VINAUSTEEL COMPANY LIMITED

VINAUSTEEL Company Limited, headquartered in Hai Phong City, stands as a long-established foreign-invested enterprise in Vietnam’s steel industry. With a history spanning over 30 years since its registration in June 1994, the company has built its reputation on manufacturing high-quality construction-grade steel, particularly rebar of sizes D10 to D32. Its strategic location in Vat Cach, a renowned industrial hub in northern Vietnam, enables it to serve both domestic and international markets efficiently, supported by representative offices in Hanoi and Ho Chi Minh City.

Legally registered as a one-member limited liability company, VINAUSTEEL operates with a charter capital of approximately USD 5.82 million. As of the end of 2023, the company maintains its active status with full paid-in capital. It is a joint venture between foreign and domestic interests, with 70% owned by Vietnam Industrial Investments Ltd., a firm based in Perth, Australia, and the remaining 30% held by Viet Nam Steel Corporation, a major Vietnamese state-owned enterprise. This shareholder structure reflects the collaborative nature of Vietnam’s industrial development, blending foreign capital with local state-backed support.

Leading the company is Mr. Ngo D. K., who holds the dual role of General Director and Deputy General Director. Supporting him in financial oversight is Ms. Bui T. H., the Chief Accountant. Together, this executive team oversees a workforce of 280 employees. The management appears to operate with a hands-on structure, where leadership roles are concentrated and decision-making is closely tied to key individuals—characteristic of many joint-venture manufacturing firms in Vietnam.

From a financial standpoint, VINAUSTEEL experienced a sharp contraction in 2023. Total assets declined slightly to USD 33.26 million, marking a third consecutive year of asset reduction. While the company's owner's equity grew modestly by 5.2% to USD 7.71 million, sales revenue dropped significantly by over 30% to USD 153.67 million. More striking was the collapse in profitability, with net profit plummeting from over USD 3.3 million in 2022 to just USD 381,414 in 2023—a staggering 88.64% decrease. This trend suggests the company is struggling to manage operational costs or suffering from weakened demand in the construction steel market, possibly linked to broader economic slowdowns or shifts in Vietnam’s infrastructure investment cycle.

Despite these financial setbacks, the company maintains a positive working capital of USD 8 million, indicating that its short-term liquidity position remains stable for now. However, the overall erosion of profits and the multi-year decline in assets raise important questions about future investment, competitiveness, and whether the company is effectively positioned to weather further headwinds in the construction and industrial materials sectors.

VINAUSTEEL’s challenges are emblematic of a broader trend in Vietnam’s steel industry, which faces overcapacity, increased competition, and exposure to global commodity price fluctuations. Yet its deep-rooted presence, international backing, and technical focus provide a potential platform for recovery—should the company realign its strategy and improve operational efficiency. The next few years will be critical in determining whether VINAUSTEEL can reclaim its growth momentum or continue navigating the margins of a highly volatile industry.