Hoa Sen Group Spins Off Hoa Sen Home to Strengthen Domestic Retail Focus

Strengthen Domestic Retail Focus

Vietnam: Hoa Sen Group, one of Vietnam’s largest steel producers, has carved out its building materials and home furnishings retail business into a new subsidiary, Hoa Sen Home, as it shifts focus toward the domestic market amid continued export volatility. Hoa Sen Group owns 99% of Hoa Sen Home JSC, which was incorporated on January 5 with a charter capital of USD 38 million. Headquartered in Thu Duc ward, Ho Chi Minh City, the subsidiary manages and expands the nationwide Hoa Sen Home retail network, which has been operating since 2021. The network currently includes 12 distribution hubs, over 400 retail outlets, and more than 140 supermarket-format stores, offering products ranging from steel and galvanized sheets to tiles and sanitary ware. At its launch, the company announced plans to expand to 165 supermarkets by 2026 and at least 300 by 2030, including large “Mega Home” stores of up to 30,000 square metres, with the long-term goal of building a leading national retail platform for construction materials and interiors.

In 2024 to 2025, Hoa Sen Home recorded revenue of more than USD 605.39 million and is targeting USD 700.58 million in sales in 2026, with ambitions to eventually exceed USD 1 billion in annual revenue. The group is also considering an IPO of Hoa Sen Home when market conditions permit. To support expansion, Hoa Sen Home signed cooperation agreements with technology firms including Alibaba and Salesforce to enhance digital operations and supply chain efficiency and also partnered with the Ho Chi Minh City Trade Union to support the development of 20,000 social housing units between 2026 and 2030. Separately, Hoa Sen Group has approved the establishment of Hoa Sen Hai Phong One Member Limited Liability Company, a wholly owned subsidiary with charter capital of USD 11.39 million, based in the Nam Dinh Vu Non-Tariff Zone and Industrial Park in Hai Phong. This unit will focus on the production of iron, steel, and pig iron, alongside activities such as metal processing, logistics support, freight intermediary services, and wholesale of metals and metal ores.

Source: The Investor