VNSTEEL: Conference to review the work in 2020, implementing the work in 2021

In the morning of January 15, 2021, in Hanoi, Vietnam Steel Corporation – Joint Stock Company (VNSTEEL) held a conference to review the work in 2020, implementing the work in 2021.

Mr. Nguyen Duc Phong, Deputy Secretary of the Party Committee of the Central Business Sector attended and directed the conference, attended by representatives of the Ministry of Industry and Trade, ministries, central departments and the State Capital Investment Corporation (SCIC).

On the side of the Corporation, there are Mr. Le Song Lai, Chairman of the Board of Directors of the Corporation; Comrade Nguyen Dinh Phuc, Deputy Secretaryin charge of the Party Committee, Member of the BoD, General Director; comrades in the Party Committee, BOD, Board of Directors, leaders ofsocio-political organizations in the Corporation; leaders of Departments / Offices; representatives of units of the Corporation.

Delegates attended the 2020 Conference of Vietnam Steel Corporation

Maintaining growth momentum

In the context of economic and market difficulties due to epidemics, natural disasters and floods, competition in the industry is constantly increasing; The production and business results in 2020 of Vietnam Steel Corporation still exceeded the set plan and some main targets had slight growth over the same period. The production and business sector accounts for a large proportion of construction steel (long steel) which retains stability; Meanwhile, the flat steel sector (cold rolled, galvanized steel) has many positive changes and achieved high growth.

In 2020, the company's steel billet production reached 2,359 million tons, reaching 107% of the plan and decreasing by 5% over the same period; consumption of 697,727 tons, reaching 117% of the plan and decreasing by 7% over the same period.

The production and consumption of construction steel reached approximately 110% of the plan and decreased by 2-3% over the same period, partly because from June 2020, the Corporation divested at Tay Do Steel Company, thus reducing the overall output of the Corporation. Construction steel consumption reached over 3.25 million tons. In particular, there is a significant contribution of steel producers from electric furnaces (steel blocks / V / Vinakyoei) accounting for a large proportion of the total construction steel of the Corporation. Some units such as Vinausteel, Be Be Steel, Natsteelvina have good growth in consumption in 2020.

Mr. Pham Cong Thao - Deputy General Director of the Corporation presented the report on the summary of work in 2020 to implement the mission direction in 2021

In the face of market fluctuations due to the Covid-19 epidemic in 2020, the demand for cold rolled processing increased, the consumption of cold rolled steel throughout the Corporation system exceeded the plan by 40% and increased by 39% over the same period. In particular, PFS's ma chiped output increased by 200% over the same period and TNFS increased by 136% over the same period.

2020 is also a successful year for manufacturers in the field of galvanized steel when the finished consumption of galvanized steel exceeds 10% of the plan and increases by 11% over the same period. Taking advantage of market opportunities, in the second quarter, III units promoted consumption activities, bringing high business efficiency.

In 2020, the aggregate net revenue of the whole VNSTEEL system reached VND 78,169 billion. In particular, the parent company reached VND 2,488 billion, equal to 163.8% of the plan in 2020; subsidiaries reached VND 41,675 billion, equal to 93.8% over the same period last year; affiliated companies reached VND 34,005 billion.

The aggregate pre-tax profit of the whole system reached VND 891 billion. In particular, the parent company reached VND 56 billion; Subsidiaries reached VND 621 billion, profit on capital contribution in 2020 was VND 524 billion; The associated company block reached VND 213 billion, the profit is calculated on the capital contribution ratio in 2020 with profit of VND 69 billion.

Thus, if calculating the total 2020 combined revenue of Vietnam Steel Corporation reached VND 30,000 billion, equal to 100% of the plan; the combined profit before tax reached VND 260 billion.

The above results show that in 2020, although the Covid-19 epidemic has negatively affected many manufacturing industries of our country, including the steel industry. However, Nam Streak Steel Corporation has taken appropriate steps, actively approached and increased competitiveness through improving product quality, expanding the market, continuing to review and re-evaluate sales policies and distribution systems to make appropriate adjustments,  ensuring the promotion of consumption output, building a stable distribution system and long-term development. Proactively and promptly in restructuring production and business according to market signals, increasing competitiveness through cost savings, improving corporate governance capacity to lower costs, improve product quality, find more consumption markets to limit losses. Along with that, through improving the capacity of management, management and technological improvement in steel production has helped Vietnam Steel Corporation achieve many breakthroughs, overcome existing difficulties and challenges. Production and business efficiency meets and exceeds the set goals.

