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    Vietnam Steel Industry: Presenter: Huynh Thanh Ly

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    Dương Nguyễn
    This document provides an overview of Vietnam's steel industry. It discusses the history and development of the industry since the 1960s. It outlines the manufacturing process and main steel products. It then analyzes the current situation, including outdated production technology, fluctuating business conditions, and major companies. Financial ratios are presented for four large steel companies. The document concludes by discussing preferential policies from the Vietnamese government to protect the domestic steel industry.

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    Vietnam Steel Industry: Presenter: Huynh Thanh Ly

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    Dương Nguyễn
    83 views46 pages
    This document provides an overview of Vietnam's steel industry. It discusses the history and development of the industry since the 1960s. It outlines the manufacturing process and main steel products. It then analyzes the current situation, including outdated production technology, fluctuating business conditions, and major companies. Financial ratios are presented for four large steel companies. The document concludes by discussing preferential policies from the Vietnamese government to protect the domestic steel industry.

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    VIETNAM STEEL INDUSTRY

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    This document provides an overview of Vietnam's steel industry. It discusses the history and development of the industry since the 1960s. It outlines the manufacturing process and main steel products. It then analyzes the current situation, including outdated production technology, fluctuating business conditions, and major companies. Financial ratios are presented for four large steel companies. The document concludes by discussing preferential policies from the Vietnamese government to protect the domestic steel industry.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    83 views46 pages

    Vietnam Steel Industry: Presenter: Huynh Thanh Ly

    Uploaded by

    Dương Nguyễn
    This document provides an overview of Vietnam's steel industry. It discusses the history and development of the industry since the 1960s. It outlines the manufacturing process and main steel products. It then analyzes the current situation, including outdated production technology, fluctuating business conditions, and major companies. Financial ratios are presented for four large steel companies. The document concludes by discussing preferential policies from the Vietnamese government to protect the domestic steel industry.

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    © All Rights Reserved
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    of 46

    VIETNAM STEEL

    INDUSTRY
    Presenter: Huynh Thanh Ly
    1. OVERVIEW OF VIETNAM STEEL
    INDUSTRY
    ۞ 1.1.HISTORY AND DEVELOPMENT
     Operating since 1960s
     1963: produced first cast iron.1975: produced first
    finished-goods steel
     1975-1989: mainly imported from Soviets Federation.
    Domestic productivity was just around 40.000-50.000T
    per year
     1989-1995: developed sharply, output over 100.000T per
    year
     1996-2000: rapid development. In 2000, output was
    1.57mil Ton
     2000 to now: Productivity increased
    1. OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)
    ۞ 1.2. FLOW CHART OF MANUFACTURING
    PROCESS
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.1 From Section Mill :
     Rail Steel
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.1 From Section Mill:
     Sheet Pile Steel:
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.1 From Section Mill:
     Shape Steel:
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.1 From Section Mill:
     Bar Steel:
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.2 From Wire Rod Mill:
     Wire Rod Steel:
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.3 From Plate Mill:
     Plate Steel:
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.4 From Hot Strip Mill:
     Hot Rolled Coil and Sheet:
    ۞ 1.3 SOME MAIN PRODUCTS:
    1.3.4 From Hot Strip Mill:

    From HRC and Sheet:


     Through Cold Rolled Tandem Mill:

    → Cold Rolled Coil (CRC) and Sheet:


    ۞ 1.3 SOME MAIN PRODUCTS:
    1.3.4 From Hot Strip Mill:

    From HRC and Sheet:


     Through Welded Pipe Mill

    → Welded Pipe:
    1.OVERVIEW OF VIETNAM STEEL INDUSTRY (cont)

    ۞ 1.3 SOME MAIN PRODUCTS:


     1.3.5 From Seamless Pipe Mill:
     Seamless Pipe:
    2. CURRENT SITUATION OF THIS
    INDUSTRY IN VIETNAM
    ۞ 2.1 PRODUCTION TECHNOLOGY:
     Most of Vietnam steel manufacturer is using
    outdated technology.
     Product is mainly used for construction. There is
    no production line making Special steel using in
    manufacturing.
     Lack of Iron making plant; Billet and Slap are
    mainly imported, over 70% of demand.
    2.CURRENT SITUATION OF THIS INDUSTRY IN
    VIETNAM (cont)

