Group 2 (ME 03) - Hoa Phat Group

7/25/2019 Group 2 (ME 03) - Hoa Phat Group

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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY 1

Case study: Hoa Phat Grou Jo!"t Sto#$ Co%a"y

Grou &

N'uy(" Th)y D*+"' ,-11.1/&/.10

23 Th4"h Da"h ,-11.1/&-560

Pha" Th7 Th)y D*+"' ,-11.1/&&8..

Ma"a'er!a9 E#o"o%!#s ,C9ass MEDH./IS;/-

I"stru#tor: Ph"h 2o"'


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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY &

Case study: Hoa Phat Grou Jo!"t Sto#$ Co%a"y

Hoa Phat Grou !s o"e o? the 9ead!"' r!@ate !"dustr!a9 rodu#t!o" 'rous !" !et"a%

B!th the @!s!o" to e#o%e a 9ead!"' %u9t!d!s#!9!"ary !"dustr!a9 %a"u?a#turer !" !et"a% Be99

reared ?or '9oa9 !"te'rat!o" B!th stee9 rodu#t!o" as !ts #ore us!"ess a#t!@!tyF !th a 9o"'

h!story o? de@e9o%e"t Hoa Phat 'rou has 'a!"ed s!'"!?!#a"t a#h!e@e%e"ts a"d reutat!o" !"

do%est!# %ar$etF Re'ard!"' the #ha"'!"' e#o"o%!# #o"d!t!o" a"d us!"ess e"@!ro"%e"t the

Grou !s ?a#!"' "oteBorthy #ha99e"'es a"d oortu"!t!es Bh!#h are a"a9yed a"d ar'ued !" th!s

aerF

Background

History

Hoa Phat Grou Bas ?ou"ded !" Au'ust 166& as a trad!"' #o%a"y se#!a9!!"' !"

#o"stru#t!o" %a#h!"esF O@er the t!%e !t ete"ded the us!"ess !" d!??ere"t ?!e9d su#h as

ur"!ture Stee9 P!e Stee9 Re?r!'erat!o" a"d Rea9 Estate y esta9!sh!"' Hoa Phat ur"!ture

Jo!"t Sto#$ Co%a"y ,1665 Hoa Phat Stee9 P!e CoF 2td ,166L Hoa Phat Stee9 Jo!"t Sto#$

Co%a"y ,&/// Bh!#h !s "oB Hoa Phat Stee9 O"e Me%er CoF 2td Hoa Phat Re?r!'erat!o"

E"'!"eer!"' CoF 2td ,&//1 Hoa Phat Ura" De@e9o%e"t a"d Co"stru#t!o" Jo!"t Sto#$

Co%a"y ,&//1 a"d Hoa Phat Trad!"' CoF 2td ,&//.F

I" &//0 there Bere so%e s!'"!?!#a"t #ha"'es !" the #o%a"yF I" Ja"uary &//0 Hoa Phat

restru#tured to a Grou %ode9 !" Bh!#h Hoa Phat Grou Jo!"t Sto#$ Co%a"y !s the are"t

#o%a"y o? !ts sus!d!ar!es a"d a??!9!atesF I" No@e%er 15 &//0 Hoa Phat Bas o??!#!a99y 9!sted

!" the !et"a% Sto#$ E#ha"'e B!th t!#$er HPGF A?ter the restru#ture Hoa Phat has %a"y

'reat str!des !" Bh!#h the %ost ro%!"e"t ro'ress Bas !%9e%e"t!"' o? Hoa Phat stee9


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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY -

!"te'rated #o%9e roe#t !" Ha! Duo"' ro@!"#e B!th the stee9 rodu#t!o" te#h"o9o'y ?ro%

!ro" ore to stee9 a"d !"@est to e9o!t %!"era9s to #reate !"ut ?or stee9 rodu#t!o"F

&//8 Bas a year B!th %a"y d!??!#u9t!es !" e#o"o%!# e"@!ro"%e"t su#h as r!s!"' !"terest

rates e#ha"'e rate ?9u#tuat!o"s @o9at!9!ty !" the r!#e o? r!%ary #o%%od!t!es !" the Bor9d a"d

!" !et"a% due to the #r!s!s !" the Bor9d e#o"o%yF Des!te the o@era99 osta#9e o? the Bho9e

!"dustry at the e"d o? the year Hoa Phat st!99 rese"ted the os!t!@e resu9t !" the oerat!o" o? the

Grou: retur" o" eu!ty ,ROE rea#h!"' &1 h!'her tha" that o? &//0 ,&/ retur" o" tota9

assets ,ROA rea#hed 15 !" &//8 #o%ared to 1. !" &//0F I" 9ate &//8 the tota9 assets o? the

Grou rea#hed 5L-6 !99!o" Eu!ty rea#hed .111 !99!o"F

I" &//6 Hoa Phat Grou a#u!red A" Tho"' M!"!"' !"@est%e"t Jo!"t Sto#$ Co%a"y

a"d Hoa Phat E"er'y Jo!"t Sto#$ Co%a"y as a s!'"a9 to ea"d the oerat!o" !" %!"!"' a"d

e"er'y to suort the stee9 rodu#t!o" ro#essF

Se#!a99y !" &/15 Hoa Phat o??!#!a99y 9au"#hed Hoa Phat eeds Produ#t!o" Q Trad!"'

O"e Me%er 2!%!ted 2!a!9!ty Co%a"y %ar$!"' a "eB ste !" the 'rous de@e9o%e"t h!story

y e"etrat!"' the a'r!#u9tura9 se#tor B!th a #harter #a!ta9 o? ND-// !99!o" a"d a #aa#!ty

des!'"ed to rea#h -///// to""es er yearF E"ter!"' !"to a'r!#u9ture se#tors ra!ses a "u%er o?

uest!o"s a"d douts a%o"' shareho9ders o? the Grou as Hoa Phat a#tua99y eer!e"#ed 9osses

!" th!s se#tor !" &/15F HoBe@er !" the shareho9ders %eet!"' !" uarter 1 &/1L the Grou d!d

#9a!% that the e"etrat!o" !"to a'r!#u9ture !s the strate'!# ste o? Hoa Phat 9o"'ru" de@e9o%e"t

,Tu 2!"h Ca?e?F

The ae"d! ro@!des %ore deta!9ed !"?or%at!o" aout the h!stor!# %!9esto"e o? Hoa

Phat GrouF


4/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY .

GroupStructure

O@ert!%e Hoa Phat has ee" #o"t!"uous9y ea"ded !ts s!e a"d oerat!o"F As o? &6

eruary &/1L the Hoa Phat 'rou had 18 sus!d!ar!es a"d 1 asso#!ate ,Hoa Phat SSG M!"!"'

Jo!"t Sto#$ Co%a"yF


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,Hoa Phat Grous &/15 A""ua9 Reort

Current Business Performance

;y the e"d o? &/15 the 'rou a#h!e@ed re@e"ue o? ND&08L. !99!o" a"d ro?!t a?ter ta

o? ND-5/. !99!o" e#eed!"' the set tar'ets y &. a"d 8 rese#t!@e9y a" !"#rease o? 8


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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY L

as #o%ared to &/1.FThe %a!" a#t!@!t!es o? Hoa Phat Grou #a" e d!@!ded !"to ?our 'rous

Bh!#h are stee9 other !"dustr!a9 rodu#t!o" rea9 estate a"d a'r!#u9tureF The #ore se'%e"t stee9

rodu#t!o" a"d trad!"' a##ou"ted ?or 06F. o? the 'rous re@e"ue a"d 8&F- o? !ts ro?!t

#o"tr!ut!"' to the so9!d 9at?or% a"d !"ter"a9 ?or#e ased o" Bh!#h the Hoa Phat 'rou B!99

oost !ts 'roBth !" the ?uture B!th !ts "eB se'%e"t !FeF a'r!#u9tureF The ?or% o? #o"'9o%erate

a99oBs Hoa Phat to ha@e stro"' ?!"a"#!a9 suort to !"@est !" "eB se'%e"t ased o" the ro?!t o?

the r!%ary se'%e"tF The ?o99oB!"' #harts shoB the #o"tr!ut!o" o? ea#h se#tor !"to the Grous

ro?!t a"d re@e"ueF


7/42



Re'ard!"' 9!a!9!t!es a"d dets Hoa Phats det rat!o eer!e"#ed a de#rease o@er the ast

three years ?ro% 1F.& !" &/1- to /F0L !" &/15 Bh!#h %ea"s the r!s$ o? ?a!9ure to ay has ee"

redu#edF The a"$ orroB!"' to eu!ty rat!o !" &/15 Bas /F.0 #o"s!dered to e a sa?e !"d!#ator

?or a ty!#a9 hea@y !"dustr!a9 rodu#t!o" 'rouF


8/42



The oB"ers eu!ty the oB"ers eu!ty o? the 'rou as at -1 De#e%er &/15 Bas

ND1..LL !99!o" shoB!"' s!'"!?!#a"t 'roBth ?ro% ND116L5 !99!o" at the e'!""!"' o? the

year due to d!@!de"d ay%e"t y shareF Th!s !"#rease !" #a!ta9 #a" ?!"a"#e the Grou to !"@est

!" "eB roe#tF Retur" o" Assets ,ROA a"d retur" o" eu!ty ,ROE rat!os de#reased s9!'ht9y

s!"#e "eB roe#t has "ot ee" ut !"to oerat!o" to y!e9d re@e"ueF


Steel Production and Related Industries

Overview of Vietnam steel industry

The !ro" a"d stee9 !"dustry !s the as!# ?or the de@e9o%e"t o? a9%ost !"dustr!es !" the

'9oa9 e#o"o%y: the de?e"se !"dustry tra"sortat!o" a"d hea@y e"'!"eer!"' e"er'y a"d

#o"stru#t!o" ,!"#9ud!"' aero"aut!#a9 a"d sh!!"' #o"stru#t!o"F Moreo@er the !ro" a"d stee9

!"dustry !s #9ose9y re9ated to #he%!#a9 !"dustry a"d 9!'ht !"dustryF It ro@es that the !ro" a"d stee9


9/42


!"dustry has ote"t!a9 to #o"tr!ute to the #o%et!t!@e"ess o? "at!o" rodu#ers a"d to the 'roBth

o? the "at!o" e#o"o%yF

The or9d Stee9 Asso#!at!o" ,Bor9d stee9 today re9eased !ts Short Ra"'e Out9oo$ ,SRO

?or &/15 a"d &/1LF or9d stee9 ?ore#asts that '9oa9 aare"t stee9 use B!99 !"#rease y /F5 to

15.. Mt !" &/15 ?o99oB!"' 'roBth o? /FL !" &/1.F I" &/1L !t !s ?ore#ast that Bor9d stee9

de%a"d B!99 'roB y 1F. a"d B!99 rea#h 15L5 MtF The out9oo$ ?or the stee9 !"dustry su''ests

s9oB 'roBth ?or '9oa9 stee9 de%a"dF Co%%e"t!"' o" the out9oo$ Ha"s Jr'e" Ker$ho??

