Steel maker Hoa Sen to pour $90 mln into central Vietnam factory expansion

Hoa Sen Nhon Hoi-Binh Dinh One Member LLC, a subsidiary of Hoa Sen Group, will invest over VND2.3 trillion (over $90 million) to expand its steel plant in the south-central province of Binh Dinh.

As approved in-principle by the Binh Dinh Economic Zone Administration (BEZA) recently, the existing 21.84 hectare Hoa Sen Nhon Hoi-Binh Dinh steel plant in Nhon Hoi Economic Zone, Quy Nhon town will be expanded by approximately 9.1 hectares.

Aiming to produce galvanized steel, color-coated steel, and cold-rolled steel, the project will feature one hot-dip galvanizing/aluminum-zinc alloy coating line with a capacity of 350,000 tons per year; one cold-rolling line capable of producing 350,000 tons per year; one shaft grinding machine with a capacity of 10 shafts per day; and one 110/22kV transformer station with a capacity of 63 MVA.

Its operation duration is from the date of in-principle approval until March 21, 2066.

Hoa Sen Nhon Hoi-Binh Dinh One Member LLC, based in Quy Nhon town, was granted the first investment registration certificate on November 26, 2015, and saw the certificate's ninth amendment on November 1, 2023.

In October 2017, Hoa Sen Group, listed on the Ho Chi Minh Stock Exchange as HSG, held the inauguration of phase 1 and the groundbreaking ceremony for phase 2 of the Hoa Sen Nhon Hoi-Binh Dinh steel plant, which has a total investment of over VND2 trillion ($78.3 million).

Its first phase includes one galvanizing/aluminum-zinc alloy coating line with a capacity of 180,000 tons per year, which has been operational since September 2017; one color-coating line with a capacity of 45,000 tons per year, operational since June 2017; and one 100,000-ton slitting line, operational since May 2017.

The second phase was inaugurated in 2019, comprising one pickling line with a capacity of 800,000 tons per year; one 350,000-ton cold-rolling line; one galvanizing/aluminum-zinc alloy coating line with a capacity of 250,000 tons per year; one 150,000-ton color-coating line; and one acid regeneration line with a capacity of 5,000 liters per hour.

Attracting at least $470 mln to Nhon Hoi EZ

The Binh Dinh Economic Zone Administration also issued an investment registration certificate for a joint venture between China’s Hebei Astral Imp. & Exp. Co., Ltd and Binh Duong-based Top Asian Vietnam Co., Ltd. to produce high-end wood products, HDPE interior and exterior furniture, and materials for export interior products.

The project covers an area of nearly 6.3 hectares at the Nhon Hoi Industrial Park - Zone A within Nhon Hoi Economic Zone, with a production scale of 150 containers per month.

Its total investment is over VND254.7 billion ($10 million). The project's operation period is 50 years from the issuance date of the first investment registration certificate.

In 2025, Saigon-Nhon Hoi Industrial Park JSC targets attracting a maximum of 10 projects to the Nhon Hoi Industrial Park - Zone A. The company is focusing on drawing investors planning to relocate production from China to Vietnam, especially those from Singapore, Japan, South Korea, and European countries.

The firm is also luring Vietnamese investors who intend to expand their production scale or cooperate with foreign partners to establish new production facilities in Binh Dinh.

According to the BEZA, in 2025, the unit is tasked with attracting 49 new projects, with a minimum total registered investment of VND12 trillion ($470 million).