Central Vietnam province okays Hoa Phat's $393 mln railway track project

By Thanh Van, Minh Hue
Tue, July 29, 2025 | 5:19 pm GMT+7

The Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority on Tuesday gave in-principle approval to a $393 million rail track and special steel project by Hoa Phat Dung Quat Rail and Special Steel JSC, a subsidiary of steel giant Hoa Phat.

 An overview of the Hoa Phat Dung Quat Iron and Steel Complex in Quang Ngai province, central Vietnam. Photo courtesy of Hoa Phat Group.

An overview of the Hoa Phat Dung Quat Iron and Steel Complex in Quang Ngai province, central Vietnam. Photo courtesy of Hoa Phat Group.

The project, with a designed annual capacity of 700,000 tons, will cover 14.79 hectares in the Eastern Industrial Park within the Dung Quat Economic Zone, located in Van Tuong commune, the central province of Quang Ngai.

Of the total investment, VND3.8 trillion ($144.92 million) will come from the investor's equity, and VND6.2 trillion will be raised through other means.

The project is granted a 50-year operational term, starting from the date the land is officially allocated or leased by the government.

From Q3/2025 to Q2/2026, the investor will complete all legal procedures, including compensation and site clearance. The plant is expected to be operational by Q3/2028.

The project will receive investment incentives and support in accordance with current Vietnamese laws.

The authority said the project's primary goal is to produce iron, steel, and related products under code 2410 in accordance with the Vietnam Standard Industrial Classification (VSIC) 2018.

It aims to address the urgent market demand for high-quality railway steel while aligning with the government’s broader strategy to promote domestic industrial and supporting sectors.

According to the authority, once operational, the project will meet the growing demand for railway steel in upcoming national projects such as the North-South high-speed railway; urban rail systems connecting Hanoi, Lao Cai, and Hai Phong; and other major infrastructure developments.

This will help improve transportation infrastructure, accommodate increasing cargo and passenger traffic, reduce import dependency, and lower logistics costs, it said.

Additionally, the project supports the synchronized development of Hoa Phat’s steel production ecosystem, securing raw material sources and contributing to the company's green steel roadmap, it added.

The project is expected to generate annual revenue of nearly VND11.44 trillion ($436.28 million), contribute an estimated VND149.7 billion in annual taxes to the local state budget, and create about 400 direct jobs, helping boost Quang Ngai’s GRDP and industrial output as well as the development of Vietnam’s steel industry in general.

Hoa Phat is currently the largest steel producer in Vietnam and among the top 50 largest steel companies in the world. The group has exported products to 40 countries and territories.

The group’s projects in the Dung Quat Economic Zone have created jobs for about 17,000 direct workers, more than 80% of whom are locals, as well as tens of thousands of workers from its contractors and partners.

Hoa Phat is listed on the Ho Chi Minh Stock Exchange (HoSE) as HPG, which closed Tuesday at VND25,350 ($0.97) per share.

Comments (0)
  • Read More
TCBS overtakes SSI to become Vietnam’s largest securities company by market cap

TCBS overtakes SSI to become Vietnam’s largest securities company by market cap

Over 2.3 billion shares of Techcom Securities JSC (TCBS) debuted on the Ho Chi Minh City Stock Exchange (HoSE) on Tuesday. The stock, TCX, recorded the highest price and the largest market capitalization in the Vietnamese securities sector.

Finance - Tue, October 21, 2025 | 10:27 pm GMT+7

Indonesia’s palm oil industry becomes investment magnet

Indonesia’s palm oil industry becomes investment magnet

Indonesia’s palm oil sector attracted IDR52.7 trillion, or approximately $3.2 billion, in investment during the first nine months of this year, with the money going into enabling the country to capture more value out of its top commodity, the country’s Ministry of Investment reported.

Southeast Asia - Tue, October 21, 2025 | 9:34 pm GMT+7

Indonesia reports strong job, investment growth

Indonesia reports strong job, investment growth

The Indonesian Coordinating Ministry for Economic Affairs reported strong job and investment growth during the first year of President Prabowo Subianto’s administration, compared with the first year under his predecessor.

Southeast Asia - Tue, October 21, 2025 | 9:29 pm GMT+7

Singapore grants conditional approval for 1GW low-carbon power import from Malaysia

Singapore grants conditional approval for 1GW low-carbon power import from Malaysia

Singapore has granted conditional approval to import 1 GW of low-carbon electricity from the Malaysian state of Sarawak, marking a new phase in the energy partnership between the two countries.

Southeast Asia - Tue, October 21, 2025 | 9:26 pm GMT+7

Margin lending in Vietnam’s stock market hits record, but not worrisome

Margin lending in Vietnam’s stock market hits record, but not worrisome

Despite margin debt in Vietnam’s stock market surging sharply, experts believe that current margin pressure is not yet a major concern as top securities firms have significantly strengthened their capital buffers.