Cha!r%a" o? the Bor9d stee9 E#o"o%!#s Co%%!ttee sa!d e are re9eas!"' a restra!"ed 'roBth

out9oo$ ?or the '9oa9 stee9 !"dustry %a!"9y due to the de#e9erat!o" !" Ch!"aF The out9oo$ a9so

re?9e#ts the !"?9ue"#e o? %aor stru#tura9 adust%e"ts !" %ost e#o"o%!es art!#u9ar9y oB!"' to

9!%!ted !"@est%e"t 'roBth ost &//8F As these #ha"'es ta$e e??e#t the stee9 !"dustry B!99

eer!e"#e a s9oBer a#e o? 'roBth !t B!99 ?o#us o" oerat!o"a9 e??!#!e"#!es a"d o" the @a9ue that

stee9 rodu#ts 'e"erate ?or #usto%ers a"d so#!etyF

h!9e Be #o"t!"ue to ?a#e so%e doB"s!de r!s$s #o%!"' ?ro% so%e arts o? Euroe 'eoo9!t!#a9 !"sta!9!ty !"ter"at!o"a9 #a!ta9 ?9oB @o9at!9!ty a"d the e#o"o%!# s9oBdoB" !" Ch!"a

the !%a#t o? these r!s$s has #o%e doB"F e ha@e a9so started to see so%e e"#oura'!"'

de@e9o%e"tsF e hear !"#reas!"'9y os!t!@e "eBs ?ro% de@e9oed e#o"o%!es ese#!a99y s!'"s

o? ?!r%!"' re#o@ery %o%e"tu% !" the Euroo"eF I" the de@e9o!"' a"d e%er'!"' Bor9d Be see

!"#reased ot!%!s% aout I"d!a a"d 'roBth !" stee9 use !" so%e MENA a"d ASEAN #ou"tr!esF

h!9e these de@e9o%e"ts B!99 "ot e e"ou'h to #ou"tera9a"#e the de#e9erat!o" o? Ch!"a Be

ee#t to see 'radua99y !%ro@!"' 'roBth rose#ts eyo"d &/1L Ker$o?? #o"#9udedF A"

!"terest!"' ?a#tor Bh!#h has e#o%e !"#reas!"'9y aare"t !s that !" so%e de@e9o!"' e#o"o%!es

the stee9 %ar$ets are e'!""!"' to eh!!t the #hara#ter!st!#s o? %ature %ar$etsF


10/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY 1/

I" add!t!o" the stee9 !"dustry !s o"e o? the #ore !"dustr!es o? !et"a% Bh!#h suort

de@e9o%e"t o? the #ou"try ese#!a99y !"?rastru#ture de@e9o%e"tF !et"a%s stee9 !"dustry saB

a re@!@a9 !" &/1. B!th h!'h de%a"d a"d !%ro@ed %a#roe#o"o%!# #o"d!t!o"sF Reou"d o? the

?roe" rea9 estate %ar$et the %a!" stee9 #o"su%er !" !et"a% #ou9ed B!th re9aed %o"etary

a"d ?!s#a9 o9!#!es dur!"' the year #aused the de%a"d to r!seF !et"a%s aare"t stee9

#o"su%t!o" sur'ed y && yy to 1.F.%" to""es !" &/1. %a$!"' !t the se#o"d9ar'est stee9

#o"su%!"' #ou"try !" ASEANF !et"a% Stee9 Asso#!at!o" ,SA est!%ates do%est!# stee9

#o"su%t!o" to !"#rease y 1F5&%" to""es !" &/15 a%!d h!'her GDP 'roBth a"d !"#reases !"


11/42


oth eort tur"o@er a"d tota9 !"@est%e"tF Moreo@er #o"tro99ed !"?9at!o" a"d !"terest rate #uts

B!99 9ead to h!'her de%a"d ?ro% the #o"stru#t!o" a"d rea9 estate se#tors Bh!9e other stee9

#o"su%!"' !"dustr!es su#h as sh!u!9d!"' auto%o!9e %a"u?a#tur!"' a"d %e#ha"!#a9

e"'!"eer!"' B!99 a9so see hea9thy 'roBthF Pote"t!a9 ?or 9o"'ter% ea"s!o" o? the !et"a%ese

stee9 !"dustry !s stro"' ut !t st!99 ?a#es so%e d!??!#u9t!es !" ter%s o? the hu'e #hea stee9

!%ortat!o" ?ro% Ch!"a a"d stee de#9!"e !" se99!"' r!#esF

Ta9e 1 shoBs the su9ya"dde%a"d re9at!o"sh! !" the stee9 !"dustry !" East As!a"

#ou"tr!esF The !et"a%ese stee9 !"dustry 9a's de@e9oed #ou"tr!es a"d other ASEAN #ou"tr!es !"

rodu#t!o" a"d #o"su%t!o" o? stee9F HoBe@er the !"dustry es#aed se@ere da%a'e dur!"' As!a"

%o"etary #r!s!s a"d the 'roBth !" de%a"d has #o"t!"uedF

!a"le # !$e steel consumption and crude steel production in %ast &sia '(nit million ton)

Aare"t stee9 #o"su%t!o" Crude stee9 rodu#t!o"

6L 60 68 66 6L 60 68 66

Ch!"a 60F- 1/-F5 11-F6 1&5F/ 1/1F& 1/8F6 11.FL 1&-F-

Jaa" 8/FL 8&F1 0/F- L8F- 68F8 1/.F5 6-F5 6.F&

Korea -0FL -8F1 &.F6 -&F1 -8F6 .&FL -6F6 .1F/

Ta!Ba" 18F/ &1F/ &/F& &/F- 1&F. 1-F/ 1LF6 15F.

ASEAN I"do"es!a LF- LF8 &F8 -F5 .F1 -F8 &F0 &F8

Ma9ays!a 0F6 8F1 -FL "FaF -F& -F/ 1F6 &F/

Tha!9a"d 8F8 0FL .F1 "FaF &F1 &F1 1F8 1F6

Ph!9!!"es &F8 .F& -F/ -F/ /F6 1F/ /F6 /F6

S!"'aore -F8 .F/ -F- &F6 /F5 /F. /F5 /F5

!et Na% 1FL 1F0 1F6 &F- /F- /F- /F- /F-

-1F& -1F8 16F5 "FaF 11F& 1/FL 8F1 8F5

Tota9 East As!a &L.F0 &0LF5 &.8F8 "FaF &L&F5 &8&FL &0-F/ &8&F.

Tota9 or9d L58F0 L68F& L6-F- L68F8 05/F/ 068F8 005F6 08.F&


12/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY 1&

Sour#e: Ed!ted y Jaa" Iro" a"d Stee9 ederat!o" ?ro% data o? South East As!a Iro" a"d Stee9

I"st!tute

Ta9e & shoBs su9y a"d de%a"d !" the !et"a%ese stee9 !"dustryF It !"d!#ates that

rodu#t!o" #a""ot $ee a#e B!th the 'roBth !" #o"su%t!o" o? stee9 rodu#ts a"d !%orts are

!"#reas!"'F Ta9e - ro@!des a rea$doB" o? !%orted stee9 %ater!a9s B!th ?9at rodu#ts e!"'

the %a!" !%ortF Aart ?ro% ?!"!shed stee9 %ater!a9s the !%orts o? !99et se%!?!"!shed rodu#t

?or 9o"' rodu#ts are !"#reas!"' as shoB" !" Ta9e .F As Ta9es & a"d - shoB the rodu#t!o"

?!'ure ?or &/// !s $"oB" ut rea$doB" o? de%a"d !s "otF

!a"le *+ Steel production, consumption and import situation from #--* to *... /e"ruary 0,

*..#

#+ Steel products (nit #,...t

#--* #--1 #--2 #--0 #--3 #--4 #--5 #--- *...

,estF

*..#

,ee#tF

Steel

consumption

03. 531 502 #,#5. #,315 #,5** *,#*5 *,14- *,50. 1,#4.

6omestic

production

,2o"' rodu#t

**. *5. 13. 2-. 530 -44 #,#0. #,1.. #,055 #,44.

SC -0/ .L. ..- .L. .L. 5./

Js o? SC L8 -51 .8. 58L L08 8-0

Others 5& 5/ 5/ 1// 15/ -6-

Import 121 353 3.. 533 -24 5.4 -#4 #,#23 #,2*- #,2..

Stock


13/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY 1-

. 1 #.3 . #43 10. 1#* *0# 1#5 250at "eginning

at ending 1 #.3 . #43 10. 1#* *0# 1#5 250 250

Sour#e: SC ,?ro% MrF Ta"a$a JICA EertF

!a"le 1+ Imports of finis$ed steel products '(nit #+... tons)

Year 1668 1666

Tota9 8.L 11..

9at Produ#ts L85 6LL

P9ate &-. &6&

Sheets a"d str! -.& 5L.

