On June 17th, the stock market faced significant selling pressure after the VN-Index fell below the 1,300-point mark last week. However, some steel sector stocks surged.

At the close of trading on the first day of the week, shares of Hoa Phat Group (HPG), where billionaire Tran Dinh Long is chairman, rose 1.4% to 29,500 VND per share.

Shares of Hoa Sen Steel (HSG), owned by tycoon Le Phuoc Vu, also surged by nearly 7% to 25,150 VND/share; Dai Thien Steel (DTL) increased by the maximum limit, rising 6.9% to 14,750 VND/share; Nam Kim Steel (NKG) increased by 4.3% to 26,800 VND/share...

Steel stocks surged across the board after Vietnam initiated an anti-dumping investigation into galvanized steel products (also known as coated steel sheets) imported from abroad.

Specifically, on June 14th, the Ministry of Industry and Trade issued a decision to investigate the application of anti-dumping measures against certain coated steel products originating from China and South Korea, based on a request from five companies: Hoa Sen Group Joint Stock Company; Nam Kim Steel Joint Stock Company; Phuong Nam Steel Company; Dong A Steel Joint Stock Company; and China Steel & Nippon Steel Vietnam Joint Stock Company.

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Mr. Tran Dinh Long is the third wealthiest person on the stock exchange. Photo: HH

In addition, the Ministry of Industry and Trade also announced that it had received complete and valid dossiers requesting an investigation into the application of anti-dumping measures against hot-rolled steel (HRC) products from India and China. Previously, HPG and Formosa Ha Tinh Hung Nghiep Steel Company Limited had requested the investigation.

Vietnam imposed anti-dumping duties on imported coated steel products from China and South Korea in 2017, with the highest rate reaching 38.34%. After five years of implementation, the Ministry of Industry and Trade decided to terminate the order. In 2023, steel companies continued to file applications to request the initiation of an investigation.

HPG Chairman Tran Dinh Long stated that initiating an anti-dumping investigation is in accordance with WTO standards and is a normal procedure.

In Vietnam, imported steel has a larger market share than domestically produced steel, with lower prices, making it difficult for local businesses. HPG is currently the largest steel producer in Southeast Asia, with a total output of over 20 million tons. HPG's steel production scale is expected to increase further in the coming years when the Dung Quat 2 mega-project becomes operational from 2025.

At that time, Hoa Phat's revenue, owned by billionaire Tran Dinh Long, was projected to double, reaching nearly 190 trillion VND.

The booming steel industry, coupled with strong demand for Hoa Phat Group's HPG shares, is a factor contributing to the rapid increase in the wealth of billionaire Tran Dinh Long. The business prospects of this tycoon from Hai Duong are quite bright.

According to the Forbes 2024 list (published in early April), Mr. Tran Dinh Long had the fastest rate of wealth increase among Vietnamese billionaires over the past year. Accordingly, the steel magnate added $800 million to his fortune, reaching $2.6 billion and ranking third among the richest people on the Vietnamese stock exchange.

As of June 17th, according to Forbes, Mr. Tran Dinh Long has a net worth of $2.7 billion, ranking third in Vietnam, after Mr. Pham Nhat Vuong ($4.2 billion) and Ms. Nguyen Thi Phuong Thao of VietJet ($2.8 billion).

On the stock market, selling pressure remains strong. During the June 17th trading session, many key stocks experienced significant price drops, including Masan (MNS), BIDV (BID), FPT, and Mobile World Group (MWG)...

Despite the sharp market decline from the end of last week, overall, according to VNDirect, the drop has not changed the market's medium-term upward trend, especially given the stable and improving domestic macroeconomic foundation in several areas such as growth, exports and imports, exchange rate stability, and the gold market, etc. The correction is considered to be of moderate magnitude and will not last long.

Billionaire Tran Dinh Long leads the way in wealth growth; will he surpass Pham Nhat Vuong? The booming steel industry and strong demand for Hoa Phat Group (HPG) shares are factors contributing to the rapid increase in billionaire Tran Dinh Long's wealth. The business prospects for this tycoon from Hai Duong are quite bright.