the past 14 years, Hoa Sen Group is gradually asserting its stature as a dynamic Vietnamese enterprise in economic integration, affirming a Vietnamese brand of international standards. The Group has now expanded its export market for steel and sheet metal products to more than 52 countries worldwide.

Text and photos:Chau Lan