After nearly a year of facing tariff pressure and trade barriers, Nam Kim Steel ( Code NKG) has proactively "withdrawn" from the large export market. From Q4/2024, the business will completely stop selling to America. "Nam Kim has not sold to America since Q4/2024," said Mr. Ho Minh Quang – Chairman of the Board of Directors of the company during the 2025 annual general meeting.
Similar to the strategy of some major coated steel manufacturers including Hoa Sen (HSG), Nam Kim is focusing on consolidating domestic capacity and seeking alternative markets. One notable move is the continuous adjustment to increase investment for the Nam Kim Phu My roofing steel plant project – a key project that represents the strategic repositioning of the company.
In April 2025, the project was approved to increase its capital from 4.500 trillion to 5.800 trillion VND. By mid-July, the company continued to adjust the investment capital up to 6.200 trillion VND, divided into two phases, to be implemented by 2027. It calculates that in just under 3 months, the company has increased the project's capital by an additional 1.700 trillion VND (38%).
The project is invested by Nam Kim Phu My Steel Co., Ltd., focusing on developing silicon electrical steel - a product used in electric motors, automobiles, transformers, and household electrical appliances. This means that this steel enterprise can completely participate in the supply chain of the electric vehicle industry of VinFast, THACO, or the supply chain of electrical equipment of Gelex Group.
In fact, the company is accelerating disbursement for the project. The financial report for Q1/2025 shows that the cost of unfinished basic construction has increased by more than 800 billion VND to 1.1 trillion VND, mainly concentrated in the Phu My plant project.
According to Mr. Vo Hoang Vu – General Director of Nam Kim – the technology of the Phu My plant is "completely different", not overlapping with existing technology in the industry. The products are aimed at the high-end segment – auxiliary industry, precision mechanics, and household appliances – which have better profit margins and lower levels of competition compared to traditional galvanized steel.
It is expected that the plant will operate from the first quarter of 2026, needing 2–3 quarters to reach 50–60% capacity and striving for maximum operation from 2027. Company leaders hope this project will mark a turning point in improving gross profit margins and restructuring the product portfolio towards sustainability and high technology.
Regarding business results, in Q1/2025, Nam Kim achieved revenue of 4.090 trillion VND, and after-tax profit of 65.4 billion VND – a decrease of 22.7% and 56.4% compared to the same period last year, respectively. The gross profit margin has dropped to only 6.4%. The annual target is 23 trillion VND in revenue and 440 billion VND in pre-tax profit. After the first quarter, the company has only realized 18.4% of its annual profit plan.
In the context of the domestic market gradually recovering, shifting towards high value-added steel products for industry and technology exports can help Nam Kim consolidate its position, escape from fierce price competition, and simultaneously create a sustainable foundation for long-term growth.