Hoa Sen Group (HSG) Merges Subsidiaries, Raises Hoa Sen Saigon Stake to 77.5%

Overview

Hoa Sen Group (HSG), listed on the Ho Chi Minh City Stock Exchange (HOSE), approved a restructuring of its operating model through the merger of several wholly-owned member companies. Separately, the group increased its ownership in Hoa Sen Saigon to 77.5% with an additional VND 300 billion capital contribution. The moves simplify HSG’s corporate structure and consolidate control over a subsidiary it had previously planned to reduce.

Key Facts

• HSG will merge Hoa Sen Ha Nam and Hoa Sen Yen Bai Building Materials into Hoa Sen Nghe An, all three currently 100% owned by HSG.
• After the merger, Hoa Sen Nghe An will operate branches including the Hoa Sen Yen Bai Building Materials Plant and the Hoa Sen Ha Nam Plant.
• HSG will merge Hoa Sen Binh Dinh into Nhon Hoi - Binh Dinh; the combined entity will operate the Hoa Sen Binh Dinh steel plant branch.
• HSG contributed an additional VND 300 billion to Hoa Sen Saigon, raising that company’s charter capital to VND 400 billion.
• Following the contribution, HSG holds 31 million shares, or 77.5% of Hoa Sen Saigon, with a par value of VND 310 billion.
• About four months earlier, HSG had approved reducing its Hoa Sen Saigon stake from 40% (4 million shares, VND 40 billion) to 10% (1 million shares, VND 10 billion).
• Hoa Sen Saigon was established in February 2024 in An Khanh Ward, Ho Chi Minh City, with initial charter capital of VND 100 billion.

What Happened

According to the company’s announcement, HSG’s board approved two merger tracks. First, Hoa Sen Ha Nam and Hoa Sen Yen Bai Building Materials, both wholly-owned limited liability companies, will be absorbed into Hoa Sen Nghe An. The surviving entity will register operations that include branches for the Yen Bai building materials plant and the Ha Nam plant. Second, Hoa Sen Binh Dinh will be merged into Nhon Hoi - Binh Dinh, with the resulting company operating the Hoa Sen Binh Dinh steel plant branch.

Separately, HSG approved an additional capital contribution to Hoa Sen Saigon, lifting that company’s charter capital from VND 100 billion to VND 400 billion. HSG’s holding rises to 31 million shares, equivalent to 77.5% of Hoa Sen Saigon, with a par value of VND 310 billion. The new capital is intended to fund investment projects. This reverses a resolution from roughly four months earlier that would have cut HSG’s stake in Hoa Sen Saigon from 40% to 10%. Hoa Sen Saigon was founded in February 2024 with HSG holding 40%, Chairman Le Phuoc Vu holding 10%, and Hoa Sen Investment Group holding 50%.

Market Context

HSG closed at 10,000 VND on 25 September 2026 on HOSE. The stock trades in the Basic Resources sector, where Vietnamese steel names remain sensitive to domestic construction demand, export volumes, and input cost swings. The restructuring announcement comes as HSG continues to streamline a group structure built around multiple plant-level subsidiaries. No transaction value for the mergers was disclosed in the source article.

Strategic Significance

The merger of wholly-owned units into Hoa Sen Nghe An and Nhon Hoi - Binh Dinh reduces the number of legal entities HSG must administer, which can lower compliance and administrative overhead across its plant network. The larger signal is the reversal on Hoa Sen Saigon: after moving to cut its stake to 10%, HSG is now consolidating 77.5% control and injecting VND 300 billion for project development. That suggests the subsidiary is being positioned as a vehicle for new investment rather than a holding to be diluted, giving HSG tighter control over capital allocation within the group.

What to Watch

• Completion filings for the mergers with the business registration authority, including the final legal status of the surviving entities.
• Details of the investment projects to be funded by the VND 300 billion injection into Hoa Sen Saigon.
• HSG’s next quarterly earnings release for any restructuring costs or changes in consolidation scope.
• Any further changes to HSG’s ownership in Hoa Sen Saigon or related-party holdings.
• Domestic steel demand and export data, which drive HSG’s core plant utilization.