According to local media reports, Vietnam will need about four million tons of railway rails between 2026 and 2030 to support a number of major railway infrastructure projects planned for the coming years, which will create significant opportunities for the domestic steel industry, according to local media reports.
Demand will be driven by the country's ambitious railway development program, including the North-South high-speed railway and new international railway routes connecting Vietnam with neighboring countries.
The planned railway projects, which will require about four million tons of rail steel, provide an opportunity for Vietnamese steel producers to participate in the supply of materials for strategic national infrastructure.
According to a report by MB Securities (MBS), local steel companies Hoa Phat and VinMetal will be the potential main beneficiaries due to their ability to produce rail steel. Hoa Phat Group is building a factory for the production of railway rails and special steel in the Dung Kwat Economic Zone in Quang Ngai Province with an annual production capacity of 700,000 tons.
The company plans to begin commercial production of high-speed rail rails in the first quarter of 2027. Production is expected to reach about 400,000 tons in 2027 before the plant reaches full annual capacity in 2027. 700,000 tons, starting in 2028.
At the same time, Vinmetal is also moving forward in the production of railway rails in partnership with Formosa Ha Tinh Steel. The projected annual capacity of the proposed integrated steel project will be 5 million tons, with the first production for railway rails expected by the end of 2026. Vinmetal's rail production is projected to grow from about 600,000 tons in 2027 to about 3.5 million tons by 2030.
Damla TyukenmezEditorI graduated from the Department of English Language and Literature at Kocaeli University. Since 2020, I have been creating content dedicated to the steel industry. At SteelOrbis, I write industry news on a wide range of topics, including EU and UK trade measures, regulatory changes, use of quotas, as well as statements and opinions from organizations representing the Turkish steel sector.
