AsemconnectVietnam - Vicasa Steel JSC – VNSteel (code VCA) has just sent an official dispatch to HOSE regarding the assessment of the ability to implement the 2025 production and business plan and the relocation of the Company.

Vicasa – VNSteel said that on May 9, the Company received Decision 1515/QD-XPHC on administrative sanctions from the People's Committee of Dong Nai province for not having an environmental license. The reason is that the Company is subject to relocation so that Bien Hoa Industrial Park (IP) can change the function of Bien Hoa I IP according to the policy of Dong Nai province, so the authorities did not issue an environmental license to the Company.
Therefore, Vicasa – VNSteel was suspended from operating the source of waste without an environmental license for 3.75 months from the date of receiving the penalty decision. At the same time, the steel must be relocated to a location that is suitable for the planning, environmental zoning, and environmental load-bearing capacity approved by competent authorities, which is not in accordance with the planning of Dong Nai province.
Because the authorities have implemented Decision 1515/QD-XPHC, the Company has now stopped production at the locations of steel furnaces and finished rolling products, and the Company's production of rolled steel and steel billets has been temporarily suspended. However, the Company's sales and consumption of products are still being maintained.
"This makes it very difficult for the Company to complete the production and business plan targets for 2025 according to the Resolution of the Company's 2025 Annual General Meeting of Shareholders", Vicasa - VNSteel emphasized.
In 2025, the Company has set a target of steel production of 150,000 tons and steel rolling production of 105,000 tons. With the consumption output, Viacasa expects rolled steel to reach 105,000 tons and billets to reach 40,000 tons. This will help the Company achieve VND5 billion in pre-tax profit, nearly 5 times higher than VND1.04 billion in 2024.
By the end of the first quarter of 2025, Vicasa Steel - VNSteel recorded revenue of VND310.8 billion, an increase of 9.65% over the same period last year. However, after-tax profit only reached VND36 million, a decrease of approximately 97% compared to VND1.2 billion in the same period last year.
However, the Company is still actively working with the authorities of Dong Nai province to remove difficulties and restore production activities. However, the possibility of resuming production is very low because Dong Nai province has a policy of relocating factories from Bien Hoa I Industrial Park, so it does not grant environmental licenses to businesses operating there.
Regarding the relocation issue as requested by the Dong Nai provincial authorities, the Company has proposed relocation plans for the Vietnam Steel Corporation - JSC (major shareholder holding 65% of shares) to submit to the competent authorities for approval. The Company will inform when the official plan is approved by the competent authorities.
N.Nga
Source: VITIC/Tinnhanhchungkhoan