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Hoa Phat posts record high profit in 2021

Hanoi  – Vietnam’s leading steelmaker Hoa Phat Group recorded its highest ever after-tax profit of 34.5 trillion VND (1.5 billion USD) in 2021, 1.5 times higher than the previous year and surpass 92 percent of the whole year’s set target.

Its revenue surged 65 percent to 150.8 billion VND.

The group posted a 73 percent year-on-year increase in its revenue in the fourth quarter of last year to 45 trillion VND. Its after-tax profit also rose 59 percent to 7.4 trillion VND compared to the same period last year.

Despite negative impacts of the COVID-19 pandemic, Hoa Phat iron and steel complexes in Hai Duong, Quang Ngai and and Hung Yen provinces still operated at full capacity to serve domestic and foreign markets.

Last year, the group manufactured 8.8 million tonnes of construction steel, hot rolled coil steel (HRC), steel pipes and galvanised steel, up 35 percent against 2020. About 2.6 million tonnes of steel products were sold abroad, doubling year-on-year.

With its performance, Hoa Phat remains to hold the No. 1 market share in Vietnam for construction steel and steel pipes with 32.6 percent and 24.7 percent respectively. Hoa Phat is also the only Vietnamese enterprise that can produce HRC.

In addition to having the largest Australian cow herd in the country, the group is taking the lead in the northern market with an output of 800,000 eggs a day.

The group’s real estate sector is focusing on expanding existing industrial parks, and at the same time researching and investing in a number of housing projects and service urban areas.

Operating in 25 provinces and cities across the country, Hoa Phat Group contributed 12.4 trillion VND to the State budget last year, 70 percent higher than the amount in 2020.

Hoa Phat is carrying out major projects including Hoa Phat Dung Quat 2 iron and steel complex and Dung Quat economic zone complex port and a container manufacturing factory in Ba Ria-Vung Tau province. Once completed, these projects will raise the scale and promote long-term growth for Hoa Phat Group.

Source: VNA

Photo: VNHAM

Bright prospects predicted in FDI attraction in 2022 and following years

Hanoi  – Vietnam expects good results in foreign direct investment (FDI) attraction in 2022 and following years, with good signals seen right from the beginning of this year, reported the Da tu (Investment) newspaper.

The first FDI project receiving investment licence in Vietnam in this year is the Hai Lang liquefied natural gas (LNG) power plant project in the central province of Quang Tri with total investment of 2.3 billion USD.

This project alone has made the FDI in January higher than the figure of 2 billion USD recorded in January last year. Meanwhile, many other projects have received investment licences since the beginning of this year, including the addition of 400 million USD to Goertek project in Nghe An and a 136 million USD Coca-Cola project in Long An province.

Right from the end of 2021, experts already showed optimism about FDI attraction prospects of Vietnam in 2022.

The Foreign Investment Agency under the Ministry of Planning and Investment mentioned the plans of many giant firms such as Apple, Samsung, Nike, Adidas and Foxconn to expand operations in Vietnam. Furthermore, the plans to invest 1 billion USD in LEGO factory in Vietnam and Intel’s plan to add 2.5 billion USD to is projects in Vietnam as well as Hanamicrom’s intention to invest in a semiconductor factory in the country have also been revealed.

The agency commented that 2022 and following years will be good years for Vietnam with many large-scale and high quality projects from world leading firms.

Meanwhile, 67 percent of European businesses said that they are optimistic about the business climate in Vietnam. At the same time, a survey by Japan External Trade Organization (JETRO) showed that 55.3 percent of Japanese said that they intend to expand business in Vietnam, and only 0.3 percent plan to withdraw from Vietnam. According to the survey, which was conducted from August to September 2021, 56.2 percent of the firms expect higher profits in 2022, and only 9.6 percent predicted lower profit.

According to Hirai Shinji, Chief Representative of JETRO in Vietnam, the Japanese firms intending to withdraw from Vietnam still hoped to return to the country when things become better.

In reality, many other firms have come back to Vietnam since the Government adopted the strategy of safely and flexibly adapting to the COVID-19 pandemic.

The business expansion of many other foreign firms in Vietnam, including Samsung from the Republic of Korea, JAPEX from Japan and Sri Avantika Contractor Ltd from India, is also expected to lead to many other opportunities for Vietnam in FDI attraction.

