The Forbes 2024 list of billionaires shows that the assets of Hoa Phat Group (HPG) president Tran Dinh Long are the fastest growing in Vietnam, with growth rates surpassing other billionaires, including Pham Nhat Vuong of Vingroup, Ho Hung Anh of Techcombank, and Nguyen Dang Quang of Masan group.

The steel billionaire from Hai Duong province had $800 million more in 2023, which caused its total assets to reach $2.6 billion. The figure has put him at the No3 position among the richest Vietnamese stock billionaires.

Long’s assets increased again thanks to HPG price increases from VND22,800 per share in late October 2023 to VND30,000.

Prior to that, in October 2022, HPG prices dropped to VND11,000 per share, which forced Long’s assets down to $1.2 billion as per Forbes’ calculations. This was believed to be the most difficult period for Hoa Phat with real estate prices falling, US dollar price increasing, and coke coal prices increasing by three times, 

HPG prices have been rising over the last six months with steel volume and prices increasing again. Steel demand in Vietnam and the world remains weak, but has seen considerable improvement.

In the domestic market, steel prices are backed by a series of infrastructure projects and more public investments. These include Long Thanh Airport, highways, and belt roads in Hanoi and HCM City.

Though profits have improved only moderately, revenue of the steel manufacturer has increased and its market share has expanded, cementing its position in the domestic market.

In the fourth quarter 2023, Hoa Phat reported revenue of VND35 trillion, up 23 percent over the same period last year. The revenue of 2023 was VND230 trillion, which was a 16 percent decrease compared with the year before.

The assets of Hoa Phat president are expected to continue to increase as HPG share prospects are positive. Hoa Phat’s profits may increase rapidly based on its production scale and market share expansion.

Long’s assets 

Long has been listed among the Vietnamese getting rich most rapidly in the world. The pockets of the "steel King" may increase by twofold to $5 billion, if Hoa Phat’s profits  rise as expected.

However, in the short term, HPG shares are under pressure after a long period of increase.

Long’s asset value has decreased. Forbes reported that by the end of April 4, Long had $2.5 billion (down $100 million compared with Forbes’ 2024 list of billionaires released earlier this month).

With assets, Long ranked 1,366th among the most wealthy people in the world. Nguyen Thi Phuong Tao, president of Vietjet Air, with $2.8 billion, is above Long.

Hoa Phat has capacity of 8.5 million tons of raw steel a year, the largest in Vietnam and Southeast Asia. The output of ingot steel, structural and high-quality steel products is 5.5 million tons and HRC 3 million tons per annum.

Hoa Phat is leading the Vietnamese market in structural steel and pipe steel manufacturing. It is among the top five manufacturers of galvanized steel sheets, and the only Vietnamese enterprise that can produce hot rolled steel coils (HRC) and other types of high quality steel.

The steel manufacturer is establishing the Hoa Phat Dung Quat 2 steel complex in Quang Ngai with capacity of 5.6 million tons of HRC per annum. 

It is expected that the mill will be completed by 2025, and once operational, it will raise Hoa Phat’s raw steel production capacity to 14 million tons. If so, it will be among the world’s 30 biggest steel manufacturers.

Most recently, Hoa Phat signed an MOU on research and investment in three projects with total capital of VND120 trillion in Phu Yen, one of which is steel manufacturing.

This was a surprise as Long had previously stated that he would gather strength for Dung Quat 2 and prioritize paying dividends to shareholders.

However, sources said the project in Phu Yen will pursue a new business strategy, focusing on high-quality products, about 6 million tons, which would serve the automobile, shipbuilding, and mechanical engineering industries, thus helping to ease reliance on imports.

Long had earlier predicted that HPG profits may be double after Dung Quat 2 super-project becomes operational.

Manh Ha