3.

3 SWOT analysis
Pomina Steel Corporation (POM)
Strengths

Weaknesses

Top construction steel producer with a domestic

market share of 20%.
Large production capacity and well-established
distribution network.

Higher competition between current companies

and new joiners, coupled with higher financial
expenses, put pressure on gross margins.

Rolling mills use leading technology from Italy and

Germany, thus driving competitive advantage.
Opportunities

Threats
Imports over 80% of its raw materials, hence
fluctuation of exchange rate will affect profits.

Vietnam has just emerged its industrialisation

process, thus there is vast growth potential for
new steel projects.

Glut in steel supply, cheap Chinese imports and

declining prices curbed many construction
projects.

Hoa Sen Group (HSG)

Strengths

Weaknesses

Number one position in manufacturing and trading

coated steel sheet in Vietnam.

Fluctuations in interest expenses due to volatile

interest rate and stock market.

Leading coated steel sheet exporter in ASEAN

with export sales exceeding USD 100mn.
Average growth rate of net sales is over 55% per
annum over the last decade.

Highly volatile raw materials costs and exchange

rate, coupled with sinking selling prices exert
pressure on gross margins.

Opportunities

Threats

Aggressive in expanding its retail distribution

branches to increase selling capability and
competitive advantage

Oversupply of steel, cheap Chinese imports and

unfavourable global economic conditions caused
domestic companies to fall into bad situations
and brought many to the verge of bankruptcy.

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Thai Nguyen Iron and Steel JSC (TISCO)

Strengths

Weaknesses

Sole industrial complex in Vietnam having a

complete metallurgical production line to turn iron
ore into pig iron, steel billet and rolling steel.
Extensive product distribution network
penetration into international markets.

and

Intense competition and higher interest expenses

exert downward pressure on operating margins.

Significant contribution to national construction

and development projects with the use of its steel
products in hydropower plants, bridges and
transmission lines.
Opportunities

Threats

Huge growth potential for new steel projects in

Vietnam in line with the industrialisation process.

Volatile steel prices and oversupply, coupled with

increasing cheap imports from China, curbed
many construction projects.

Dai Thien Loc Corporation (DTL)

Strengths

Weaknesses

One of the leading manufacturers in Vietnams

steel industry, specialising in a broad spectrum of
products.
Lowest net debt compared to its major peers.

Production and trade targets still face a lot of

difficulties, especially the consumption of
products in increasingly competitive markets.

Won a few awards in recent years like ASEAN

Typical Enterprise and Vietnam Gold Star
award.
Opportunities

Threats

Embarking on capacity expansions to increase

production line of galvanised steel and steel pipes
and tubes.

Oversupply situation, increasing cheap imports

from China and falling steel prices led to
dwindling margins.

The research report is based on material compiled from data considered to be reliable at the time of
writing. However, information and opinions expressed will be subject to change without notice. Emerging
Markets Direct Media Holdings LLC does not accept any liability directly or indirectly that may arise
from investment decision-making based on this report.

Steel

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