Hot ro99ed sheets a"d str! 1LL &0-

Co9d ro99ed sheets a"d str! 10L &61Sur?a#e treat%e"t sheets 1// 1/-

T!" 9ate &5 &L

Ga9@a"!ed sheets &0 1L

Co9ored 'a9@a"!ed sheets .8 L&

E9e#tr!#a9 sheets 6 0

No" ?9at rodu#ts 1L& 108

Sta!"9ess stee9 && .&

Stee9 rodu#ts ?or#o"stru#t! 11 1-

Se#t!o"s a"d shaes 5- .0Stru#tura9 stee9 && &L

Sr!"' stee9 / /

!re rod 11 1.

Other rodu#ts .- -L

Sour#e: Ge"era9 Custo%s O??!#e SCF

Vuoted ?ro% CRM S Reort&&F

!a"le 2+ Billet demand and production7import (nit #,...t

#--* #--1 #--2 #--0 #--3 #--4 #--5 #--- *...

,estF

*..#

,ee#tF

A Stee9 &&/ &8/ -L/ .6/ 8&L 60L 115/ 1-// 155/ 100/

; ;!99et de%a"dW &L5 --- .&. 50L 618 1/0- 1&L5 1.-/ 101& 165L


14/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY 1.

C ;!99et ,do%est!#

rodu#t!o"

,&16 ,&0/ ,-/1 ,&01 ,-11 ,-1. -/L -/0 -/L -6L

6 Billet ,outs!de

'B8C)

23 31 #*1 1.0 3.4 40- -0- #,#*1 #,2.3 #,03.

, : ?ro% IISI stat!st!#s

W : est!%ated A; ,y!e9d o? ro99!"' X 8- 6/F5

Sour#e: SC ,?ro% MrF Ta"a$a JICA EertF

!et"a%s stee9 !"dustry !s do%!"ated y rodu#ers o? #o"stru#t!o" stee9 rodu#ts su#h as

rearF The "ota9e e#et!o" !s Hoa Se" Grou Bh!#h rodu#es 'a9@a"!sed stee9 sheets that are

a9so used ete"s!@e9y !" the #o"stru#t!o" !"dustryF There are &0 %aor #o"stru#t!o" stee9

%a"u?a#turers the to ?!@e o? Bh!#h ha@e a #o99e#t!@e %ar$et share o? "ear9y L/F The %ar$et

9eaders are HPG B!th a %ar$et share o? 16F1 ,&/1. a"d &1F- ,&/15 POM B!th 15F1

,&/1. a"d 1&FL ,&/15 !"a$yoe! B!th 8F. ,&/1. a"d 8F5 ,&/15 %ar$et shareF

Aout ./.5 o? !et"a%s #o"stru#t!o" stee9 de%a"d #o%es ?ro% the "orthF

Co%et!t!@e ressure !" th!s 'eo'rah!# re'!o" !s !"te"se e#ause %a"y 9ar'e #o"stru#t!o" stee9

#o%a"!es su#h as HPG TISCO a"d IS are 9o#ated there as are te"s o? s%a99to %ed!u%s!ed

#o%a"!es !" the ort #!ty o? Ha! Pho"'F The souther" %ar$et rerese"ts aout 55L/ o?

!et"a%s stee9 %ar$et de%a"d ut the #o%et!t!o" !" the south !s 9ess !"te"se e#ause there are

"ot as %a"y #o%et!tors a"d %ost o? the #o%et!tors B!th oso9ete ?a#tor!es are stateoB"edF

O"9y POM a"d !"a$yoe! ha@e %oder" ?a#tor!es B!th su??!#!e"t e#o"o%!es o? s#a9eF The se99!"'r!#e o? #o"stru#t!o" stee9 !" the south !s usua99y s9!'ht9y h!'her tha" !" the "orth e#ause %ost

stee9 #o%a"!es !" !et"a% !%ort raB %ater!a9s su#h as s#ra ?ro% Ch!"a Korea a"d Jaa"F

The tra"sortat!o" #ost ?ro% these #ou"tr!es !" "orth As!a to the "orth o? !et"a% !s 9oBer tha"


15/42


to the south o? !et"a% ut "orther" rodu#ers #a""ot use those #ost ad@a"ta'es to #o%ete

a'a!"st souther" rodu#ers e#ause tra"sortat!o" #osts ?or ?!"!shed stee9 rodu#ts are roh!!t!@e

?or d!sta"#es o@er 1///$% resu9t!"' !" h!'her stee9 r!#es !" the southF The souther" %ar$et has

a9so ee" d!sroort!o"ate9y h!t y the o"'o!"' e#o"o%!# s9oBdoB" !" !et"a%F Ma"y o? the

'o@er"%e"ts !"?rastru#ture #o"stru#t!o" roe#ts are #o"#e"trated !" the "orth a"d are st!99 e!"'

!%9e%e"ted a9e!t at a s9oBer a#e Bh!9e %a"y r!@ate9yde@e9oed rea9 estate a"d

!"?rastru#ture roe#ts !" the south ha@e ee" ?or#ed to ha9t due to ?!"a"#!a9 d!??!#u9t!esF

!"a99y "ote that HPG a"d ,u"9!sted TISCO the o"9y tBo stee9 rodu#ers !" !et"a%

B!th 9ast ?ur"a#es oth oB" !ro" ore %!"es !" the "orthF Iro" ore reser@es !" the south o?

!et"a% are 9!%!ted Bh!#h !s o"e reaso" Bhy souther" rodu#ers use EA te#h"o9o'y to re#y#9e

stee9 s#raF

Produ#t!o" o? stee9 9ate a"d re9ated se#tors #o"t!"ue to e the 9ead!"' !"dustry 'rous to

ro%ote 'roBth ?or Hoa Phat 'rouF I" the ast year th!s !"dustry 'rou has #o"tr!uted 8&F-

06F. re@e"ue a"d ro?!t a?ter ta o" 'rouB!de #o%%o" resu9tsF

Hoa P$at Operation


16/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY 1L

Vertical integrated, modern sync$roni9ed full circle production lines from iron ore

to finis$ed steel+ O??!#!a99y oerat!"' !" ear9y &/1/ B!th the 9ar'es#a9e u to 1-&ha Hoa Phat

I"te'rated Stee9 Co%9e #o"s!sts o? a ?u99 #!r#9es #9uster !"#9ud!"' Iro" ore ro#ess!"' ?a#tory

#oa9 #o$!"' a"d ther%a9 e9e#tr!#!ty 9a"t Iro" #ast ro#ess!"' ?a#tory ;!99et #ast!"' ?a#tory a"d

Stee9 ro99!"' %!99F I" &/15 the ?!rst !ro" a"d stee9 #o%9e !" Ha! Duo"' rea#hed 1F1 %!99!o" to"s

outut o" e%ryos o? Bh!#h 1 %!99!o" to"s ha@e a9ready ee" ro99ed out stee9 u!9d!"' rodu#ts

ser@e the "eeds o? the do%est!# a"d ?ore!'" %ar$etsF Th!s ?u99 #!r#9e rodu#t!o" 9!"es #a" ta$e

ad@a"ta'e o? #ost #o%9e%e"tar!ty a"d e#o"o%!es o? s#oe to redu#e #ost s!'"!?!#a"t9y a"d

%a$e Hoa Phats rodu#t!o" 9ess dee"d o" other su9yF

Input+ !th the a9!#at!o" o? 9ast ?ur"a#e te#h"o9o'y The !"ut o? Hoa Phats

rodu#t!o" 9!"e are #o$e a"d !ro" oreF

Co$e !s a so9!d #aro" ?ue9 a"d #aro" sour#e used to %e9t a"d redu#e !ro" oreF Co$e

rodu#t!o" e'!"s B!th u9@er!ed !tu%!"ous #oa9F The #oa9 !s ?ed !"to a #o$e o@e" Bh!#h !s

sea9ed a"d heated to @ery h!'h te%eratures ?or 1. to -L hoursF Co$e !s rodu#ed !" at#hro#esses B!th %u9t!9e #o$e o@e"s oerat!"' s!%u9ta"eous9yF Heat !s ?reue"t9y tra"s?ered ?ro%

o"e o@e" to a"other to redu#e e"er'y reu!re%e"tsF A?ter the #o$e !s ?!"!shed !t !s %o@ed to a

ue"#h!"' toBer Bhere !t !s #oo9ed B!th Bater srayF O"#e #oo9ed the #o$e !s %o@ed d!re#t9y to

a" !ro" %e9t!"' ?ur"a#e or !"to stora'e ?or ?uture useF

Dur!"' !ro"%a$!"' !ro" ore #o$e heated a!r a"d 9!%esto"e or other ?9ues are ?ed !"to a

9ast ?ur"a#eF The heated a!r #auses the #o$e #o%ust!o" Bh!#h ro@!des the heat a"d #aro"

sour#es ?or !ro" rodu#t!o"F 2!%esto"e or other ?9ues %ay e added to rea#t B!th a"d re%o@e

the a#!d!# !%ur!t!es #a99ed s9a' ?ro% the %o9te" !ro"F The 9!%esto"e!%ur!t!es %!tures ?9oat

to the to o? the %o9te" !ro" a"d are s$!%%ed o?? see !'ure 1 a?ter %e9t!"' !s #o%9eteF


17/42


S!"ter!"' rodu#ts %ay a9so e added to the ?ur"a#eF S!"ter!"' !s a ro#ess !" Bh!#h so9!d

Bastes are #o%!"ed !"to a orous %ass that #a" the" e added to the 9ast ?ur"a#eF These Bastes

!"#9ude !ro" ore ?!"es o99ut!o" #o"tro9 dust #o$e reee Bater treat%e"t 9a"t s9ud'e a"d ?9uF

S!"ter!"' 9a"ts he9 redu#e so9!d Baste y #o%ust!"' Baste rodu#ts a"d #atur!"' tra#e !ro"

rese"t !" the %!tureF S!"ter!"' 9a"ts are "ot used at a99 stee9 rodu#t!o" ?a#!9!t!esF

Productivity+ A?ter re"o@at!"' ?ur"a#e a"d #o"t!"uous !99et #ast!"' %a#h!"e the

rodu#t!@!ty o? Hoa Phat stee9 !99et ?a#tory !" Pho No! A I"dustr!a9 ar$ Hu"' Ye" has

