Vietnam's steel heavyweight Hoa Phat to start operating $3.34 bln factory in 2025 

Vietnam’s leading steelmaker Hoa Phat will start operating its VND85 trillion ($3.34 billion) steel plant in the central province of Quang Ngai in 2025.

Construction of the Hoa Phat Dung Quat 2 Iron and Steel Production Complex started in Q1/2022. Covering 280 hectares, it is designed to produce 5.6 million tons of high-quality hot-rolled coil (HRC) steel annually, using advanced European technology.

Products will be supplied to industries such as automotive, low-carbon steel manufacturing, canned food production, household appliances, steel structures, and high-strength, weather-resistant container shells.

The first phase of the project is nearing completion, with equipment installation finalized and trial operations scheduled to begin in early Q1/2025. The second phase is expected to be operational by late 2025, according to a company release.

Once fully operational, Hoa Phat’s crude steel production capacity will increase to 14.5 million tons per year, including 8.6 million tons of high-quality HRC steel. This milestone will position Hoa Phat as a leading steel producer in the region and enhance Vietnam’s presence in the global steel industry.

Hoa Phat's high-quality steel has already been utilized in major projects, including the U.S Embassy Complex in Hanoi. The company’s products have also been exported to countries such as the U.S, Mexico, and Peru.

Domestically, Hoa Phat steel has contributed to critical infrastructure projects, including the Long Thanh airport, Tan Son Nhat airport, the National Exhibition Center (the largest in Southeast Asia), and metro lines in Hanoi and Ho Chi Minh City.

Looking ahead, Hoa Phat, listed on the Ho Chi Minh Stock Exchange as HPG, plans to develop specialized steel products such as high-speed rail steel, electrical engineering steel, steel plates, and shaped steel to meet the demands of the automotive, railway, shipbuilding, and structural processing industries.

Industrial parks development

Hoa Phat’s industrial park (IP) portfolio currently spans over 1,133 hectares, primarily in Hung Yen and Ha Nam provinces.

The Pho Noi A Industrial Park in Hung Yen province boasts a 95% occupancy rate, hosting 164 domestic and international businesses, including major corporations from the U.S, Japan, South Korea, and Europe.

The group is also expanding the Yen My II Industrial Park. Phase two of the expansion has completed site clearance, with nearly 50% of the plots already occupied.

In addition to industrial park development, Hoa Phat is actively working on a 31-hectare social housing project within Yen My II Industrial Park. This initiative aims to address the housing needs of low-income workers while fostering the sustainable development of the industrial park.

The group is advancing investment procedures to develop three new industrial parks.

Pig and chicken farming

A highlight of Hoa Phat's agricultural business in 2024 was the production of 330 million chicken eggs. This figure surpassed the company's record set in 2023 of 300 million eggs.

Hoa Phat's chicken egg distribution network now serves over 100 supermarkets in the northern region and spans across all three regions of Vietnam.

In addition to the Hy-Line Brown super egg chicken breed, Hoa Phat Poultry Company Limited has developed the Hy-Line Sonia pink egg-laying chicken breed with outstanding egg-laying rates, good survival ability, and low feed consumption. This chicken breed originates from Hy-Line International and were imported from the U.S.

In pig farming, the output of market-ready pigs exceeded projections. For example, the Long Ha farm cluster in Binh Phuoc province supplied the market with over 90,000 commercial piglets and nearly 200 premium reserve piglets in 2024. The Australian cattle breeding segment also saw positive developments, with livestock output in 2024 surpassing that of 2023.

Hoa Phat Group, the largest steelmaker in Vietnam by market value, says it earned a net profit of VND9,210 billion ($370 million) in the first three quarters this year, up 140% year-on-year.

The group posted revenues of VND105 trillion ($4.22 billion) in the period, up 23% year-on-year and meeting 75% of the yearly target, it said in a release on October 14

On the stock market, HPG closed Friday at VND26,600 ($1.05) per share.