Pay attention to Vietnam's largest listed steel plant to invest in household appliance production and focus on the export share of Chinese enterprises

Recently, HOA Phat group JSC, Vietnam's largest listed steel plant, released its third quarterly report. What is more interesting is that it announced to enter the field of household appliance production in an attempt to compete for the export share of Chinese manufacturers.

The company said in a statement that in the fourth quarter of this year, the company has established Hefa Household Appliance Co., Ltd.

Based on the company's 20 years of experience in the refrigeration industry, it has launched a "organized" large investment in the household appliance industry.

In an interview with the media, tran Dinh long, chairman of the company, said that the expectation for this investment is to achieve a revenue of US $1 billion in 2030, and the longer-term vision is to become the world's largest household appliance manufacturer.

The new company will be committed to developing business lines such as air conditioners, refrigerators, water purifiers and dishwashers, of which 50% of its products are intended to be exported to overseas markets.

When it comes to the white appliance market, Hefa's new business will naturally be compared with Chinese industrial giants, and its low cost is also regarded as a competitive advantage.

Long said that China's production costs and energy shortages have increased the costs of enterprises, which has also led many large enterprises to transfer their production capacity to countries including Vietnam.

Driven by the rising tide of commodity prices in the past year, the share price of Hefa group has increased by 86% since 2021 after doubling in 2020.

At present, it is the fourth highest company in Vietnam's stock market, and it is also the biggest driving force driving the rise of the country's benchmark Ho Chi Minh stock exchange index.

In the first nine months of this year, the company achieved a total revenue of 105.8 trillion vnd (about US $4.6 billion) and a profit of 27.1 trillion vnd (about US $1.2 billion), up 60% and 200% year-on-year respectively.

The company said that it has "sufficient capital" to support its expansion. Long also said that at present, it sees a high demand for household appliances in Vietnam, Europe, the Middle East and North America.

Source: foreign markets, import and export managers

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