Source: VNA

Photo : File

Vietnam has first $1.1billion logistics fund

The recently established GLP Vietnam Development Partners I (GLP VDP I) with an investment capacity of US$1.1 billion is set to be one of the largest logistics development funds in Southeast Asia (SEA).

The fund has received commitments from a well-diversified investor group across Asia, Europe, North America, and the Middle East representing pension funds, sovereign wealth funds, and insurance companies.

Through this transaction, several new investors to its fund management platform included the Dutch pension fund manager APG Asset Management (APG) and Toronto-headquartered global financial services provider, Manulife.

GLP VDP I, which will focus on developing modern and environmentally-friendly logistics facilities in Hanoi and Ho Chi Minh City, is seeded with six development sites with a total land area of close to 900,000 square meters and has a robust development pipeline of further opportunities.

Craig A. Duffy, Managing Director of Fund Management, said institutional investment in APAC’s logistics sector has been strong and within SEA, Vietnam is one of the most attractive markets given its population dynamics, growing economy, and middle class, which support domestic consumption.

“We see similarities between Vietnam and our logistics businesses in China and India and know we can leverage our expertise and knowledge from our experiences in those markets to create a sustainable, market-leading business in Vietnam,” he added.

Graeme Torre, Managing Director and APG’s Head of Asia Pacific Real Estate, said: “With the continued global supply chain shifts to Vietnam, a growing middle class to uphold economic growth, as well as having one of the fastest-growing e-commerce markets in SEA, we believe Vietnam logistics is an attractive opportunity for us to enter in the region.”

According to Manulife, this investment is one of its first few real estate investments in the market, and it bodes well with its long-term real estate strategy in the region.

According to Agility’s report, Vietnam was among the top 10 leading emerging logistics markets and has an expected compound annual growth rate (CAGR) of 7% in the 2021-2026 period.

Source: The Hanoi Times

Photo: File

Imported automobiles up over 52% in 2021

Hanoi – As many as 160,035 automobiles were imported to Vietnam last year, up 52.1 percent annually, mostly from Thailand, Indonesia and China, reported the General Department of Vietnam Customs.

Its preliminary data showed that the December figure was 15,196 worth 433 million USD compared to 15,356 units worth 340 million USD in November.

Among them, those from Thailand, China and Indonesia numbered 13,766, or 91 percent of the total auto imports to Vietnam.

Also in December, there were 8,536 units with below nine seats imported to Vietnam at a value of 190 million USD, or 56.2 percent of the total, down 23.5 percent in volume month-on-month. Those with more than nine seats came from China with 54 units and Thailand 28.

Domestic firms also bought 2,583 specialised automobiles worth 117.3 million USD, up 67.7 percent in volume and 56 percent in value month-on-month. Of this, 2,303 were from China, up 91.9 percent monthly.

Source: VNA

Photo: File

Thai company buys two more solar plants in Vietnam

Bangkok  – Thai energy company Banpu PCL has agreed to acquire the companies holding a 50-MW portfolio of two solar parks in Vietnam in a deal worth 26.7 million USD, according to the company.

The two are the 15-MW Chu Ngoc solar park in the Central Highlands province of Gia Lai and the 35-MW Nhon Hai photovoltaic (PV) farm in the central province of Ninh Thuan.

Both plants receive feed-in tariffs (FiTs) of 0.0935 USD/kWh and have in place 20-year power purchase agreements with the Vietnam Electricity (EVN). The smaller one became operational in June 2019, while the bigger has been generating electricity since July 2020.

According to the agreement, the assets will be purchased by BRE Singapore Pte Ltd, a subsidiary of Banpu Next Co Ltd.

The transaction is subject to certain adjustments and customary approvals, and is due to be completed in the second quarter of the year.

The deal comes on the heels of Banpu’s agreement from December last year to buy the 50-MW Ha Tinh solar farm in Vietnam’s Ha Tinh province for 23.9 million USD. The Bangkok-based company then said the acquisition will be finalised in the first quarter of 2022.

Source: VNA

Photo: File

SK Group invests in Vietnam solar energy

SK Ecoplant, an affiliate of SK Group – the third largest conglomerate in South Korea, has formed a $200-million joint venture for rooftop solar energy development in Vietnam.