!"#reased &/ !" #o%ar!so" to 9ast yearF Stee9 !99et outut rea#hed 11/1// to"s !" the 5 ?!rst

%o"ths se#!?!#a99y ?or Ar!9 B!th &.0// to"s the h!'hest outut e@erF

The a@era'e %o"th9y outut rea#hed &&/// to"s a" !"#rease o? &/// to""es er %o"th

#o%ared to the a@era'e o? &/11F E9e#tr!#!ty #o"su%t!o" de#reased ?ro% ./ $h to 5/ $h

er to" o? rodu#tF E9e#trode #o"su%t!o" de#reased /F5 $' er to" o? !99etF These ?!'ures shoB

the e??e#t o? !"@est%e"t resear#h #o"t!"uous !%ro@e%e"t o" the eu!%e"t syste% that Hoa

Phat Stee9 Co%a"y 2!%!ted has !%9e%e"ted 9ast t!%eF

Mea"Bh!9e the eu!%e"t %a!"te"a"#e a#t!@!t!es are a9Bays ta$e" ser!ous9y re'u9ar a"d

str!#t #o%9!a"#e to %a"a'e%e"t ro#ess o? eu!%e"t rodu#t ua9!ty sta"dard ISO 6//1:

&//8F Dur!"' %a!"te"a"#e the oerat!"' deart%e"ts are "ot o"9y reso"s!9e ?or oerat!"' the

de@!#e syste% ut a9so #o"tro9 the status o? eu!%e"t syste% a"d t!%e9y ?eeda#$ to the

te#h"!#a9 deart%e"t ?or 9a""!"' %a!"te"a"#e ro'ra% #9ose to rea9!tyF

A?ter "ear9y 1/ years !" oerat!o" the ?!rst stee9 !99et %!99 !s !"#reas!"'9y #o"tr!ut!"' to

the de@e9o%e"t o? stee9 us!"ess ?!e9d o? Hoa Phat GrouF Throu'h %a"y re@!s!o"s the #urre"t

#aa#!ty o? th!s 9a"t has rea#hed &5//// to"s er yearF


18/42


Price+ 2oB r!#e e"a9e %ar$et share 'a!"sF Hoa Phat stee9s r!#e !s st!99 9oBer tha"

#o%et!tors ,!" ?a#t the ua9!ty a"d a%ou"t o? rodu#t !s as 'ood as the #o%et!ors rodu#tF

HPGs %ar$et share 'reB ?ro% 6 !" &//6 to 10 !" 1V1. surass!"' !ts %a!" #o%et!tor

Po%!"a ,POM:N Bhose %ar$et share droed to 15F- e@e" thou'h !ts #aa#!ty !s dou9e

HPGs #aa#!tyF The stee9 !"dustry !" !et"a% !s ?a!r9y ?ra'%e"ted a"d the to ?!@e rodu#ers

!"#9ud!"' HPG o"9y ho9d a" a''re'ate 50 share o? the %ar$et ,@ersus 8/ !" the #ase o? the

stee9 !"dustr!es o? other #ou"tr!es !" the re'!o"F That roort!o" has re%a!"ed #o"sta"t s!"#e

&/1/ ut HPGs %ar$et share !"#reased ?ro% 1& to 10 o@er the sa%e er!od Bh!#h %ea"s

that !t !s he9!"' to #o"so9!date the %ar$et 'radua99y at the ee"se o? !ts other %a!" #o%et!torsF

Hoa P$at:s Product Price

Produ#t Na%e U"!t o9u%e!9ePr!#eZ$'

Ro99 stee9 [ L K' 65//

Ro99 stee9 [ 8 K' 65//

Stee9 [ 1/ 1!9e,11F0% 0F&1 6L//

Stee9 [ 1& 1!9e,11F0% 1/F-6 65//

Stee9 [ 1. 1!9e,11F0% 1.F15 65//

Stee9 [ 1L 1 !9e ,11F0% 18F.0 65//

Stee9 [ 18 1 !9e ,11F0% &-F-8 65//

Stee9 [ &/ 1 !9e ,11F0% &8F85 65//

Stee9 [ && 1 !9e ,11F0% -.F61 65//

Stee9 [ &5 1 !9e ,11F0% .5F/6 65//


19/42


Stee9 [ &8 1 !9e ,11F0% 5LF5L 65//

Stee9 [ -& 1 !9e ,11F0% 0-F8- 65//

;ew product+ Re#e"t9y Hoa Phat 'rou JSC ,HPG a""ou"#ed o!"!"' the %ar$et B!th

#o9or #oated de#!ded to !"@est the roe#t a#tory Hoa Phat PPGI !" Pho No! A I"dustr!a9 \o"e

Hu"' Ye" a #aa#!ty o? .///// to""es yearF The ?a#tory started Bor$ ?ro% Ja"uary 5&/1L

#o%9eted a?ter 18 %o"ths a"d ut !"to oerat!o" !" ear9y &/18F The %ar$et 'a9@a"!!"' 9at!"'

#o9d a"d a!"ted !" !et"a% B!th a""ua9 #o"su%t!o" &F5 &F8 %!99!o" to"sF Curre"t9y the

rodu#t!o" #aa#!ty o? a99 the 9a"ts are oerat!"' !s aout -F& -F5 %!99!o" to"s yearF Most o?

the ?a#tor!es are 9o#ated !" the souther" re'!o" su#h as rese#t To" Hoa Se" !" ;!"h Duo"' a"d

Phu My !et"a% a#tory K!% a"d re9!'!ous r!"#!9es are ased !" the East As!a Pa#!?!# !"

add!t!o" to other ?a#tor!es as TP TC To" Phuo# Kha"h FFF are 9o#ated !" the southF Re@!eBs

aout th!s that Hoa Phat HSC CTCK B!99 d!re#t9y #o%ete B!th To" Hoa Se" %ar$et !" the

North Bhe" the ]!' oss] th!s #oated !"dustry are 'roB!"' a%!t!o"sF

A##ord!"' to Hoa Phat Grou Jo!"t Sto#$ Co%a"y Hoa Phat Stee9 Cororat!o" !s a9so

ee#ted to ro@!de rodu#t!o" Be9d!"' stee9 o" uarter -&/1L to #o"tr!ute to he9 us!"esses

!" the Be9d!"' %ater!a9s are "atura9 Bater !"!t!at!@e rodu#t!o" a"d a@o!d dee"de"#e o" !%ortsF

Curre"t9y !et"a% "eeds a""ua99y aout 1///// to"s o? #aro" stee9 Be9d!"' rod to doF

A##ord!"' to MrF Ho Du# Tho Deuty D!re#tor o? Hoa Phat stee9 Jo!"t Sto#$ #o%a"y Bh!#h

!s $!"d se#!a9 stee9 h!'h te#h"!#a9 reu!re%e"ts art!#u9ar9y the #aro" #o"te"t %ust e 9ess

tha" /F/6 9ess tha" /FL5 Ma"'a"ese !s @ery du#t!9e !%ur!ty e9e%e"ts su#h as P S B!99

reu!re #o"te"t %ust e @ery s%a99F Stee9 Be9d!"' rod used as #ores ha@e SRY stee9 'rade 11

JIS Sta"dards G -5/- ,&//L stee9 'rade H/8A Ch!"a G;T -.&6 sta"dards auto%at!# Be9d!"'

B!re #ore stee9 'rade EM 1&K A%er!#a" sta"dard ASME SA AS A5F10 FFF The stee9 'rade


20/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY &/

#ate'or!es a"d sta"dards #a" @ary ut are !" ro99s LF/ %% P9a!" or 5F5 %% ^ a"d Be!'ht

reu!re%e"ts o? .// $' ro99 #o!9 ta"'9e tB!stF I" !et"a% a"d the Bor9d_s o"9y %a"u?a#turer o?

stee9 %!99s B!th 9ast ?ur"a#e te#h"o9o'y a"d tra!" "eB ?ur"a#e Bas 9oB" rodu#tsF Pre@!ous9y

Hoa Phat has a9so rodu#ed ?or the draB B!re #o!9 ?or eort to Austra9!a B!th #aro" #o%o"e"t

!s aro!%ate9y /F1&F Stee9 Be9d!"' rod %ore de%a"d!"' there?ore Hoa Phat Stee9 Jo!"t

Sto#$ Co%a"y ta$es t!%e to adust to te#h"o9o'y a"d ro#ure%e"t o? eu!%e"t at the sta'e o?

the stee9 a"d #ast!"' sta'es a##ord!"'9yF Curre"t9y the #o%a"y has ordered ded!#ated de@!#es

su#h as #o"tro9 syste%s !" @o!#e ?reue"#y ?ur"a#e s9a' 9oB!"' #ast!"' se#ret rote#t!o" syste%

a"t!o!da"t #ast!"' 9!"es %a'"et!# a'!tat!o" syste% to re%o@e !%ur!t!es #ast!"' 9!"es a"d!"#rease the ua9!ty o? #ast!"' !99etF It !s ee#ted that the Co%a"y B!99 %a"u?a#ture test

Be9d!"' rod stee9 rodu#ts %ade !" 9ate O#toer 0&/1LF

Pro"lems and Solution

/oreign competitors, especially C$inaF ro% a ?eB years "oB the stee9 !"dustry !s

#o"t!"uous9y ?a#ed B!th ressure ?ro% #hea stee9 !%orts ese#!a99y ?ro% Ch!"aF

A##ord!"' to ?!'ures ?ro% the Ge"era9 Deart%e"t o? #usto%s !" &/15 !et"a% has

!%orted 15F0 %!99!o" to"s o? stee9-- !"#rease !" @o9u%e #o%ared to the year &/1.F I" !t

stee9 !%orted ?ro% Ch!"a !s 6FL %!99!o" to"s a" !"#rease o? 5. a"d a##ou"ted ?or L1F- o? the

tota9 rodu#t!o" o? !%orted 'oodsF Co%ared to the year &/1& the a%ou"t o? stee9 a"d 9o"'

stee9 !%ort @o9u%e !" &/15 has !"#reased %ore tha" - t!%esF I" the #o"tet o? a 9ar'er su9y

ressure ?ro% !%orted stee9 has ushed the r!#e o? the rodu#t 'oes doB" a"d stee9 e"terr!ses

are ho9es e@e" as 9osses ?or %a"y years !? u!te o@er B!th !"terest ut @ery 9oBF HoBe@er

