Steelmaker Hoa Phat Group targets revenue of VND55 trillion (US$2.4 billion) and after-tax profit of VND8 trillion in 2018.

The information was released at the group’s annual shareholder meeting held in Ha Noi on Thursday with the participation of 368 shareholders, who together hold 77 per cent of ordinary shares.

Hoa Phat’s management board chairman Tran Dinh Long said the group sees 2018 as a crucial year.

The firm would take drastic measures to ensure the progress of the Hoa Phat Dung Quat steel and iron production complex and make it the priority target for this year, Long said.

He added that the management board had carefully considered the targets before submitting them to the meeting.

“In the first quarter of this year, Hoa Phat’s revenue was estimated to reach VND12 trillion and profit of VND2 trillion,” he said.

The group would implement many big projects this year in their main steel business. In addition, it would be alert for changes in the material market.

In other sectors such as agriculture, construction equipment and interiors, Hoa Phat would continue to maintain its market share.

Tran Tuan Duong, Hoa Phat’s general director, said there was no steel firm in Viet Nam as competitive as Hoa Phat.

“With a low rate of investment and a competitive price, we can directly compete with big firms around the world,” Duong said.

Speaking on the progress of the Hoa Phat Dung Quat steel and iron production complex, Duong said the group had begun installing the first long steel rolling equipment, building a deep water port and undertaking other constructions.

Hoa Phat employed around 3,000 workers for the project, providing training at its complex in the northern province of Hai Duong.

At the meeting, the shareholders approved dividends of 40 per cent by share for 2017.

Last year, Hoa Phat Group notched a record high business result in its 25 years of operation despite instability in the global and national economies.

Its accumulated revenue in 2017 reached VND46.8 trillion, posting an increase of 38 per cent year-on-year. After-tax profit also hit a record high to reach VND8 trillion, surpassing the set target by 33 per cent and increasing 21 per cent over the previous year.

The group’s steel business played the key role, contributing some 90 per cent of its total revenue and after-tax profit.

Hoa Phat last year exported some 200,000 tonnes of steel products. They included 161,000 tonnes of steel bars and rolled steel to the US, Canada, Australia, Malaysia and Cambodia.

In terms of real estate, Hoa Phat Group handed over its Mandarin Garden 2 housing project in Ha Noi to homebuyers, while expanding industrial zones in the northern province of Hung Yen. It has started construction on Bac Pho Noi Urban Area and the 70 Nguyen Duc Canh apartment building.

With its positive business results, the group contributed VND5 trillion ($220 million) to the State budget in 2017, an increase of 40 per cent from 2016.

In November, Hoa Phat officially introduced its new brand name recognition project to improve its image, prestige and scale. — VNS