The main problems faced by the company include the decrease in consumption in the global steel industry, increasing raw material costs and the intensity of competition. Formosa Ha Tinh, which is trying to enter export markets in particular, is trying to maintain its market share by having to reduce prices.
According to Formosa Plastics Group's statement, the company will continue its strategies of developing high value-added steel products and actively entering high-end markets. However, due to global economic conditions and market fluctuations, the difficulties that the company will face in the coming period may continue.
The difficult situation of Formosa Ha Tinh Steel in Vietnam also negatively affects the budget revenues of Ha Tinh province. The sharp decline in foreign investment income is also straining the state's financial situation and having widespread effects on the local economy.
In particular, decreases in steel production and decreases in local tax revenues are estimated to cause the state's industrial production index to decrease by 3.2% in the first half of 2024.
The challenges facing Formosa Ha Tinh Steel are likely to continue to affect the overall course of the industrial and economic environment in Vietnam.
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