9aya#$ !s st!99 'roB!"' oth re@e"ue a"d ro?!t are @ery sta9e Borthy o? $ee!"' the NoF 1 !"

the !"dustryF I" &/15 rea#hed %ore tha" &0/// Hoa Phat !99!o" re@e"uer!s!"' a9%ost 6


21/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY &1

#o%ared to the year &/1. o? Bh!#h &&/// #o"tr!ut!o" "at!o"a9 stee9 9ateF Pro?!t a?ter ta

rea#hed -5/. !99!o" u "ear9y 8 a"d 0F8 #o%ared to the adusted 9a"F

Th!s tur"o@er rate droed tBo !' us!"ess !s the !et"a% Stee9 Cororat!o" ,"Stee9

TN a"d Hoa Se" Grou ,HSGF Aout ro?!t the" the d!sta"#e etBee" the road#ast!"'

us!"ess B!th the Reu9!# rest a9so a 9ot h!'herF

A##ord!"' to the e@a9uat!o" o? the eert a"a9ys!s ad@a"ta'es o? s#a9e !s the $ey to

so9@!"' d!??!#u9t Hoa Phat ass to other us!"esses a"d a##ou"ts ?or && o? the %ar$et share o?

the Bho9e !"dustryF

!rst o?? us!"' the te#h"o9o'y o? h!'h ?ur"a#e draB P9ay to ta$e ad@a"ta'e o? the !"ut

raB %ater!a9 r!#es r!s!"' Be99 o@er the us!"ess us!"' e9e#tr!#ar# te#h"o9o'yF Thus !" &/15

Bhe" the r!#e o? !ro" ore a"d Co$e ,& %a!" !"'red!e"ts o? HPG 9u%%eted %ore tha" the s#ra

stee9 a"d e9e#tr!#!ty ,!"uts o? the other IRMS Hoa Phat has e"e?!#!a9 tha" aout the

rodu#t!o" #ostsF


22/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY &&

;es!des the stro"' ha"ds a!d #o%%er#!a9 d!s#ou"t use sa9es eased o9!#y %a$!"' h!s

sa9es #osts !"#reased ut th!s !s a9so Borthy o? the e??!#!e"#y 'a!": re@e"ue 'roBth %a!"ta!"

%ar$et shareF

I" 9ate &/15 !99et !%ort tar!?? o? o"9y 6F The de#!s!o" o? the M!"!stry o? !"dustry a"d

trade "eB ta rate o? &-F- a9!ed ?or a"d 1.F& ;!99ets ?or 9o"' stee9F I" add!t!o" the

!%orted !te%s a9y sa?e'uard %easures O??!#!a9 !"#ur add!t!o"a9 !%ort tar!??s ,taes a"d se9?

de?e"seF Thus !%ort dut!es o" Ch!"a stee9 !"'ot to --F- a"d &6F& 9e@e9 o? 9o"'sF Th!s

de#!s!o" B!99 9!%!t Ch!"ese stee9 !%orts !"to !et"a%F Thus as a se9?su??!#!e"t e"terr!se !99et

Hoa Phat B!99 ha@e tBo ad@a"ta'esF O"e !s to redu#e #o%et!t!o" ?ro% !%orted stee9 su#h

et!t!o"s Bh!#h the Grou has su%!tted to the Pr!%e M!"!sterF TBo Bhe" restr!#t!o"s are #hea

su9y ?ro% aroad do%est!# stee9 r!#e !"#reases a"d Hoa Phat Bh!#h !s "oB su9!ed stee9

?or %a"y o? the% se9?#o"tro9 "ot e%ryo"!# B!99 e a9e to !"#rease oth se99!"' r!#es a"d

sa9es @o9u%eF !th these ad@a"ta'es the #o%et!t!@e"ess o? Hoa Phat h!'her tha"

eersF Sea$!"' as ]t!'er srouted B!"'s] !s "ot Bro"' thou'h t!'er !s st!99 ?a#!"' %a"y

d!??!#u9t!esF

%ntrant into corrugated iron market+Hoa Phat Grou has ust de#!ded to !"@est the

roe#t #o9or #oated rodu#t!o" 9a"t !" Hoa Phat at the INDUSTRIA2 PARK !" Hu"' ye" B!th

a #aa#!ty o? .///// to"syear !" order to ser@e the %ar$et de%a"d !s 'roB!"' stro"'er a"d

au!9!ary %ater!a9 sour#e ?or #oated stee9 !e ?a#tory !" Hu"' ye"F HoBe@er there !s o"e

us!"ess t!ta" !" th!s %ar$et that Hoa Phat has to #o%ete Hoa Se" 'rouF The !''est ro9e%

Hoa Phat !s ?a#!"' "oB !s hoB to 'a!" %ar$et share Bh!9e Hoa Se" a9%ost ru9e th!s %ar$etF e

th!"$ !" th!s s!tuat!o" Hoa Phat shou9d ta$e ad@a"ta'e o? ete"s!@e stee9 d!str!ut!o" syste% to

%ar$et e"etrat!o"F A##ord!"' to 9eaders o? the HPG PPGI ?a#tory Hoa Phat u!9t B!th the a!%


23/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY &-

o? e"etrat!"' the %ar$et #o9d 'a9@a"!ed stee9 sheet 'a9@a"!ed ea"ded "eB rodu#t!o"

se#torsF The 9a"t B!99 use ad@a"#ed te#h"o9o'y s#rat#hy Ita9y Jaa" Ger%a"yF The e"t!re

syste% o? Hoa Phat Stee9 P!e so9d us!"ess are PPGI rodu#ts thus outut as o" @ery ?a@ora9eF

As sa!d !" Ca?e?F@" Most o? the ?a#tor!es are 9o#ated !" the souther" re'!o" su#h as rese#t

2otus ?a#tory !" ;!"h Duo"' a"d Phu My !et"a% a#tory K!% a"d re9!'!ous r!"#!9es are

ased !" the East As!a Pa#!?!# !" add!t!o" to other ?a#tor!es as TP TC To" Phuo# Kha"h FFF

are 9o#ated !" the southF I" the "orth there !s "oB ust the N Stee9 9a"t Tha"' 2o"' the o"9y

rodu#er o? the doB"strea% rodu#t !s #o9d a"d a!"ted 'a9@a"!ed stee9 sheet B!th a #aa#!ty o?

5//// to"s year so #o9dro99ed %ater!a9 %ust st!99 uy South tra"s?er so a"other so9ut!o" ?orHoa Phat #a" e e"etrat!"' 'a9@a"!ed %ar$et !" the North e#ause su9y !s st!99 9oB !" th!s

re'!o" Bh!9e the 'a9@a"!ed stee9 9a"ts are a99o#ated %ost !" the souther"F Proe#t PPGI

rodu#t!o" o? Hoa Phat B!99 #o%e"sate ?or the shorta'e rodu#t %ar$ets !" the area ese#!a99y

!" the %!dra"'e a"d h!'he"d se'%e"tsF

Input and supplier+ A##ord!"' to Hoa Phat Grou Jo!"t Sto#$ Co%a"y ee#ted !"

&/1L Hoa Phat B!99 !%ort @o9u%e o? arou"d 1FL %!99!o" to"s o? !ro" ore !" &/10 a"d #ou9d r!se

to - %!99!o" to"s !? the !ro" %!"e Tha#h Khe has yet to e ut !"to oerat!o"F Ore B!99 r!%ar!9y

e"ter the #ou"try ?ro% South A?r!#a Austra9!a ;ra!9 U$ra!"e I"d!aF Th!s %!'ht see% to e a"

ad@a"ta'e !" the short ru" e#ause %a"y eerts ha@e red!#ted the Bor9d !ro" ore r!#es B!99

$ee ?a99!"' dee9y !" 9ate &/1L a"d ear9y &/10 due to %a"y roe#ts o? 9ar'es#a9e !ro" %!"e !"

the Bor9d to 'o !"to rodu#t!o" #aus!"' e#ess su9y !ro" ore at 9east u"t!9 e"d &/&/F Co%ared

B!th #o%a"!es that use e9e#tro"!# or u"$ stee9 as !"ut Hoa Phat !s o@!ous9y 9ead!"' o" 9oB

#ostF HoBe@er !" the 9o"' ru" dee"d!"' o" the r!#e o? !%orted !"ut #a" #ause #o"s!dera9e


24/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY &.

osta#9es ?or Hoa PhatF I" #ase o? !t Hoa Phat shou9d !"@est %ore !" de@e9o!"' te#h"o9o'y to

%a"!u9ate !ts oB" !"ut a"d #a" ta$e ad@a"ta'e o? au"da"t %!"era9 resour#es o? !et"a%F

Steel sla" self8production+ Th!s !s "ot ea#t9y a" osta#9e ut rather a" ad@a"ta'e ?or

Hoa PhatF h!9e other #o%a"!es ha@e to !%ort s9a !" order to e a9e 9a%!"ate stee9 a"d ?!"!sh

?!"a9 rodu#t !" the rodu#t!o" 9!"e Hoa Phat %a"u?a#tures u"der a #9osed ro#essF Not o"9y

that Hoa Phat !s a !' s9a d!str!utor ?or !ts #o%et!torsF Thus Hoa Phat as a @ert!#a9 !"te'rated

?!r% #a" a9y strate'y 9!$e @ert!#a9 ?ore#9osure or r!#e#ost sueee to #o%ete B!th others

that use stee9 s9a as !"utF I" the s!tuat!o" Bhere the r!#e o? !%orted s9a !s !"#reas!"' due to

the sa?e'uard ta Hoa Phat #a" de?!"!te9y !"#rease #o%et!tors #ost y !"#reas!"' the #ost o?stee9 s9aF Thesa!'o"t!%es #9a!%s that !? the ta rate !"#reases !99et !%orts !"to !et"a% u .5

