Vietnam’s largest steelmaker Hoa Phat Group has announced that in August 2025 it produced 953,000 mt of crude steel, averaging 31,800 mt per day. This represents a 34.0 percent increase year on year. The company now expects to raise its daily crude steel output to 40,000 mt from the fourth quarter of 2025, ensuring stable supply of hot rolled coil (HRC), construction steel and high-quality steel grades.
Currently, 75 percent of Hoa Phat’s crude steel comes from the Dung Quat Iron and Steel Complex, with the remainder from the Hai Duong Complex and Hung Yen Rolling Mill. During the period between the second quarter and September this year, blast furnaces No. 1 and No. 2 of the Dung Quat 2 project were commissioned, raising Dung Quat’s output capacity to 30,000 mt per day.
Closed-loop production chain
Hoa Phat follows a closed production model: molten pig iron from blast furnaces is refined in oxygen converters to remove impurities before being cast into billets for construction steel or slabs for HRC production. This integration ensures efficiency, quality control and cost competitiveness.
Expanding into high-end HRC
The new Dung Quat 2 facilities will not only produce standard HRC, but also high-end HRC used in automotive, shipbuilding, petrochemical, energy and household appliance industries.
Performance in H1 2025
In the first half of 2025, Hoa Phat produced 5.1 million mt of crude steel, a 17.0 percent increase year on year. Sales of steel products, including HRC, construction steel, high-quality steel and billets, totaled 5 million mt, up by 23.0 percent year on year. Notably, HRC sales jumped by 42.0 percent compared to H1 2024.
Strategic positioning for 2026 and beyond
By 2026, Hoa Phat’s total capacity will reach 16 million mt per year, including 9 million mt of HRC and high-quality steel. This capacity will allow the company to meet both Vietnam’s domestic demand and serve export markets, strengthening its role as a leading steel supplier in Asia.