This surge follows the announcement that Vietnam is investigating anti-dumping measures on galvanized steel imported from China and South Korea.

On June 17, despite strong selling pressure in the stock market after the VN-Index fell below the 1,300-point threshold, steel stocks saw significant gains. HPG shares of Hoa Phat Group, chaired by Tran Dinh Long, increased by 1.4%, reaching 29,500 VND per share.

Other steel stocks also rose: Hoa Sen Steel (HSG) shares increased by nearly 7% to 25,150 VND per share; Dai Thien Steel (DTL) increased by 6.9% to 14,750 VND per share; and Nam Kim Steel (NKG) increased by 4.3% to 26,800 VND per share.

These increases followed the Ministry of Industry and Trade's decision on June 14 to investigate and potentially apply anti-dumping measures on certain galvanized steel products from China and South Korea. The investigation was initiated based on requests from five companies: Hoa Sen Group Corporation, Nam Kim Steel Corporation, Ton Phuong Nam Company, Ton Dong A Corporation, and China Steel & Nippon Steel Vietnam Corporation.

Additionally, the Ministry of Industry and Trade announced it had received a complete and valid dossier requesting an investigation into hot-rolled steel products (HRC) from India and China, following requests from HPG and Formosa Ha Tinh Steel Corporation.

Vietnam previously imposed anti-dumping duties on galvanized steel from China and South Korea in 2017, with the highest tax rate of 38.34%. After five years, these measures were terminated, but steel enterprises have since requested a new investigation.

HPG Chairman Tran Dinh Long stated that the anti-dumping investigation aligns with WTO standards and is a routine measure.

In Vietnam, imported steel holds a larger market share than domestically produced steel, with lower prices posing challenges for local enterprises. Hoa Phat group is the largest steel producer in Southeast Asia, with a total output exceeding 20 million tons. This capacity is expected to increase with the Dung Quat 2 project, operational from 2025. Hoa Phat Group's revenue is forecasted to nearly double to 190 trillion VND by that time.

The steel industry's growth and high demand for HPG shares have significantly boosted Tran Dinh Long's assets. According to Forbes' 2024 list, announced in early April, Tran Dinh Long had the fastest asset growth among Vietnamese billionaires over the past year, increasing by $800 million to $2.6 billion, placing him third among Vietnam's wealthiest individuals.

As of June 17, Forbes reported Tran Dinh Long's assets at $2.7 billion, ranking him third in Vietnam, behind Pham Nhat Vuong ($4.2 billion) and Nguyen Thi Phuong Thao of VietJet ($2.8 billion).

Despite strong selling pressure in the stock market, many pillar stocks experienced sharp declines, including Masan (MNS), BIDV (BID), FPT, and Mobile World (MWG).

However, VNDirect notes that the decline does not alter the market's medium-term upward trend, supported by a stable domestic macro foundation and improvements in growth, import and export, exchange rates, and the gold market. The current market adjustment is viewed as minor and unlikely to last long.

Manh Ha