Vietnam's Hoa Phat Group said it is accelerating the construction and installation of equipment at its rail and special steel plant in the Dung Quat economic zone, moving forward to expand production of high-value steel products.
By the end of the first quarter of 2026, the project had reached approximately 35 percent completion and construction had entered its peak phase. The total investment in the project exceeds VND 10 trillion (approximately 380 million US dollars).
Hoa Phat plans to begin installing electromechanical equipment lines from June 2026 with the support of the German SMS Group.
First production of rails is planned for 2027
The company plans to produce the first railway products in the first quarter of 2027, which is in line with Vietnam's infrastructure development plans. The plant is designed with an annual capacity of 700,000 tons with a focus on the production of high-quality and specialty steel products.
The plant will produce:
- high-speed railway rails,
- city rail steel,
- crane rails rails,
- structural steel products such as U, I, H and V-sections.
Products are expected to meet international standards, including European, Japanese and Chinese specifications.
Strategic shift towards high quality steel
The project reflects the strategy Hoa Phat to expand into high-quality and specialty steel segments, supporting industries such as transport infrastructure, engineering, oil and gas, and energy.
