Vietnamese Steel Enterprises Report Big Profits despite Huge Challenges
Vietnamese steel producers and traders said they have made big profits so far this year despite country’s economic difficulties in the period, according to a source from the Ministry of Industry and Trade.
Steel enterprises said they earned big profits because they imported steel ingots with low prices from late 2007 and re-exported with high prices.
Steel enterprises earned more profits than the same period last year’s, they said.
In the first half this year, the Vietnam-Italy Steel Company posted net profits of more than VND39 billion (US$2.36 million); Dinh Vu Steel Company VND227 billion, a 18-fold increase against the same period last year; and Hoa Phat Group VND735.5 billion.
The Vietnam Steel Corporation made profits of VND409 billion just in the first four months this year.
However, several steel enterprises, mostly small-sized ones, suffered loss in the period.
According to the General Statistics Office (GSO), Vietnam is estimated to spend US$5.47 billion importing 6.83 million tons of iron and steel in the first eight months this year, up 38.7 per cent in value on-year and 81.3 per cent in value. (sgtt.com.vn, GSO Aug 2008)
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