Vietnamese billionaire Pham Nhat Vuong’s steel firm raises charter capital to $570mn

All the VND15 trillion in capital was contributed in cash by shareholders.

Vingroup on October 6 announced the establishment of VinMetal to mark its official entry into the metallurgy and steel manufacturing sector.

At launch, VinMetal had a charter capital of VND10 trillion, of which Vingroup held a 98-percent stake, while Vuong’s two sons each contributed one percent.

VinMetal was set to produce a wide range of steel products, including construction-grade steel, hot-rolled coil (HRC), high-strength steel, and specialized alloy steel to serve electric vehicle manufacturing and hi-speed transportation infrastructure.

According to Vingroup, VinMetal aims to secure supply chains for its real estate arm, electric vehicle manufacturing, and major industrial, energy, and transport projects, including the north-south high-speed railway, the Ho Chi Minh City - Can Gio and Hanoi - Quang Ninh routes.

The company has recently appointed Do Tien Si as CEO and legal representative, replacing Nguyen Viet Quang, who is Vingroup’s CEO.

With three decades of experience in the steel industry, Si serves as CEO and vice chairman of Pomina Steel Corporation, and is an independent board member and audit committee member at Mobile World Investment Corporation.

Despite being a new market entrant, VinMetal’s capital surpasses several major steelmakers, including VNSteel, VAS Group, Hoa Sen Group, and Nam Kim.

However, it still trails far behind industry leader Hoa Phat Group, which holds VND76.76 trillion ($2.92 billion) in charter capital.