Vietnam has one of the fastest growing economies in the world. The country’s construction industry is booming and new infrastructure, high-rise buildings and private housing projects are shaping the skylines of cities across the country.
Vina Kyoei Steel was established in 1994 as a joint venture between Kyoei Steel, Mitsui & Co., Marubeni-Itochu Steel and Vietnam Steel Corp. The company has supported the country’s economic growth for a quarter of a century by supplying steel products of the highest quality.
2015 proved to be a milestone year for Vina Kyoei Steel. The company established its second steel rolling mill and doubled production capacity to meet growing demand in the domestic market and neighboring countries.
“Our production capacity today is 900,000 metric tons per year (MT/year),” said Hiroyuki Iwasa, general director of Vina Kyoei Steel.
“Our second steel rolling mill has enabled us to increase our sales volume from 440,000 MT/year in 2014 to 830,000 MT/year in 2018. Our objective for 2019 is to reach full capacity, a target that I am confident we will achieve.”
One of the reasons for Vina Kyoei Steel’s success is the company’s network of 20 distributors across the country.
“Our business is based on trust and we have built strong and long-lasting relationships with our distributors,” said Iwasa. “A number of distributors whom we supported in the early days have become some of the largest in the industry. We have grown together and we continue to base our business relationships on loyalty.”
Vina Kyoei Steel has also entered the Cambodian market in partnership with three major distributors. The company’s yearly sales volumes in Cambodia have increased drastically from 19,000 MT/year in 2015 to 167,000 MT/year last year.
“The Cambodian market has incredible potential,” said Iwasa. “We are fortunate to have established strong partnerships that we will develop in a similar manner to those we enjoy in Vietnam.”
With the increasing number of high-rise buildings and apartments in urban areas, demand for steel products has grown in recent years. While developers and contractors prioritize cost over quality and value, Vina Kyoei Steel is looking to challenge this trend.
“We have an advantage within the private housing sector as customers and end users prioritize quality over cost,” said Iwasa.
“We produce high-quality products at an internationally recognized standard. Vietnamese developers and contractors, especially those working on high-end developments, continue to appreciate the high-quality products that we are able to deliver.”