Finance - Tue, October 21, 2025 | 4:23 pm GMT+7

Lenders in Vietnam now in low-rate lending race: ACB exec

Lenders in Vietnam now in low-rate lending race: ACB exec

The biggest “headache” for banks in Vietnam now is that profit margins are getting thinner, said CEO of Asia Commercial Bank (ACB) Tu Tien Phat.

Banking & Finance - Tue, October 21, 2025 | 4:00 pm GMT+7

PV Gas - 35 years of innovation and technological leadership in Vietnam’s gas industry

PV Gas - 35 years of innovation and technological leadership in Vietnam’s gas industry

Over the past 35 years of establishment and development (1990-2025), PV Gas, a subsidiary of state-owned giant Petrovietnam, has affirmed its pioneering position in Vietnam’s gas industry, marked by a series of groundbreaking achievements in science and technology.

Companies - Tue, October 21, 2025 | 3:45 pm GMT+7

Vietnam's consumer finance major F88 achieves 90% of year's profit target after 9 months

Vietnam's consumer finance major F88 achieves 90% of year's profit target after 9 months

F88 Investment JSC (F88), a leading consumer finance company in Vietnam, reported a cumulative pre-tax profit of VND603 billion ($22.88 million) in the first nine months of 2025, a 2.5-fold increase year-on-year, reaching 90% of its full-year target of VND673 billion.

Companies - Tue, October 21, 2025 | 3:15 pm GMT+7

Vietnam corporate earnings to be driven by credit expansion, trading activity, property recovery

Vietnam corporate earnings to be driven by credit expansion, trading activity, property recovery

With Q3 earnings season underway, results are expected to come in broadly in line with expectations. Financials should remain the largest contributors, benefiting from credit expansion and trading activity, while real estate continues to recover as project launches and sales rates improve, writes Tung Dang, associate director at Dragon Capital.

Economy - Tue, October 21, 2025 | 2:33 pm GMT+7

Inland port opens in southern Vietnam province Tay Ninh, set to become border logistics hub

Inland port opens in southern Vietnam province Tay Ninh, set to become border logistics hub

The 16.5-hectare Tan Cang-Moc Bai inland port in Tay Ninh province, southern Vietnam has been opened, offering logistics services and handling customs clearance for imports and exports.

Infrastructure - Tue, October 21, 2025 | 12:03 pm GMT+7

State-managed property trading centers will help curb speculation, price manipulation: expert

State-managed property trading centers will help curb speculation, price manipulation: expert

Establishment of state-managed real estate trading centers is expected to create a transparent transaction channel, helping control and limit speculation and price manipulation in the Vietnamese market.

Real Estate - Tue, October 21, 2025 | 8:37 am GMT+7

Vietnam's benchmark VN-Index records sharpest drop in 25-year history

Vietnam's benchmark VN-Index records sharpest drop in 25-year history

VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), saw the sharpest decline in its 25-year history on Monday, down by 94.76 points, or 5.47%, to 1,636.43.

Finance - Mon, October 20, 2025 | 5:49 pm GMT+7

Construction contractor Coteccons sets record FY2026 targets, capital base hike via share issue

Construction contractor Coteccons sets record FY2026 targets, capital base hike via share issue

Coteccons Construction JSC (HoSE: CTD), one of Vietnam’s largest construction contractors, has set ambitious targets for its fiscal year 2026, driven by a record order backlog and its push into international markets.

Companies - Mon, October 20, 2025 | 4:50 pm GMT+7

Real estate, gold markets to be fully established by 2026: Prime Minister

Real estate, gold markets to be fully established by 2026: Prime Minister

Vietnam plans to complete comprehensive legal framework for its financial, real estate, and gold markets by 2026 as part of a broader effort to modernize market infrastructure and accelerate economic growth, said Prime Minister Pham Minh Chinh.

Finance - Mon, October 20, 2025 | 3:33 pm GMT+7

Vietnam breaks ground on nation’s most advanced domed stadium in Hung Yen province

Vietnam breaks ground on nation’s most advanced domed stadium in Hung Yen province

Vietnam’s Ministry of Public Security has broken ground on a 60,000-seat domed stadium in the northern province of Hung Yen, set to become the country’s most technologically advanced sports venue.

Society - Mon, October 20, 2025 | 2:48 pm GMT+7

Workforce and logistics - keys to sustainable e-commerce growth in Vietnam: experts

Workforce and logistics - keys to sustainable e-commerce growth in Vietnam: experts

Businesses and online shop owners in Vietnam should pay greater attention to human resources and logistics, considering these factors “keys” to competitive advantage in the increasingly volatile e-commerce market, according to experts.

Economy - Mon, October 20, 2025 | 10:54 am GMT+7