    ۞ 2.1 PRODUCTION TECHNOLOGY:


     So far there are some projects building new
    metallurgical plant in Ha Tinh (TATA Group),
    Vung Tau ( Posco Group), and Thai Nguyen
    (TSC).
     Some large companies have invested in modern
    production line such as Hoa Sen Group, Posco
    in Ba Ria-Vung Tau, Tata in Ha Tinh, ….
    2. CURRENT SITUATION OF THIS INDUSTRY IN
    VIETNAM (cont)

    ۞ 2.2 BUSINESS SITUATION:


     Price changes continuously because of lot of
    factor: Billet and Slab imported changes,
    exchange rate changes, demand in country,…
     Inventory is high because of low demand of
    construction industry.
    2. CURRENT SITUATION OF THIS INDUSTRY IN
    VIETNAM (cont )

    ۞ 2.2 BUSINESS SITUATION;


     High interest rate strongly causes to productivity.
     Although there is no company going to
    bankruptcy, but business seems to be more
    difficult in short term.
     Exporting to USA is seem to be seriously
    influenced by anti dumping price law.
    3.MAJOR COMPANIES OF THIS
    INDUSTRY

    ۞ 3.1 IN SEGMENT HPG


    OF STEEL FOR
    CONSTRUCTION: POM

     There are some THAI NGUYEN


    STEEL
    large companies: VIS
    Hoa Phat Group,
    Pomina, Thai VGS

    Nguyen Iron and OTHERS


    Steel Coporation,
    Vietnam-Italia
    Steel, Vietnam-
    German Steel….
    3.MAJOR COMPANIES OF THIS INDUSTRY (cont)

    ۞ 3.2 IN SEGMENT
    OF PIPE STEEL:
     There are some
    large companies: HPG
    Hoa Phat Group, HSG
    Hoa Sen Group, HLA
    Huu Lien A Chau, VGS
    Vietnam-German OTHERS
    Steel….
    3.MAJOR COMPANIES OF THIS INDUSTRY (cont)

    ۞ 3.3 IN SEGMENT
    OF PREPAINTED
    STEEL: HSG
     There are some
    large companies: TOLL DONG A
    Hoa sen Group,
    Toll Dong A, Toll TOLL PHUONG
    NAM
    Phuong Nam, Dai OTHERS
    Thien Loc,Minh
    Huu Lien…
    4. FINANCIAL RATIO OF SOME LARGE
    COMPANIES
    ۞ 4.1 Hoa Phat Group:
    Q.2 Q1 Q4 Q3 Q2 Q2 Q2
    2011 2011 2010 2010 2010 2009 2008
    1.Long Term
    Financial
    Structure (Times)
    - Equity/Total Asset 0.41 0.41 0.43 0.40 0.41 0.59 0.74

    - Long-term Capital 1.87 1.89 1.83 1.92 1.55 1.94 4.85


    / Fixed Assets

    2.Short Term
    Payment Ability
    (Times)
    - Current Ratio 1.459 1.358 1.284 1.322 1.109 1.556 3.364
    - Quick Ratio 0.443 0.561 0..519 0.463 0.336 0.856 1.470
    4. FINANCIAL RATIO OF SOME COMPANIES (cont)

    ۞ 4.1 Hoa Phat Group:


    Q.2 Q1 Q4 Q3 Q2 Q2 Q2
    2011 2011 2010 2010 2010 2009 2008
    3.Operating Ability
    (days)
    - A/P Turnover 77.4 73.37 58.11 68.36 56.46 58.91 30.68
    (days)
    - A/R Turnover 155.4 150.7 134.7 121.9 120.4 152.2 195.0
    (days)
    - Inventory Turnover 582.7 476.4 463.0 530.4 484.0 395.2 366.5
    (days
    4.Profitability (%)
    - Gross Profit 17.86% 20.84% 18.11% 16.23% 16.36% 23.79% 21.93%
    Margin
    - Net Profit Margin 10.52% 11.65% 9.24% 8.39% 10.43% 19.10% 15.00%
    After Tax
    - ROE 6.60% 8.04% 6.48% 5.65% 6.37% 8.56% 8.77%
    4. FINANCIAL RATIO OF SOME COMPANIES (cont)
    ۞ 4.2 Hoa Sen Group:
    Q.2 2011 Q1 Q4 Q3 Q2 Q1
    2011 2010 2010 2010 2010
    1. Long Term
    Financial Structure
    - Equity/Total Asset 0.32 0.37 0.38 0.390 0.44 0.40

    - Long-term Capital / 0.88 0.95 0.99 1.28 1.33 1.05


    Fixed Assets

    2. Short Term
    Payment Ability
    (Times)

    - Current Ratio 0.868 0.920 0.961 1.174 1.285 0.969

    - Quick Ratio 0.170 0.280 0.255 0.397 0.352 0.282


    4. FINANCIAL RATIO OF SOME COMPANIES (cont)
    ۞ 4.2 Hoa Sen Group:
    Q.2 Q.1 Q.4 Q.3 Q.2 Q.1
    2011 2011 2010 2010 2010 2010
    3.Operating Ability
    (days)
    - A/P Turnover (days) 108.07 132.99 183.29 177.32 186.61 117.39

    - A/R Turnover (days) 66.8 82.2 76.99 43.35 66.39 46.79

    - Inventory Turnover 383.52 358.24 440.31 467.51 555.39 400.85


    (days)
    4.Profitability (%)
    - Gross Profit Margin 16.9% 12.7% 11.2% 17.5% 22.7% 18.3%

    - Net Profit Margin 1.7% 1.9% (4.0)% 4.3% 7.6% 2.8%


    After Tax
    - ROE 1.8% 1.7% (3.3)% 3.3% 4.2% 2.2%
    4. FINANCIAL RATIO OF SOME COMPANIES (cont)

    ۞ 4.3 Pomina:
    Q.2 Q.1 Q.4 Q.3 Q.2
    2011 2011 2010 2010 2010
    1.Long Term Financial
    Structure
    - Equity/Total Asset 1.15 1.16 1.06 1.03 1.16

    - Long-term Capital / 0.42 0.43 0.40 0.37 0.38


    Fixed Assets

    2.Short Term Payment


    Ability (Times)

    - Current Ratio 1.083 1.108 0.969 0.941 1.080

    - Quick Ratio 0.370 0.375 0.282 0.295 0.183


    4. FINANCIAL RATIO OF SOME COMPANIES (cont)

    ۞ 4.3 Pomina:
    Q.2 Q.1 Q.4 Q.3 Q.2
    2011 2011 2010 2010 2010
    3.Operating Ability
    (days)

    - A/P Turnover (days) 15.89 11.29 8.04 12.68 16.68

    - A/R Turnover (days) 33.8 23.6 20.2 19.8 30.6

    - Inventory Turnover 78.9 72.4 63.1 83.7 170.8


    (days

    4.Profitability (%)
    - Gross Profit Margin 11.07% 15.97% 10.82% 7.72% 15.09%
    - Net Profit Margin After 4.93% 5.79% 2.32% 2.69% 12.04%
    Tax

    - ROE 14.78% 20.53% 1067% 12.88% 33.67%


    4. FINANCIAL RATIO OF SOME COMPANIES (cont)
    ۞ 4.4 Dai Thien Loc:
    Q.2 Q.1 Q.4 Q.3 Q.2
    2011 2011 2010 2010 2010
    1.Long Term Financial
    Structure

    - Equity/Total Asset 0.54 0.48 0.40 0.43 0.46

    - Long-term Capital / 1.69 1.98 2.57 3.05 4.65


    Fixed Assets

    2.Short Term Payment


    Ability (Times)