,!" &/15 th!s ta !s 6 the do%est!# stee9 r!#es B!99 !"#rease y the #o%a"y a"d the %aor!ty

o? do%est!# stee9 rodu#t!o" !"#reas!"'9y ?a99 !"to the su dee"d!"' o" o"e or se@era9 su9!ers

to the do%est!# stee9 !99etF Thus !"@!s!9e !%os!t!o" o? sa?e'uard o9!#!es e"e?!t o"9y a ?eB

]'!a"ts] !' stee9 !99et su9y #o"tro99!"' the %aor!ty o? raB %ater!a9s !" stee9 rodu#t!o"

e"terr!ses re%a!"!"' e%ryos !%ort dee"de"#e B!99 urde" add!t!o"a9 #osts !"#reased

rodu#t #osts the oss!!9!ty o? 9oss due to the r!#e redu#t!o" !" #o%et!t!o"F

&griculture

Overview of t$e Industry

Re'ard!"' a"!%a9 ?eed %ar$et !t !s 'roB!"' !%ress!@e9y at a dou9ed!'!t rateF A9thou'h

the ro?!t rat!o !s "ot @ery h!'h th!s %ar$et has 9ar'e s#a9e a"d !s @ery ote"t!a9F A"!%a9 ?eed !s

the %ost ro?!ta9e se'%e"t !" a'r!#u9ture Bh!#h !s the reaso" Bhy there are a s!'"!?!#a"t

"u%er o? !et"a%ese 9ar'e #o%a"!es !"@est!"' !" th!s %ar$et su#h as Masa" Hu"' uo"'

et#F HoBe@er e#ause o? the ro?!ta!9!ty th!s %ar$et !s h!'h9y #o%et!t!@eF As Mar#h &/15 56


25/42


?ore!'"!"@ested ?!r%s a"d o!"t @e"tures do%!"ate ha9? o? the %ar$et Bh!9e 18/ do%est!# ?!r%s

share &/ er#e"t %ar$et share B!th the re%a!"der a##ou"ted ?or y !%orted rodu#ts ,2a"

Nh!The Sa!'o"t!%esF So%e do%!"a"t #o%a"!es !" the se#tor !"#9ude CP Grou Car'!99 NeB

Hoe a"d Gree"eed B!th the a""ua9 '9oa9 re@e"ue o? hu"dreds o? !99!o" USDF

Aout 9!@esto#$ %ar$et the r!#e !s ?reue"t9y a??e#ted y "e'at!@e !"?or%at!o" su#h as

d!sease us!"' roh!!ted susta"#es ,9!$e Sa9uta%o9 #aus!"' the a"!ety a%o"' #o"su%ersF

Th!s %ar$et !s a9so @u9"era9e a"d a??e#ted y the ur#hase o? other #ou"tr!es ese#!a99y Ch!"aF

or ea%9e at the e'!""!"' o? May &/1L the r!#e o? or$ !" southeast !et"a% rea#hed the

h!'hest o!"t B!th!" 16 %o"ths e#ause o? the sur'e !" uy!"' o? Ch!"aF HoBe@er at the %!dd9e

o? th!s %o"th Ch!"a sudde"9y stoed the !%ortat!o" throu'h u"o??!#!a9 #ha""e9 Bh!#h 9ed to

the de#rease !" the or$ r!#e ,Cha""uo!@!et"a%F urther%ore ?ore!'"!"@ested #o%a"!es a9so

has a do%!"a"t os!t!o" !" 9!@esto#$ %ar$et 9!$e CP se99 aout 15//// sB!"es o" a@era'e er

day a"d a9%ost do%!"ates the !et"a%ese %eat %ar$et @a9u!"' 18 !99!o" USD ,N'uye" ;ao Q

Ha! Au Doa"h"ha"sa!'o"F

Hoa P$at Operation

I" Mar#h &/15 Hoa Phat o??!#!a99y started !"@est%e"t !" the a'r!#u9tura9 se#tor y

esta9!sh!"' Hoa Phat A"!%a9 eed Trad!"' a"d Produ#t!o" Co%a"y O"e Me%er CoF 2tdF a"d

%a"y %e%er e"t!t!es ha@e ee" esta9!shed a"d e'u" oerat!"' !" a"!%a9 ?eed a"d 9!@esto#$

ra!s!"' s!"#e the"F Hoa Phat Trad!"' CoF 2tdF Bh!#h re@!ous9y se#!a9!ed !" trad!"' stee9

rodu#ts Bas restru#tured a"d sh!?ted to resear#h a"d !%9e%e"tat!o" o? h!'hte#h #oB ra!s!"'

roe#ts !" 9ate &/15F Hoa Phat M!"!"' JSC Bh!#h re@!ous9y se#!a9!ed !" e9o!t!"' a"d

ro#ess!"' !ro" ore Bas a9so restru#tured to u"derta$e !osa?e !' ra!s!"' roe#tsF


26/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY &L

!th a strate'y o? syste%at!# a"d ro?ess!o"a9 #a!ta9 %a"a'e%e"t a"d !"@est%e"t the

'rou esta9!shed Hoa Phat A'r!#u9ture De@e9o%e"t JSC B!th a #harter #a!ta9 o? ND&5//

!99!o"F Th!s !s a ho9d!"' #o%a"y that 'o@er"s a"d %a"a'es us!"ess a"d !"@est%e"t roe#ts o?

%e%er e"t!t!es !" the a'r!#u9tura9 se'%e"tF I" the !%%ed!ate ?uture Hoa Phat B!99 ?o#us o"

a"!%a9 ?eed rodu#t!o" a"d trad!"' a"d 9!@esto#$ ra!s!"'F I" the 9o"' ter% Hoa Phat B!99

#o"s!der ?or%u9at!"' a @a9ue #ha!" !" the a'r!#u9tura9 se#tor ?ro% rodu#t!o" to ?ood d!str!ut!o"F

or the a"!%a9 ?eed rodu#t 9!"e Hoa Phat !s a##e9erat!"' the ro'ress o? !ts ?!rst

rodu#t!o" ?a#tor!es !" Hu"' Ye" a"d Do"' Na! ro@!"#esF The ?!rst ?a#tory !" hu"' Ye" !s

ee#ted to e ut !"to oerat!o" ear9y !" Vuarter & o? &/1L the se#o"d a"!%a9 ?eed ?a#tory !"

Do"' Na! !s ee#ted to e #o%9eted !" Vuarter . o? &/1LF A?ter #o%9et!o" the %a!%u%

#aa#!ty o? oth ?a#tor!es %ay rea#h a tota9 o? L///// to"s er yearF As 9a""ed these ?a#tor!es

B!99 start tr!a9 oerat!o" o? rodu#t!o" 9!"es to test the!r #aa#!ty a"d a9!'" the!r outut B!th

%ar$et de%a"d !" the Norther" ro@!"#es !" the !%%ed!ate ?utureF I" &/10 Hoa Phat has ?urther

9a"s to #o"stru#t !ts th!rd a"!%a9 ?eed ?a#tory to rea#h a" a"!%a9 ?eed tar'et o? 1 %!99!o" to"sF

or the 9!@esto#$ ra!s!"' se'%e"t Hoa Phat !s #urre"t9y #o"s!der!"' !%9e%e"t!"' 9ar'e

s#a9e !' a"d #oB ra!s!"' roe#ts !" %a"y ro@!"#es a#ross the #ou"try su#h as 2a"' So" ;a#

G!a"' Ye" ;a! Hoa ;!"h Vua"' !"h Phu Tho Hu"' Ye" Tha! ;!"h Do"' Na! a"d Da$ 2a$F

,Hoa Phats &/15 a""ua9 reort

Curre"t9y Hoa Phat !%orted 5// reed!"' sto#$s ,GPP ?ro% De"%ar$ a"d 9a""ed to

su9y or$ ?ro% &/18


27/42


It #a" e see" ?ro% the 9a" o? Hoa Phat that th!s Grou !"te"d to u!9d a ?u99 #!r#9e

rodu#t!o" ro#ess - %ode9 ,eed ar% ood the %ode9 that 9ar'e #o%a"!es 9!$e CP

Car'!99 a9!edF


28/42


HoBe@er the resu9t at the e'!""!"' !s "ot @ery os!t!@eF I" uarter 1 &/1L a'r!#u9ture

se#tor eer!e"#ed a 9oss o? 1. !99!o" NDF

ProftRevenue

Revenue and proft o agriculture sector

Unit: billion VND

Quarter 1/Quarter !/Quarter #/Quarter 2/Quarter 1/


29/42


Pro"lem and Solution

Hoa Phat !s a "eB e"tra"t !" a'r!#u9ture Bh!#h !s do%!"ated y @ery 9ar'e #o%a"!es

B!th stro"' ?!"a"#!a9 os!t!o" a"d 9o"' h!story !" the %ar$etF Hoa Phat %ay ?a#e %a"y

#ha99e"'es Bhe" e"etrat!"' !" th!s %ar$etF O" the other ha"d th!s "eB se#tor a9so has so%e

s!%!9ar!ty B!th the trad!t!o" !"dustry o? Hoa Phat su#h as 9ar'e s#a9e rodu#t!o" a"d outut

dee"d!"' o" %a"y 9o#a9 ?a#torsF

/inancial pro"lem+De@e9o!"' the - %ode9 reu!res a 9ot o? #a!ta9 at the e'!""!"'F

I" order to 'a!" s!'"!?!#a"t %ar$et share Hoa Phat "eeds to u!9d aout 0 to 8 ?a#tory Bh!#h !s

est!%ated to #ost aout &/// to &5// !99!o" ND ,!et N'uye" "h!#audautuF Hoa Phat has a

stro"' ?!"a"#!a9 os!t!o" a"d the #o"'9o%erate us!"ess ?or% #a" a99oB the Grou to use ro?!t

