Vietnam's steel giant Hoa Phat to grow by 15% annually: chairman

Vietnam’s leading steel maker Hoa Phat will grow by 15% per year, in line with the country's goal of achieving double-digit growth from 2025-2030, said chairman Tran Dinh Long.

Reporting to Prime Minister Pham Minh Chinh during his working visit on Sunday to the Hoa Phat Dung Quat Iron and Steel Complex in Dung Quat Economic Zone, Quang Ngai province, Long said Hoa Phat has invested $7 billion in the zone so far.

Of this, over VND171 trillion ($6.74 billion) has been poured into the Hoa Phat Dung Quat and Hoa Phat Dung Quat 2 iron and steel complexes.

According to 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.

With large investments in production, the group is focusing on manufacturing high-quality steel products to replace imports.

"Hoa Phat is confident in its ability to research and produce rail steel, steel for train wheel axles, and high-speed train rails as suggested by the Prime Minister, as well as other high-quality steel for national key projects and global exports," the chairman noted.

The group's leader also proposed the government take appropriate measures to protect domestic manufacturers.

Long reported that from 2017 to 2024, Hoa Phat Dung Quat contributed nearly VND35 trillion ($1.38 billion) to the state budget.

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.

Prime Minister Pham Minh Chinh said that as Vietnam pursues industrialization and modernization, the country requires strong foundational industries such as steel, chemicals, energy, and oil and gas.

"Hoa Phat plays a key role in the development of the domestic steel industry and the broader industrialization and modernization efforts of the country.

"We cannot ignore the steel industry, and it must develop with digitization and automation. Having companies like Hoa Phat will give us more strategic control," Chinh added.

The Prime Minister asked Hoa Phat to continue researching the production of high-quality steel, especially for making rails for the North-South high-speed railway, routes to China, and metro lines in the coming years.

Hoa Phat is prioritizing completing and putting into operation the Hoa Phat Dung Quat 2 Iron and Steel Complex. The goal is to be self-sufficient in production for key national projects, with particular focus on the North-South high-speed railway project in the 2026-2030 period.

When the Hoa Phat Dung Quat 2 is completed by the end of 2025, the group’s steel production capacity will reach 15 million tons per year, which is expected to place Hoa Phat among the top 30 largest steel companies in the world.