    - Current Ratio 1.596 1.487 1.519 1.642 1.687

    - Quick Ratio 0.131 0.198 0.110 0.155 0.156


    4. FINANCIAL RATIO OF SOME COMPANIES (cont)

    ۞ 4.4 Dai Thien Loc:


    Q.2 2011 Q.1 Q.4 Q.3 Q.2 2010
    2011 2010 2010
    3.Operating Ability
    (days)

    - A/P Turnover (days) 37.00 35.29 72.10 62.67 61.05

    - A/R Turnover (days) 65.8 60.1 111.8 110.5 132.0

    - Inventory Turnover 819.7 815.0 1525.4 1326.8 1285.8


    (days

    4.Profitability (%)
    - Gross Profit Margin 21.74% 21.15% 17.8% 16.69% 23.51%
    - Net Profit Margin After 12.31% 14.27% 8.09% 8.44% 13.99%
    Tax

    - ROE 7.93% 11.79% 4.13% 4.24% 7.36%


    5. PFREFERENTIAL POLICIES FROM
    GOVERNMENT
    ۞ 5.1 TARIFF:
     Vietnam Government remains the protection
    policy against the domestic steel industry:
     issuing high tariff (20%-50%) against steel for
    construction, pre-painted steel and other finished-
    goods steel imported.
     Issuing low tariff (0%-10%) against billet, slab, scrap
    and other materials imported for producing domestic
    steel.
     Issuing low tariff (0%-3%) against steel exporting.
     Remaining a strict control against importing
    finished-goods steel to prevent any fraudulent.
    5. PFREFERENTIAL POLICIES FROM GOVERNMENT
    (cont)

    ۞ 5 .2 PFREFERENTIAL POLICY FOR NEW


    INVESTMENT:
     The legal document of “Approving the master
    plan on development of Vietnam Steel for 2007-
    2015 period, taking in 2025” No.145/2007/QĐ-
    TTg issued by PM Nguyen Tan Dung on Sept
    4th 2007.
     Got preferential interest rate, tax and exchange
    rate when investing new plants and modern
    production line.
    6.MAJOR MACHINERY AND EQUIMENT
    FOR PRODUCTION
    ۞6.1 IN STEELMAKING LINE:
     Bar Rolling Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.1 IN STEELMAKING LINE:


     Wire Rod Rolling Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)
    ۞6.1 IN STEELMAKING LINE:
     Hot Rolling Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)
    ۞6.1 IN STEELMAKING LINE:
     Cold Rolling Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)
    ۞6.1 IN STEELMAKING LINE:
     Welded Pipe Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.1 IN STEELMAKING LINE:


     Steel Pipe Cutting Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.2 IN TOLL PRODUCTION LINE:


     De-Coiler Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.2 IN TOLL PRODUCTION LINE:


     Toll Cutting Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.2 IN TOLL PRODUCTION LINE:


     Roofing Roll Forming Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.2 IN TOLL PRODUCTION LINE:


     Slitting Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.2 IN TOLL PRODUCTION LINE:


     Tile Roofing Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.2 IN TOLL PRODUCTION LINE:


     Floor Deck Forming Machine:
    6.MAJOR MACHINERY AND EQUIMENT FOR
    PRODUCTION (cont)

    ۞6.2 IN TOLL PRODUCTION LINE:


     Machinery for this process can be manufactured
    in Vietnam. Saigon Industrial Metallic Co., Ltd is
    a leader of this field.
     The Liquidity Of Machinery for this process is
    higher than Machinery for steelmaking due to
    there is many small and medium companies
    operating in this field, and the price is not too
    expensive.
    7. OVERLOOK
     In future, The Government possibly requests
    high technology in production line because of
    environment protection and high quality demand.
     Since 2015, when VN carries out its commitment
    against WTO, tariff rate must be 0%. Therefore,
    domestic companies will be put into a high
    competition.
    7. OVERLOOK

     Just companies which own high capacity can be


    survive in this furious competition.
    Thank You For
    Listening!

    HCMC 11.11.11

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