Brian Jeffrey
In its 2023 annual report, Formosa Plastics Group subsidiary in Vietnam, Formosa HaTinh, reported a loss of 20.1 billion Taiwanese dollars ($615 million), attributing it to decreased revenue despite a slight drop in input material prices.
The steel manufacturer also faced a loss of 10 billion Taiwanese dollars in 2022, resulting in a total loss of 30 billion Taiwanese dollars ($900 million) over two years, following a profitable year in 2021.
The losses from Formosa HaTinh impacted the provincial budget due to its significant presence as the largest foreign-invested enterprise in the province since 2008.
Various steel mills, including Formosa HaTinh, encountered challenges in 2022-2023 caused by a global drop in demand, particularly in China, as its real estate market slowed down, leading to reduced steel consumption.
Domestic steel companies like Hoa Phat Group faced financial difficulties in 2022 and part of 2023, with some reporting losses while others managed to achieve modest profits compared to previous years.
The first quarter of 2024 brought some relief to the steel industry, with larger steel mills showing positive signs of profitability amidst ongoing challenges like low demand, influx of cheap steel imports, and exchange rate fluctuations.
Stock market analysts observed a rise in steel share prices following Vietnam’s investigation into anti-dumping measures against imported galvanized steel products from China and South Korea, signaling optimism in the industry.
