Asean Steel Joint Stock Company (Vietnam)

Being established in 2008, the subject specializes in manufacturing and trading construction steel products, mainly rolled steel wires, rebar steel, and steel billet. Products are mainly provided to agents in the Highland Central region of Vietnam. Sometimes, the company also exports to Cambodia, Taiwan, the Philippines, and Thailand. The subject's annual revenue tended to go up in recent years thanks to the regular expansion of production facilities. Especially, along with skyrocketed steel prices during the Covid Pandemic, its annual net revenue during the period of 2020-2021 was clearly higher than the volume in 2019. However, according to news from the Vietnam Steel Association, the year 2022 caused many difficulties to the steel industry, meanwhile, many sectors recorded growth thanks to the recovery after the COVID pandemic. Domestic consumption declined, and prices of materials for steel production complexly fluctuated, making many enterprises suffer losses. The subject seems to have been in the same situation. Net sales in 2022 were depressed by 17.12% over the year 2021, especially, it lost VND 13.5 billion instead of a positive net income in previous periods mainly due to higher costs of goods sold.Steel production and consumption in the first 6 months of 2023 continue to decline, 20.9% and 17.5% respectively compared to the same period in 2022. The main cause of the decline is reduced demand. In addition, domestic steel businesses also have to compete with cheap steel from China when this country continuously lowers export steel prices (the first 6 months of 2023, imported steel from China accounts for 54.17% of total imported steel output). It is forecast that from now until the end of the year, steel consumption will still be poor and there may be many more price reductions. The above may negatively impact the subject's business activities in 2023.