!" the #ore us!"ess ,eF' stee9 to suort th!s "eB se'%e"tF Ne@erthe9ess the Grou %ay ha@e to

orroB %o"ey ?ro% a"$ or other #ha""e9s to ?!"a"#e "eB roe#tsF Th!s s!tuat!o" %ay deter the

#o%et!t!@e #o%ete"#y o? the Grou s!"#e a##ord!"' to CCI the rea9 !"terest rate !" !et"a%

!s st!99 h!'h ,08year #o%ared to other #ou"tr!es !" ASEAN 9!$e The Ph!9!!"es,&F&year or Ma9ays!a ,&F1year ,Thuy 2!"h P2OF Moreo@er !" !et"a% ?ore!'"!"@ested

e"terr!ses are 'ra"ted ro%ot!o"s !" ter%s o? #ororate !"#o%e taes tar!??s et#F

To address th!s ro9e% the Grou shou9d %a$e use o? !ts #urre"t #a!ta9 a"d ha@e

rude"t de#!s!o" !" ?!"a"#!"' roe#ts to $ee the det rat!o at the sa?e 9e@e9 9!$e the #urre"t o"e

,/F0LF It !s @ery tou'h at the e'!""!"'F HoBe@er o"#e the - %ode9 #a" oerate ?u99y !t #a"

he9 to susta"t!a99y redu#e the #ost y!e9d %ore ro?!t Bh!#h !" tur"s B!99 de#rease the ressure

o" #a!ta9 a"d the Grous 9!a!9!ty !" the ?o99oB!"' er!odsF


30/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY -/

6istri"ution c$annel+or a"!%a9 ?eed Hoa Phat "eeds 9ar'e a"d ete"s!@e d!str!ut!o"

"etBor$s 9!$e e!st!"' ?!r%sF or ea%9e !" &/15 CP #ooerated B!th ?ar%ers to u!9d o@er

-/// s%a99 ?ar%s a"d ?ood ?a#tor!es a99 o@er the #ou"tryF As a resu9t the re@e"ue o? CFP

Po$ha"d CoF2td !" &/15 !"#rease 1F1 !" #o%ar!so" B!th that !" &/1.F Moreo@er DI

e"terr!ses st!99 Ba"t to !"#rease the!r d!str!ut!o" "etBor$sF CP has a9ready 9a""ed to de@e9o

aout 1//// dea9ers throu'h ?ra"#h!s!"' a"d the reta!9 #ha!" Se@e" E9e@e" ,!et N'uye"

"h!#audautuF

It see%s to e @ery #ha99e"'ed to Hoa PhatF To so9@e the d!str!ut!o" #ha""e9 ro9e%

Hoa Phat Grou %ay ut!9!e the e!st!"' B!desread d!str!ut!o" "etBor$ ?or stee9 to d!str!ute

a"!%a9 ?eed a"d or$F No"ethe9ess !" the 9o"'ru" !t !s esse"t!a9 to ha@e to the ro?ess!o"a9

#ha""e9 ?or a'r!#u9ture rodu#t e#ause u"9!$e stee9 the #ha""e9 ?or th!s rodu#t %ust e #9oser

to ?ar%ers !" ea#h @!99a'e !" the #ou"trys!deF To do that Hoa Phat #a" 9ear" ?ro% the strate'y o?

e!st!"' #o%et!torsF That !s to #ooerate B!th ?ar%ers the #o"su%ers to he9 the% B!th

te#h"!ues !" ?eed!"' a"d use ad@ert!s!"' a"d other #a%a!'"s to d!??ere"t!ate Hoa Phats

rodu#tsF I" add!t!o" to !"#rease the #o@era'e o? the "etBor$ Hoa Phat shou9d dea9 B!th 9o#a9

d!str!utor a"d dea9ers to d!str!ute the!r rodu#tF Hoa Phat !s a !et"a%ese ?!r% so !t shou9d

ta$e the ad@a"ta'e o? the u"dersta"d!"' aout !et"a%ese dea9ers Bhe" dea9!"' B!th the%F

Input+ A"other #ha99e"'e ?or Hoa Phat !s the !%ort %ater!a9 9!$e rote!" a"d other

"utr!e"ts to rodu#e a"!%a9 ?eed s!"#e the do%est!# su9y !s ?9u#tuated a"d "ot e"ou'hF Th!s

%a$e the oerat!o" o? the #o%a"y dee"ds o" the ?ore!'" su9!er a"d !s a??e#ted y the

e#ha"'e rate other ?a#tors !" the Bor9d %ar$et tar!??s tra"sortat!o" #ostF There?ore Hoa Phat

shou9d ha@e %ore su9!ers to redu#e the r!s$ o? dee"de"#y as Be99 as e"ter !"to ?!r% #o"tra#t

B!th su9!ers to e"sure the su9y a"d r!#e o? !"ut to %a!"ta!" the r!#e o? the rodu#tF I" the


31/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY -1

9o"'ru" Hoa Phat shou9d th!"$ aout us!"' do%est!# su9!er y #o"tra#t B!th ?ar%er a"d

tea#h!"' the% hoB to rodu#e %ater!a9 9!$e %a!e soyea"s !" a##orda"#e B!th sta"dardsF Th!s

strate'y #a" he9 Hoa Phat to redu#e the #ost a"d ?a#!9!tate do%est!# rodu#t!o"F


32/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY -&

9!"e ?or re?r!'erat!o" e9e#tr!# househo9d rodu#ts ?or ea%9e: re?r!'erator a!r #o"d!t!o"er

Bash!"' %a#h!"e e"a%e9ed e9e#tr!# Bater heater u"der u"!$! ra"dF Those %e"t!o"ed ao@e

rodu#ts are rodu#ed y %oder" te#h"o9o'y 9!"e B!th #ooerat!o" o? the 9ead!"' 'rous !" the

Bor9d to rodu#e h!'h ua9!ty a"d sta9e rodu#tF The rodu#ts o? Hoa Phat Re?r!'erat!o"

E"'!"eer!"' Co%a"y ha@e a#h!e@ed re%ar$a9e os!t!o" o" 9o#a9 %ar$et share #o%are B!th

other ?a%ous ra"dsF

Ma!" rodu#ts:

A!r #o"d!t!o"er B!th #aa#!ty ra"'e 6///;TU 1&///;TU 18///;TU &.///;TU

9oor tye a!r #o"d!t!o"er B!th #aa#!ty ra"'e &.///;TU &0///;TU .5///;TU .8///

L////;TU

Ce!9!"' #assette a!r #o"d!t!o"er #aa#!ty &.F///;TU &0F///;TU .5F///;TU .8F///;TU

I"te99!'e"t syste% R R

D!re#t a"d !"d!re#t #oo9!"' re?r!'erator #aa#!ty ra"'e ?ro% 5/ 2 to &&/ 2

reeer B!th 1 #ha%er a"d & #ha%er #aa#!ty ?ro% &/0 to .&52

E"a%e9ed Bater heater B!th a"t!a#ter!a9 S!9@er Na"o te#h"o9o'y a"d T!ta"!u% e"a%e9ed ta"$

#aa#!t!es 152 &/2 &52 -/2 5/2F

Re?r!'erator a#tory Hoa Phat Re?r!'erat!o" Co%a"y has #o%9eted the !"sta99at!o"

a"d oerated the "eB ?reeer rodu#t!o" #ha!" at the e'!""!"' o? the 2u"ar year &/1/ ra!s!"'

#aa#!ty o? ?a#tory u to 0// rodu#ts dayF

Th!s #ha!" !s ?u99y auto%at!# us!"' %oder" #o"tro9 eu!%e"t a"d 'ood ua9!ty o? the

ra"ds !" the Bor9d su#h as S!e%e" M!tsu!sh! O%ro" ` There?ore the ?reeer u"!$! !s


33/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY --

a9Bays 'uara"teed B!th h!'h a##ura#y a@o!d errors o? rodu#t sur?a#e e"sur!"' su9y t!%e9y

a"d e"ou'h ?or the %ar$etF The #ha!" Bas des!'"ed a"d !"sta99ed y 9ead!"' eerts !" the ?!e9d

o? auto%at!o"F Caa#!ty o? the "eB 9!"e rea#hes &// rodu#tssh!?t8hours ra!s!"' #aa#!ty o? the

?a#tory to 0// rodu#ts er dayF

The !"sta99at!o" o? "eB #ha!" #o"tr!utes to !%ro@!"' rodu#t ua9!ty a"d %ore sta9e

oerat!o" o? the a#tory Bh!9e !"#reas!"' rodu#t!o" outut to %eet the 'roB!"' "eed o?

#usto%ers "at!o"B!deF The #ha!" o??!#!a99y ru"s o" eruary 16th &/1/ ,Ja"uary Lth o? 2u"ar

YearF Th!s B!99 e a 'ood start oe"!"' ?or the "eB su##esses o? Hoa Phat Re?r!'erat!o"

#o%a"y !" &/1/F

/urniture

Hoa Phat ur"!ture Jo!"t Sto#$ Co%a"y %a"u?a#tures a"d %ar$ets ?ur"!ture !" !et"a%F

The #o%a"y Bas ?ou"ded !" 1665 a"d !s ased !" Ha No! C!ty !et"a%F Hoa Phat ur"!ture

Jo!"t Sto#$ Co%a"y oerates as a sus!d!ary o? Hoa Phat Grou Jo!"t sto#$ Co%a"yF The

%oder" te#h"o9o'y a"d eu!%e"t @ar!ety $!"ds o? rodu#t the sread!"' "etBor$ o?

d!str!utors are Hoa Phats ad@a"ta'es to a??!r% the 9ead!"' ra"d o? !et"a%ese ?ur"!ture

!"dustryF

Ma!" rodu#ts:

oode" o??!#e ta9e a"d #a!"et

Stee9 o??!#e ta9e a"d #a!"et

Co%uter ta9e

O??!#e #ha!r


34/42

CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY -.

