Steel sheet giant Hoa Sen Group (HSG) is set to invest VNĐ990 billion (US$38 million) in Hoa Sen Home Joint Stock Company (HSH), a firm specialising in retailing construction materials and interior design, aiming to establish a new growth pillar for the group.

 

Under a resolution released on Thursday, HSH will have a charter capital of VNĐ1 trillion, with HSG contributing VNĐ990 billion, equivalent to 99 per cent of HSH’s charter capital, holding the controlling stake. Other founding shareholders will contribute a minority VNĐ10 billion, equivalent to 1 per cent of HSH’s charter capital.

 

The Board of Directors of HSG has appointed HSG Chairman Lê Phước Vũ as the authorised representative for all HSG capital contributions at the time of HSH’s establishment and for any subsequent capital increases.

 

According to Vũ, developing the HSH system will serve as HSG’s new growth engine. He believes it will not be difficult for HSH to achieve revenue of several billion US dollars, given the country’s large population and strong economic growth.

 

Estimates indicate that HSH will require VNĐ3.6 trillion to expand its store network during the 2025-30 period. In parallel, VNĐ1.4 trillion will be needed to complete 12 warehouses nationwide, alongside VNĐ400 billion for technology investments and VNĐ600 billion for marketing activities. — BIZHUB/VNS