Business

“Someone said we were very poor with money”

On March 17, 2022 in Hanoi, a credit contract signing ceremony took place between Hoa Phat Dung Quat Steel Joint Stock Company and 8 major banks in Vietnam. Accordingly, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) plays the key role in arranging a credit syndication of VND35,000 billion for the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project (Dung Quat 2).

8 banks participating in financing Dung Quat 2 include: Vietcombank, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Bank for Agriculture and Rural Development of Vietnam (Agribank), Joint Stock Commercial Bank for Industry and Trade of Vietnam (Vietinbank), Military Commercial Joint Stock Bank (MB), Tien Phong Commercial Joint Stock Bank (TPBank), Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Vietnam Maritime Commercial Joint Stock Bank (MSB).

This is the largest loan ever of Hoa Phat with banks, with a term of 7 years and a grace period of 2 years. The withdrawal period is 24 months from the date of first disbursement.

  Having more than 40,000 billion in cash, but borrowing from 8 banks 35,000 billion for Dung Quat 2 project, Chairman Tran Dinh Long lamented: Someone told us to run money very poorly - Photo 1.

Speaking at the event, Chairman Tran Dinh Long said: “This 35,000 billion VND credit from Vietcombank and 7 co-financed banks has an important meaning, ensuring the success of the project. With the experience and success from Hoa Phat Dung Quat 1 Iron and Steel Production Complex 1 , the Group commits that the Dung Quat 2 project will reach the finish line on schedule, ensuring that the banks’ capital flows are used for the right purposes, bringing the highest efficiency.”

Sharing about the potential of the project, Chairman Tran Dinh Long said: “Dung Quat 2 project follows in the footsteps of Dung Quat 1 project. We manufacture hot rolled coil steel, so far only Formosa Ha Tinh and Hoa Phat can produce, the demand is huge in Vietnam. In 2021. Vietnam consumes about 14 million tons of HRC, which is the product that creates post-steel products such as steel pipes, color coated corrugated iron, automobile manufacturing and leather goods.

In 2021, Hoa Phat and Formosa will produce about 6 million tons of HRC, while the demand will be more than 13 million tons, which is less than 50% of the market demand. Vietnam will become the world’s factory, it’s only a matter of time. Therefore, the demand for HRC will grow by 10% annually, we calculate that by 2025 Vietnam will consume about 16-17 million tons of HRC, if adding 6 million tons of Dung Quat 2, the demand may consumable.

  Having more than 40,000 billion in cash, but borrowing from 8 banks 35,000 billion for Dung Quat 2 project, Chairman Tran Dinh Long lamented: Someone told us to run money very poorly - Photo 2.

I affirm that HRC is a hot product and has a real demand. Like Dung Quat 1 and Hai Duong before, it was very difficult for us to present to the bank and shareholders, everyone was very worried that there would be an excess of steel, but I reported to the banks that this product has not been released yet. over.

Hoa Phat’s way of doing things is that we often think for a long time, in the market people often say we are conservative, we think long and hard but do it very quickly. All of our foreign and internal contracts have been prepared, we have now implemented a few parts and committed to release the first product in 28-30 months. We will do it very quickly, very carefully with the best schedule.

This August, Hoa Phat celebrates its 30th anniversary, we have accomplished many things, one of which I am always proud of is that Hoa Phat always keeps its credit commitments with the bank. Hoa Phat has never had a slow day of any bank, 3-4 days ago on the mass media, it was reported that Hoa Phat is the enterprise with the most cash in Vietnam, more than 40,000 billion, this shows that is that we manage money very poorly, it shows the character of Hoa Phat’s management that is highly focused on Dung Quat 2 although I know that if the money is used for other things, it can be more effective but no dare to use. We guarantee the counterpart of Hoa Phat to implement the project in the best way, the bankers say that Hoa Phat has such a fee for bank deposits.

  Having more than 40,000 billion in cash but borrowing from 8 banks 35,000 billion for Dung Quat 2 project, Chairman Tran Dinh Long lamented: Someone told us to run money very poorly - Photo 3.

Hoa Phat is the leading enterprise in terms of cash on the exchange

I fully commit to the counterpart capital, even excess, and I commit with 100% certainty that it is effective in using capital and paying the bank in full.

Representatives of banks believe that Dung Quat 2 project will be successful, and commit to always be ready to accompany Hoa Phat Group, bringing mutual benefits to all parties, promoting the development of Vietnam’s steel industry. friendly, modern, large-scale.

Dung Quat 2 project has a scale of over 280 hectares, located next to Hoa Phat Dung Quat 1 Iron and Steel Complex. Design capacity includes 5.6 million tons of hot rolled coil (HRC)/year. The total investment capital of the project is 85,000 billion VND. It is expected that Hoa Phat will start construction of Dung Quat 2 project in the first quarter of 2022 and complete it within 3 years from the date of commencement.

With Dung Quat 2, Hoa Phat will invest in the most modern and synchronous technology line in the world today, producing hot rolled steel coils from iron ore. When the project is completed, the Group’s steel production capacity will reach 14 million tons/year, putting Hoa Phat in the Top 30 largest steel enterprises in the world from 2025.

The project will also create more jobs for about 8,000 workers, strongly promote Vietnam’s mechanical and auxiliary industries, positively contribute to the growth of industrial production value and budget revenue of the country. Quang Ngai province in the long term.

https://cafef.vn/co-trong-tay-hon-40000-ty-tien-mat-nhung-di-vay-8-ngan-hang-35000-ty-cho-du-an-dung-quat- 2-chu-tich-tran-dinh-long-than-co-people-bao-chung-toi-van-hanh-tien-rat-lakem-20220317171846862.chn


According to Chau Cao

Business and Marketing

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