Formosa Ha Tinh has reported a loss of VND16 trillion ($666.7 million) in 2023

Formosa Plastic Group's annual finance statement showed that to maintain market share and avoid losing customers, Formosa Ha Tinh Steel had to reduce prices, even though there wasn’t a significant decrease in raw materials costs. As a result, the company was unable to meet expectations, with annual revenue of approximately $17.1 billion, a 3.2 per cent drop from 2022, and an annual loss of approximately VND15.7 trillion ($654.16 million).

In the first half of April, Formosa Ha Tinh's hot rolling mill was overhauled, so steel production was halted. In addition, in recent times, a strong increase in imported steel products from countries such as China and India has affected the production stability of domestic steel manufacturing enterprises.

In 2022, the company suffered a loss of nearly VND8 trillion ($333.3 million) after it debuted new steel products in a falling global market, forcing the company had to adjust its production plans to meet market demands.

The bleak business results also impacted Ha Tinh province’s budget in the first half of 2024. Statistics published on Ha Tinh's portal showed that as of June 15, tax paid by foreign-invested companies had reached just VND558.5 billion ($23.27 million), down 69.03 per cent on-year.

Between January and June, the central province’s balanced budget revenue from imports and exports was estimated at VND2.23 trillion ($92.91 million), declining 7.25 per cent, due to the impact of Formosa’s drop in import-export turnover.