Key Highlights:
Tran Dinh Long maintains his position among the top three richest individuals in Vietnam, largely due to a surge in steel stock prices.
This surge is linked to Vietnam’s recent investigation into anti-dumping measures on galvanized steel imports from China and South Korea.
Despite a decline in the VN-Index, steel stocks, particularly those of Hoa Phat Group (HPG), saw significant gains.
Stock Performance:
Hoa Phat Group (HPG) shares increased by 1.4%, reaching 29,500 VND per share.
Hoa Sen Steel (HSG) shares rose by nearly 7% to 25,150 VND per share.
Dai Thien Steel (DTL) shares climbed by 6.9% to 14,750 VND per share.
Nam Kim Steel (NKG) shares went up by 4.3% to 26,800 VND per share.
Background:
The Ministry of Industry and Trade announced an investigation into galvanized steel imports from China and South Korea on June 14.
The investigation responds to requests from five major companies, including Hoa Sen Group Corporation and Nam Kim Steel Corporation.
Additionally, there is a request for an investigation into hot-rolled steel products from India and China, pushed by HPG and Formosa Ha Tinh Steel Corporation.
Market Context:
Vietnam previously imposed anti-dumping duties on galvanized steel from China and South Korea in 2017, which were lifted after five years.
Domestic steel producers face challenges due to lower-priced imported steel holding a larger market share.
Hoa Phat Group, Southeast Asia’s largest steel producer, is expanding its capacity, expecting revenue to nearly double by 2025 with the Dung Quat 2 project.
Financial Impact:
The growth in steel stock prices has significantly increased Tran Dinh Long’s wealth.
According to Forbes’ 2024 list, Tran Dinh Long’s assets grew by $800 million to $2.6 billion over the past year.
As of June 17, his net worth reached $2.7 billion, making him the third richest person in Vietnam, after Pham Nhat Vuong and Nguyen Thi Phuong Thao.
Market Outlook:
Despite strong selling pressure in the stock market, resulting in declines for other major stocks like Masan (MNS), BIDV (BID), FPT, and Mobile World (MWG), the overall market trend remains positive.
VNDirect suggests that the current market adjustment is minor and not indicative of a long-term downturn, supported by stable domestic macroeconomic conditions and improvements in key economic indicators.
Conclusion
Tran Dinh Long’s continued presence among Vietnam’s wealthiest individuals underscores the resilience and growth potential of the steel industry, particularly amid strategic economic measures such as anti-dumping investigations. The performance of steel stocks and the broader market trends suggest a stable economic outlook for Vietnam, despite short-term fluctuations in stock prices.
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