Major Vietnamese listed steel companies reported positive results in the first quarter of this year, despite the fallout from the COVID-19 pandemic.

Hoa Phat Group’s revenue for the quarter was 19.5 trillion won, up 28% year-on-year, and profit after tax was 2.3 trillion won, up 27% over the previous year. Hoa Phats’ construction steel market share grew to 31.9% in the first quarter, with production of almost 733,000 tonnes after excluding billets. It is estimated that the volume of exported finished metal products reached 135,000 tons, which is 74.8 percent more than in the same period last year. The supply of steel billets has reached about 350,000 tons, mainly for export. The company also provided the market with about 145,000 tonnes of steel pipes.

Another prominent steelmaker, Hoa Sen Group, also saw profit growth over the period under review. Hoa Sen’s revenue reached 5.8 trillion won this quarter. Dinam, down 16.3% year on year. Profit after tax in the reporting quarter was Dong 201 billion, nearly four times the profit achieved in the same period last year.

The other steel companies that reported increased profits in the first three months of this year were Vietnam Germany. The company’s profit amounted to 10.6 billion Dong, an increase of 3.8% over the same period last year. But that profit was less than one third of what was reported in the previous quarter.

According to SSI Securities Co, these results were associated with improved gross margins. Inventories were maintained at a safer level, allowing the company to focus on profits rather than sales as in previous years.

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