VINA KYOEI STEEL COMPANY LIMITED

VINA KYOEI STEEL COMPANY LIMITED (CÔNG TY TNHH THÉP VINA KYOEI): A Leading FDI Steel Manufacturer Grappling with Market Contraction

VINA KYOEI STEEL COMPANY LIMITED (VKS), business registration number 3500106761, is a long-established foreign direct investment (FDI) enterprise in Vietnam’s construction steel industry. Operating since 1994 and headquartered in Phú Mỹ I Industrial Park, Bà Rịa – Vũng Tàu Province, the company is one of Vietnam’s most prominent producers of construction-grade steel, with a legacy built on international partnership and domestic integration. Despite its deep-rooted position and substantial asset base, the company is currently facing considerable financial headwinds.

A Triangular Ownership Model Anchored by Japanese and Vietnamese Stakeholders

VINA KYOEI STEEL is majority owned by Kyoei Steel Ltd (Japan) with a 45% stake, alongside Vietnam Steel Corporation (VNSTEEL) holding 40%, and two additional minority investors—Mitsui & Co., Ltd (9%) and Marubeni-Itochu Steel Pte Ltd (6%). This blend of Japanese precision and Vietnamese market grounding has long been seen as a strategic advantage in a sector where both global scale and local adaptability are crucial.

The company is led by Mr. Hidekazu Fukunishi, a Japanese national serving as General Director, supported by a team of fellow Japanese deputy directors. With approximately 600 employees, the company operates production and sales branches in both Bà Rịa – Vũng Tàu and Ho Chi Minh City, making it a critical link in Vietnam’s southern construction materials supply chain.

2023 Financial Overview: Deep Declines, Yet Survival

2023 was a challenging year for VINA KYOEI STEEL, marked by major declines across all key financial indicators:

• Total revenue plunged by 42.58%, dropping from USD 505.1 million in 2022 to USD 290.06 million.

• The company recorded a net loss of USD 22.06 million, following a loss of nearly USD 19.88 million the previous year. This reflects a two-year profit collapse after a profitable run in 2021.

• Total assets shrank by 27.5%, down to USD 261.18 million from over USD 389 million in 2021.

• Owner’s equity also dropped by over 24%, now standing at USD 68.57 million, while working capital turned negative at USD -7.01 million.

These figures signal not just operational difficulty, but likely ongoing pricing pressures, weakened demand in the construction sector, and elevated input costs. Given its strong capital base and long-term industrial footprint, VINA KYOEI is unlikely to be at risk of collapse—but it is clearly in the midst of a serious financial recalibration.

Defending the Downturn: Industry Context Matters

To fairly assess VINA KYOEI STEEL’s performance, one must recognize the broader industry headwinds. Vietnam’s steel sector faced a perfect storm in 2023:

• Sluggish real estate and infrastructure investment dampened steel demand across Asia.

• High interest rates and tightened lending in Vietnam curtailed new construction projects.

• Cheaper imports from China and other markets added pressure to domestic pricing.

In this context, even major domestic players like Hoa Phat Group and Pomina Steel reported sharp contractions or net losses. For VINA KYOEI—a company heavily exposed to construction steel and rebar markets—the losses are not evidence of internal failure, but rather a reflection of cyclical downturns in a commodity-dependent sector.

Strategic Strengths That Shouldn’t Be Overlooked

Despite the current downturn, VINA KYOEI STEEL retains several core advantages:

• Strong international shareholders with capital, technical expertise, and global market insight.

• Long-standing industrial presence, with more than 30 years of continuous operation in Vietnam.

• A reputation for high-quality steel products that adhere to Japanese and international standards—key in public infrastructure projects.

• An asset base of over USD 260 million, offering room for restructuring and operational endurance.

Verified Intelligence for Cautious Stakeholders

When working with large-scale manufacturers experiencing downturns, external stakeholders must proceed with careful but informed judgment. This is where VANGUARD BUSINESS INFORMATION LLC (VBI) plays a pivotal role. Through independent company credit reports, capital structure reviews, working capital analysis, and risk profiling, VBI allows banks, suppliers, investors, and trade partners to assess the difference between cyclical distress and structural instability.

VBI’s verified data shows that while VINA KYOEI STEEL is in the red, it retains the foundations of recovery, provided the market stabilizes and strategic reforms are enacted.

Conclusion

VINA KYOEI STEEL COMPANY LIMITED is facing its toughest period in over a decade, with significant losses and contracting revenue. Yet this is not a sudden collapse—it is part of a sector-wide correction in a volatile macroeconomic cycle. Backed by reputable shareholders, a deep asset base, and three decades of operations, the company has the means to regroup and rebuild. The next few years will be a test—not of survival, but of adaptation. With proper restructuring and industry rebound, VINA KYOEI STEEL may yet return to profitability—and stakeholders can track this journey with confidence, thanks to the verified insights of VBI.