The above results show the outstanding efforts of cncbv team throughout the Corporation, which is recognized and appreciated by the results that the whole system of corporations has achieved in the past year. These results are also of special significance when in 2020, the Corporation has to focus large resources to coordinate with all levels to handle the existence from the previous phase of 2 projects: Thai Nguyen Iron and Steel Phase 2 (Tisco) and Viet Trung Metallurgy Minerals (VTM).

Mr. Nguyen Dinh Phuc - Deputy Secretary in charge of theParty Committee, Member of theBoD, General Director of the Corporation spoke at the conference

Speaking at the conference, Mr. Nguyen Dinh Phuc – General Director of VNSTEEL said that, despite facing difficulties, under the close direction of SCIC Leaders; The Party Committee, the Board of Directors, the Board of Directors of the Corporation have timely given drastic direction in sticking to the market, reducing inventory, reducing costs,... and along with the efforts of workers throughout the system. Vietnam Steel Corporation has maintained stable production and business activities, exceeded the set plan and some main targets with slight growth over the same period, production and business continue to be effective.

There are many challenges

Entering 2021, the domestic economy is forecast to continue to recover from the Covid-19 epidemic, GDP sets a target of 6% growth. Along with the complicated and unpredictable market developments, the impact of the US-China trade war has not ended, so exports face many barriers, construction works still face many difficulties in mechanisms, policies, tightening lending credit. The steel industry is forecast to continue to grow and will continue to face many difficult challenges. In order to complete the task of production and business plan in 2021, the Corporation has come up with many specific orientations, solutions and throughout the fields to implement this year.

One of those orientations is to build the management solution of the Corporation towards international integration and in accordance with the practice in Vietnam to ensure compliance with legal regulations, transparency and compactness. At the same time standardize strict and adequate regulations, regulations and procedures for managing enterprises; strengthening the inspection and supervision of the system; ensuring increased efficiency for the Corporation and preservation and development of the Corporation's investment capital in enterprises.

Besides, it is determined to carry out the restructuring and arrangement of enterprises at the Corporation in the direction of streamlining and reducing clues, focusing resources on finance, human resources and equipment ... into the strength of the Corporation in the main production and business, improving business efficiency.

Mr. Nguyen Duc Phong, Deputy Secretary of the Party Committee of the Central Business Sector, spoke at the conference

Speaking at the conference, Mr. Nguyen Duc Phong, Deputy Secretary of the Party Committee of the Central Business Sector recognized and appreciated vnsteel's outstanding efforts in 2020.

Mr. Phong also said that there are still many difficulties ahead, VNSTEEL continues to stick to the market, reviewing the difficulties to continue overcoming difficulties, especially maintaining market share, bringing financial efficiency. Units in the corporation need effective coordination, ensuring inheritance. It is necessary to quickly restructure production and business according to market signals, increase competitiveness through cost savings, improve corporate governance capacity to lower costs, improve product quality, find more export markets to limit losses. Focus resources to solve difficulties, exist at Viet Trung Mineral and Metallurgy Company and Thai Nguyen Iron and Steel Company.

Mr. Le Song Lai – Chairman of VNSTEEL's Board of Directors spoke at the conference

Mr. Le Song Lai – Chairman of VNSTEEL's Board of Directors would like to promise to stick to the plan, orientation, promote the implementation of risk management solutions in the context of the domestic and world economy is still complicated,  will be realized by all specific actions to bring the management of investment capital of the Corporation into a difficult and increasingly effective way, contributing to improving the results and efficiency of the Corporation.

Also at the conference, the Standing Committee of the Party Committee - Board of Directors - General Director of the Corporation passed the regulation on the working relationship between the Party Committee, the Board of Directors and the General Director to create unity in the implementation of management management at the Corporation.

Signing the regulation on the working relationship between the Party Committee - BOD - General Director of the Corporation

Acknowledging and supporting a number of organizations and individuals with outstanding challenges in 2020, the Chairman of the State Capital Management Committee at the enterprise and VNSTEEL decided to award certificates of merit to all organizations and individuals.

Honoring outstanding organizations and individuals