!re res!sta"t sa?e o

Sa?e a"d Se#ur!ty o

So9!d Bood or Stee9 #ha!r a"d ta9e

So9!d Bood or Stee9 househo9d

S#hoo9 ?ur"!ture ?ro% $!"der'arte" to u"!@ers!ty 9!rary roo% 9a oard!"' s#hoo9`

ur"!ture ?or u9!# 9a#e: 9ou"'e #ha!rs at a!r tra!" us stat!o" ost o??!#e theater #ha!rs

%eet!"' #ha!rs stad!u% #ha!r hos!ta9 ?ur"!ture`

Construction = >ining >ac$inery

ou"ded !" Au'ust 166& Hoa Phat Eu!%e"t Q A##essor!es CoF 2td the ?!rst

%e%er o? Hoa Phat Grou se#!a9!es !" %a"u?a#tur!"' a"d trad!"' #o"stru#t!o" eu!%e"ts

a"d %!"!"' %a#h!"es a"d !s o"e o? 9ead!"' %a"u?a#turers o? eu!%e"ts !" #o"stru#t!o" ?!e9d:

S#a??o9d!"'s #o%!"at!o" suort ,e9e#trostat!# srayed a!"ted a"d 'a9@a"!edF

Stee9 ?or%Bor$ a"d stee9 ?ra%e ?or%Bor$ B!th 9yBood 9ateF

Co"stru#t!o" ho!stF

Mast 9!?t!"'F

ToBer #ra"e ,Hoa Phat !s the o"9y %a"u?a#turer !" !et"a%F

Co"#rete %!!"' 9a"tF

Co"#rete %!erF

Sto"e ore a"d sa"d #rushersF

Cast rodu#ts su#h as #rush!"' 9!"ers a"d #o%o"e"ts ?or rodu#!"' #rusher s#ree" ore

e9o!t!"' %a#h!"es


35/42


Hoa Phat !s "oB the so9e d!str!utor !" !et"a% ?or the ?o99oB!"' rodu#ts:

MIKASA ra"d #o"stru#t!o" eu!%e"ts %ade !" Jaa"F Hoa Phat !s so9e d!str!utor !"

!et"a%F

JIN2ONG ra"d #o"#rete @!rator a"d 9ate #o%a#torMADE IN CHINA F

AIRMAN a"d IAC ra"d a!r #o%ressor Q 'e"erator %ade !" Jaa" a"d Ita9y

rese#t!@e9y

OMI ra"d a!r dryer a" eu!%e"t ?or !"dustr!a9 a!r treat%e"t %ade !" Ita9yF

KOSHIN ra"d Bater u% a"d 'e"erator %ade !" Jaa"

PRAMAC ra"d 'e"erator %ade !" Ita9y TSURUMI ra"d 'e"erator %ade !" Jaa"F

!9% ?a#ed 9yBood ?or %a$!"' ?or%Bor$ ?ro% Ch!"aF

Produ#ts see" as the #o%a"y r!de !s toBer #ra"e a"d #rusherF Hoa Phat !s the !o"eer

!" tra"s?or%!"' the rodu#ts !"to !et"a%ese rodu#tsF The ?!rst t!%e !" !et"a% there are

%e#ha"!#a9 rodu#ts o? h!'h te#h"o9o'y rodu#ed 9o#a99y B!th h!'h rate o? !"ter"a9!at!o"

%a$!"' reutat!o" "ot o"9y !" !et"a% ut a9so !" re'!o"a9 #ou"tr!esF

Produ#ts %ade y Hoa Phat are a99 rodu#ed ?ro% %oder" te#h"o9o'!#a9 rodu#t!o"

9!"es a"d se@ere9y tested !" ter% o? ua9!tyF The #o%a"y Bas re#o'"!ed y TUNORD

or'a"!at!o" Ger%a"y a"d ;SI or'a"!at!o" ;r!ta!" ?or !ts ua9!ty %a"a'e%e"t syste% ISO

6//1:&/// a"d ISO 6//1: &//8 rese#t!@e9yF

The rodu#ts ha@e ee" su9y!"' a"d !"sta99!"' !" %a"y !' #o"stru#t!o" roe#ts a99o@er the #ou"try a"d eort!"' to su#h #ou"tr!es as 2aos Ca%od!a Russ!a U$ra!"e a"d

Sr!9a"$a the Ph!9!!"esF


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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY -L

!th &/ years o? eer!e"#e !" %a"u?a#tur!"' a"d trad!"' #o"stru#t!o" eu!%e"ts the

#o%a"y oB"s a tea% o? h!'h s$!99ed a"d eer!e"#ed te#h"!#!a"s !" o??er!"' #o"su9ta"#y

!"sta99at!o" %a!"te"a"#e !%%ed!ate9y %eet!"' e@ery de%a"d o? #usto%ersF A "etBor$ o?

dea9ers a"d ra"#hes s#atter!"' ?ro% the North to the South to'ether B!th a@a!9a!9!ty o? sare

arts Hoa Phat !s @ery roud to e a SUPP2IER B!th the #o"t!"uous 9o"' ter% a"d

rest!'!ous ser@!#e a?ter sa9e !" !et"a%F

Real %state 6evelopment

Hoa Phat o??!#!a99y o!"ed the rea9 estate %ar$et !" &//1 se#!a9!!"' !" the ?!e9d o?

!"dustr!a9 a"d #!@!9 #o"stru#t!o"F HPG has o"e a#t!@e res!de"t!a9 rea9 estate roe#t !" Ha"o!F Its

Ma"dar!" Garde" de@e9o%e"t o? ?our #o"do%!"!u% 9o#$s !s "ear9y #o%9eted a"d 6/ o?

the u"!ts ha@e ee" so9dF HPG re@!ous9y 9a""ed to de@e9o %ore res!de"t!a9 rea9 estate

roe#ts ut aa"do"ed those 9a"s ?o99oB!"' the de?9at!o" o? !et"a%s rea9 estate u9eF

H!'h#9ass o??!#e aart%e"t a"d #o%%er#!a9 #e"tre #o%!"at!o" roe#t at &50 G!a!

Pho"' road Do"' Da d!str!#t Ha"o!

Ma"dar!" Garde" aart%e"t #o%!"at!o" roe#t !" South East Tra" Duy Hu"' road Cau

G!ay d!str!#t Ha"o!F It !s a #o%9ete h!'h9!'ht B!th a os!t!o" that #a" "ot e %ore eaut!?u9 !"

the Best o? Ha"o!F

The o??!#e aart%e"t a"d #o%%er#!a9 #o%!"at!o" roe#t at .6- Truo"' D!"h road

Hoa"' Ma! d!str!#t Ha"o!F


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Hoa Phats strate'y !s e"sur!"' the ro'ress #o%%!tted to the #usto%ersF Th!s eresses

the Grous e#o"o%!# ote"t!a9 a"d s!%u9ta"eous9y u!9ds trust a"d #reate e??!#!e"#y ?or e@ery

roe#t !"@ested y Hoa PhatF

2o#ated !" Hu"' Ye" Pho No! A I"dustr!a9 Par$ B!th the s#a9e o? L// ha !s o"e o? the

9ar'est !"dustr!a9 o"es !" !et"a%F Ha@!"' a ?a@ora9e os!t!o" a"d %oder" !"?rastru#ture !t !s

the !dea9 dest!"at!o" o? oth do%est!# a"d ?ore!'" !"@estorsF

Add!t!o"a99y Hoa Phat !s a9so the !"@estor o? Hoa Ma# I"dustr!a9 Par$ B!th the s#a9e o?

&// ha !" Ha Na% ro@!"#eF


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Re?ere"#es

Hoa Phat GrouF Grous A""ua9 Reort &/15F Retr!e@ed ?ro%

htt:BBBFhoahatF#o%F@"e"#ate'ory!"@estorre9at!o"se"a""ua9reorts

Tu 2!"hF =HC= T Zo4" Hba Phct: 2! "hu" sau thu uf 1&/1L $hog"' 6// tFCa?e?F

Retr!@ed ?ro% htt:#a?e?F@"doa"h"'h!edh#dtadoa"hoahat9o!"hua"sau

thueuy1&/1L$hoa"'6//ty&/1L/--1/6-6/L/8-F#h"

Cha""uo!@!et"a%F Retr!e@ed ?ro% htt:#ha""uo!@!et"a%F#o%&5-0.

2a" Nh!F T= Hba Phct Ziu t* #huj! "h4 %cy thk# l" #hl" "um!F Thesa!'o"t!%esF Retr!e@ed

?ro% htt:BBBFthesa!'o"t!%esF@"1&0-LLTDHoaPhatdautu#huo!"ha%aythu#

a"#ha""uo!Fht%9

N'uye" ;ao Q Ha! AuF Th7 tr*n"' thk# l" #hl" "um!: Cu# Zua -F Doa"h"ha"sa!'o"F

Retr!e@ed ?ro% htt:BBBFdoa"h"ha"sa!'o"F@"#huye"9a%a"th!truo"'thu#a"

#ha""uo!#uo#dua-?1/6L&.-

N'uye" =!"h ;!#hF Th7 tr*n"' Tru"' Vup#: @q" Z "' #ho th7t heo #a !t Na%F Retr!e@ed

?ro% htt:BBBFthesa!'o"t!%esF@"1.0&/&Th!truo"'Tru"'Vuo#@a"de"'o#ho

th!theo#ua!etNa%Fht%9

!et N'uye"F G!4"h 1/ th7 hi" thk# l" #hl" "um!: Hba Phct #v uc tha% @w"'x

Nh!#audautuF htt:"h!#audautuF@"doa"h"'h!eha"t!#h'!a"h1/th!ha"thu#

a"#ha""uo!hoahat#ouatha%@o"'-&081/5a.C1I'2#5I


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Thuy 2!"hF z"' 9{" @4o #u# '!|# %+ '!g% 9}! su|t #v th4"h h!" th~#xPha9uatF Retr!e@ed

?ro% htt:9oF@"$!"hteo"'9o"@ao#uo#'!a#%o'!a%9a!suat#otha"hh!e"

thu#L&6/L.Fht%9


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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY ./

Ae"d!


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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY .1


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CASE STUDY: HOA PHAT GROUP JOINT STOCK COMPANY .&


Documents

Group 2 (ME 03) - Hoa Phat Group