Steel giant Hoa Phat to develop $162 mln industrial park in central Vietnam

Hoa Tam Industrial Park Infrastructure Development JSC, a subsidiary of Vietnam’s major steelmaker Hoa Phat Group, will develop the Hoa Tam Industrial Park (IP) first phase in the central province of Phu Yen province, with an investment of nearly VND4.2 trillion ($161.82 million).

The company on Friday secured in-principal approval from the provincial People’s Committee for the 496-hectare project in Hoa Tam commune, Dong Hoa township.

Of the first-phase investment, VND628.2 billion ($24.2 million) will come from the investor's equity and more than VND3.56 trillion ($137.17 million) from mobilized funding.

Construction will be completed within four years from the date of land allocation, while the project lifespan is 70 years, starting from the date of land allocation or leasing by the state authority.

In March 2024, Phu Yen signed an MoU with Hoa Phat to explore investment opportunities in three projects - Bai Goc Port with estimated investment capital of about VND24 trillion ($924.71 million), Hoa Tam IP at VND13.3 trillion ($512.45 million), and Hoa Phat Integrated Steel Complex within Hoa Tam IP (VND86 trillion or $3.31 billion).

In April 2024, the Phu Yen Economic Zone Authority said that Hoa Phat had set up three new subsidiaries to carry out these projects.

Hoa Tam Industrial Park Infrastructure Development JSC is one of the subsidiaries. Founded on July 9, 2024, the company had a charter capital of VND680 billion ($26.2 million) by the year-end.

The two others are Bai Goc Port Phu Yen JSC and Hoa Phat Phu Yen Steel JSC, both established on December 26, 2024.

All the three companies are headquartered in Hoa Tam commune, Dong Hoa township, Phu Yen province.

The authority said it had received a proposal to develop the first phase of the Hoa Tam IP from Hoa Tam Industrial Park Infrastructure Development JSC. Meanwhile, Bai Goc Port Phu Yen JSC proposed the Bai Goc Port project in Hoa Tam commune.

Planned for completion by 2030, the port will span 156 hectares of land and 214 hectares of water, featuring 13 wharves totaling 3,589 meters in length, a 240-meter-wide navigational channel, and a 2,287-meter-long breakwater. It can accommodate ships of up to 220,000 DWT, with an annual throughput capacity of 30-50 million tons.

The project is included in Vietnam’s national port development plan for 2021-2030, with a vision to 2050.

The company is conducting topographical, geological, and hydrological surveys to prepare a formal investment proposal once planning conditions are met.

The third project is the Hoa Phat Integrated Steel Complex, developed by Hoa Phat Phu Yen Steel JSC. Located in the Hoa Tam IP, the complex will span 520 hectares and have an annual production capacity of 6 million tons.

It will be carried out in two phases, each with an annual capacity of 3 million tons. Construction is expected to take 36 months after investment approval and land allocation.

As the secondary project within the Hoa Tam IP, its implementation will align with the development schedule of the industrial park’s infrastructure.

In Q1/2025, Hoa Phat Group’s revenue reached VND37 trillion ($1.42 billion), an increase of 19% over the same period last year. Net profit was VND3.3 trillion ($127.15 million), up 15%. This is the highest quarterly profit since Q2/2022.

In 2025, the steelmaker targets to achieve a revenue of VND170 trillion ($6.55 billion), up about 21% compared to 2024's actual figure, and a record high. The target for 2025 profit after tax is VND15 trillion ($577.95 million), up nearly 25% compared to 2024.

Hoa Phat Group, listed on the Ho Chi Minh Stock Exchange (HoSE) as HPG, closed Friday at VND25,600 ($0.99) per share.