Assets skyrocket by trillions in the richest billionaire group

Steel tycoon's fortune soars thanks to strong stock growth

During the week of June 19-23, the stock market recorded growth momentum for large-cap stocks such as: Hoa Phat Group - HPG (+8.3%), Vinamilk - VNM (+4.5%) and GVR (+6.7%)... However, not all pillar stocks increased.

Steel stocks, including Hoa Phat of billionaire Tran Dinh Long, grew positively after the Vietnam Steel Association announced that steel output in May recovered and hot-rolled coil (HRC) prices increased again.

Hoa Phat (HPG) shares increased in 4/5 sessions last week, and increased in 8/10 sessions since June 12. This is a very positive development for the leading stock in the steel industry, with a market share of more than 50% in the construction steel segment.

Over the past 6 months, HPG shares have increased by more than 40%. Compared to the bottom in mid-November 2022, HPG shares have increased by about 130%.

With HPG shares performing so positively, the assets of Hoa Phat Group Chairman Tran Dinh Long skyrocketed.

As of June 24, Mr. Long's more than 1,516 billion HPG shares are worth over VND38,514 billion.

The steel industry may have passed the difficult period. (Photo: Hoang Ha)

With such assets calculated on shares, billionaire Tran Dinh Long has become the richest person on the Vietnamese stock exchange according to statistics on the number of shares held directly on the exchange.

Not only HPG, recently, steel industry stocks have all increased sharply. Pomina Steel (POM) shares increased by nearly 40% in the past 3 weeks; Nam Kim Steel (NKG) increased by 17%; Hoa Sen Steel (HSG) shares broke through 13%...

Dragon Capital fund group continued to buy more Hoa Sen shares of Mr. Le Phuoc Vu before this company's dividend payment deadline. This group increased its ownership in HSG to more than 7.2%.

Steel industry after nearly a dark year

After about a year of stagnation and sharp decline in steel prices, the steel industry is starting to receive positive news.

According to the Vietnam Steel Association (VSA), steel production in May reached 2 million tons, up 3.1% over the previous month. Total consumption increased sharply by 13.3% to 2.14 million tons. Exports increased by nearly 30% to 822,657 tons, one and a half times higher than the same period last year.

*According to Forbes, billionaire Tran Dinh Long had assets of 2.2 billion USD as of June 25. Mr. Pham Nhat Vuong still had 4.2 billion USD. (Chart: M. Ha)*

For Hoa Phat, steel consumption is improving. In May, steel product sales increased by 16% compared to the previous month, to 530,000 tons.

Steel industry stocks increased sharply as investors bet that steel industry enterprises will benefit from recent positive signals.

In the second half of 2022, steel enterprises are struggling because of the sharp increase in imported raw material prices, high exchange rates, and falling steel consumption demand both domestically and internationally. Meanwhile, steel prices are continuously falling. Most steel enterprises are losing money.

Starting from the first quarter of 2023, many businesses have stopped making losses and have turned to making slight profits. This situation is likely to continue in the second quarter of 2023.

Recently, although the domestic real estate market is still quite quiet, some large real estate businesses have restarted projects.

At the 2023 annual general meeting of shareholders (AGM) on June 22, Novaland Chairman Bui Thanh Nhon said that the company has "passed the most difficult period". In the second quarter of 2023, Novaland restarted projects in the center of Ho Chi Minh City with the large urban areas of NovaWorld Phan Thiet, NovaWorld Ho Tram, and Aqua City. In the coming period of 2024-2025, Novaland plans to implement two more urban real estate projects in Ho Chi Minh City and one satellite urban project near Ho Chi Minh City.

On June 23, at the 2023 annual general meeting of shareholders of Kinh Bac City Development Corporation (KBC), CEO Nguyen Thi Thu Huong said that FDI capital inflows into Vietnam are still strong. KBC has leased 62.7 hectares of Nam Son Hap Linh Industrial Park to Goertek and a large FDI enterprise is expected to lease the remaining part of this industrial park and will bring billions of USD into Vietnam. Trang Cat urban area has also been deployed, leveling 100 hectares.

The real estate and construction market is expected to recover after a series of positive information such as: Decree 10 of the Government (guiding the implementation of the Land Law) helps to remove administrative bottlenecks for real estate project investors; Decree 08/2023 on corporate bonds, Resolution 33 on a number of solutions to remove obstacles in the real estate market or Decision 388 on the social housing development project, etc.

Value-added tax (VAT) on goods and services was also reduced by 2% (from 10% to 8%) until the end of 2023 on June 24. Along with the reduction in deposit interest rates, some securities companies expect that policy support and public investment will improve the purchasing power of the steel market from the second half of 2023.

On the morning of June 25, Hanoi Ring Road 4 was started. Some other public investment projects such as the North-South Expressway Phase 2 or Ho Chi Minh City Ring Road 3,... are also said to contribute to helping businesses, including steel businesses, benefit.

With a salary of 0 VND, billionaire Tran Dinh Long decided to stop new investments even though the most difficult time has passed . Billionaire Tran Dinh Long said that Hoa Phat Group has passed the most difficult period, its internal strength is very good, now it is just waiting for demand. HPG will stop new investments, cut real estate investments and focus on the Dung Quat steel project.

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