Vietnam’s steel giant Hoa Phat eyes railway track steel project

Hoa Phat Dung Quat Steel JSC, a member of steel heavyweight Hoa Phat Group, has proposed to invest in a project producing high-quality steel for urban and high-speed railway tracks in central Vietnam.

The project, located in Quang Ngai province's Dung Quat Economic Zone, is expected to be implemented between 2025 and 2027, said Tran Phuoc Hien, Vice Chairman of the provincial People's Committee.

At a recent meeting with local leaders, a representative from Hoa Phat said that the proposed project site is situated near the existing Hoa Phat Dung Quat Steel Production Complex in Binh Thuan commune, which offers convenient connections to regional infrastructure, especially the seaport.

For the first phase of the project, which is slated to begin in 2025, Hoa Phat requires approximately 42.03 hectares of land.

Hoa Phat is already involved in two steel production complexes and several satellite projects at the Dung Quat Economic Zone. The Hoa Phat Dung Quat Steel Integrated Complex 1 (Dung Quat 1), with an annual production capacity of 6 million tons, has been operational since 2021.

The Hoa Phat Dung Quat Steel Integrated Complex 2 (Dung Quat 2), designed to produce 5.6 million tons of high-quality hot-rolled steel annually, is expected to be fully operational by 2025.

In line with the Prime Minister’s directions, Hoa Phat plans to focus on deep processing and producing high-quality steel products for both domestic and export markets during the 2025-2030 period. The group aims to support major national projects, with a particular emphasis on manufacturing steel for high-speed railway tracks.

After reviewing Hoa Phat's proposal, Hien highlighted the significance of the group’s deep processing and high-quality steel production projects. He instructed the provincial authorities to promptly address any obstacles to ensure the project proceeds smoothly and on time.

Additionally, he requested Hoa Phat Dung Quat Steel to provide a detailed timeline for each investment phase, enabling the province to proactively handle related matters throughout the project’s implementation.

Hoa Phat Dung Quat Steel, established in February 2017, is the largest subsidiary of Hoa Phat Group. It is responsible for the construction and operation of the Hoa Phat Dung Quat Steel Production Complex in the Dung Quat Economic Zone.

From 2017 to 2024, Hoa Phat Dung Quat contributed nearly VND35 trillion ($1.38 billion) to the state budget, according to Hoa Phat chairman Tran Dinh Long.

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

Hoa Phat’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 Monday at VND27,150 ($1.06) per share.