Vietnam’s Hoa Sen Group’s (HSG’s) estimated galvanized steel sales for Q4 FY20 ended September 30, 2020, increased by 46pc to 525,277mt from 359,892mt in the same period a year ago.
HSG gained in the export sector after it exported 275,668mt of steel in FY 2020, up 154pc compared to the same period in FY 2019, the company said in a press release on Wednesday.
Exports grew every month in Q4 with July hitting 82,000mt, August 92,000mt, and September 101,000mt. The quarter, however, was impacted by a regional COVID-19 breakout that slowed domestic business activities, despite exports reaching 52pc of total steel sales. HSG attributed its surge in sales during the quarter to demand from nearly 600 stores in the domestic market and export channels to 85 countries.
The southeast Asian sheet steel exporter managed its logistics cost through 10 plants in strategic locations across the country, including those near international seaports, the firm indicated.
The company observed that it will continue to maintain lower administrative costs as a result of a three-year agreement extension starting August 2020, with the General Department of Customs to process HSG loads with priority. Apart from administrative savings, the agreement shortens the time for goods clearance to expedite customer receipt of goods.