Hoa Phat shares (HPG) have suffered significant losses, losing about 20 trillion VND in market capitalization in 2025 and dropping out of the top 10 stocks in the country. By the end of 2025, Hoa Phat’s market capitalization was only around 200 trillion VND, while Vingroup (VIC) reached a record level of 1.3 trillion VND. Notably, Vingroup’s announcement to enter the steel market through VinMetal has created great pressure on Hoa Phat. After VinMetal launched and increased its charter capital to 15 trillion VND, HPG’s value dropped by about 10%. Vingroup is also investing in a large steel project in Ha Tinh with an investment of nearly 80 trillion VND, expanding competition in this field. By cooperating with Pomina, a former rival, Vingroup promises to optimize production and reduce costs, posing risks to Hoa Phat. However, KBSV believes that short-term risks for Hoa Phat are relatively limited due to their market share and scale advantages in the steel industry.
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