The joint venture between SK Ecoplant and Nami Solar, a subsidiary of Nami Energy in Ho Chi Minh City, will develop a 250-MWp rooftop solar power project to serve businesses, including South Korean firms that want green energy and lower energy costs.

The joint venture’s advantages lie in SK Ecoplant’s financial and technical strength and Nami Solar’s strong foothold in Vietnam, said Nami Energy Chairman Luu Hoang Ha.

Both Vietnamese and South Korean governments highlight action plans on responding to climate change, recovery and green growth, with Vietnam pledging to become carbon neutral by 2050.

According to foreign experts, Vietnam has some of the most sunlight hours in Asia, particularly in the South where most of the country’s manufacturers are.

By putting solar panel systems onto the roofs of their factories, manufacturers are saving on energy costs, while expanding their production and also helping improve the environment, reduce air pollution and contribute to a healthier society, they hold.

Source: vnexpress.net

Photo: courtesy of Nami Solar

HSBC commits to arranging 12 billion USD of sustainable financing

Hanoi  – HSBC Vietnam on January 25 announced its commitment to arranging up to 12 billion USD of direct and indirect sustainable financing for Vietnam and the corporate sector in the country by 2030.

The bank, in its letter to the Government, expressed its plan to financially and expertly back corporates’ promising and critical green and sustainable projects in Vietnam, which play a vital role in decarbonising the country’s economy.

This forms part of HSBC’s broader net zero pledge to help customers transition their business models and decarbonise by prioritising 750 billion USD to 1 trillion USD in finance and investment by 2030.

For Vietnam to reach its net zero target by 2050 as committed at the 26th UN Climate Change Conference of the Parties (COP26) in the UK last year, it needs to significantly invest in renewable energy and green infrastructure.

“The Vietnamese Government has clear ambitions to tackle climate change through both green finance and technology transfer,” said Tim Evans, CEO of HSBC Vietnam. “These commitments give the private sector more confidence to borrow and invest.”

HSBC Vietnam will mobilise funds from local and international financial markets to provide a wide range of sustainable solutions in green finance, debt finance, supply chain, trade, green deposits and investment products. HSBC incorporates prudent risk assessment and international green finance standards in providing these solutions.

“We have received positive feedback together with explicit guidance from the Vietnamese Government to work together with a number of ministries and the State Bank of Vietnam to help arrange green funding for Vietnam,” added the official.

HSBC Vietnam has a track record supporting critical green and sustainable projects in Vietnam, which all contribute to decarbonising the country’s economy, including the first green loans for green certified buildings, financed Duy Tan Plastics Recycling Factory in 2020, a dual green financing includes a term loan to REE Solar Energy to finance their investment into rooftop solar energy solutions, and a trade finance facility to REEPRO for importing rooftop solar equipment in 2020.

Source : VNA

Photo : HSBC

Seaports handle over 60 million tonnes of goods in January

Hanoi – Vietnam’s seaports are projected to handle more than 60 million tonnes of goods in the first month of 2022, equivalent to the same period last year, announced the Vietnam Maritime Administration (VMA).

The total volume of container cargo going through seaports is estimated to hit 2 million TEUs in the period.

Lingering negative impacts of the COVID-19 pandemic and import acceleration in the US and Europe during the holiday season resulted in the modest volume of seaborne trade in January, according to the Vietnam Logistics Businesses Association.

The expansion of the containers shipping market, which is forecast to last until the end of this year, along with a trend in raising vessels’ capacity, will open up major opportunities for Vietnam’s seaports, notably gateway ones of Cai Mep-Thi Vai in Ba Ria-Vung Tau southern province and Lach Huyen in the northern port city of Hai Phong, said Tran Khanh Hoang, Vice Chairman of the Vietnam Seaports Association.

Source : VNA

Photo : File

Vietnam exports over 453 million medical maks in 2021

Hanoi  – Vietnam exported a total of 453.1 million medical face masks of all kinds in 2021, according to the General Department of Vietnam Customs (GDVC).

With 44.8 million pieces sold to foreign markets last December, down 8.6 percent against the previous month, the export declined after rising for four consecutive months.

The masks were shipped abroad by 12 businesses.

More than 1.37 billion medical face masks were shipped in 2020, with the peak coming in June that saw over 236 million pieces exported.

Source: VNA

Photo: File