Vietnam’s Hoa Phat Group has announced that it is accelerating construction and equipment installation at its rail and special steel production plant in the Dung Quat Economic Zone, as it moves forward with its expansion into high-value steel products.
By the end of the first quarter of 2026, the project had reached approximately 35 percent completion, with construction entering its peak phase. The total investment in the project exceeds VND 10 trillion (approximately $380 million).
Hoa Phat plans to begin installing electromechanical equipment lines from June 2026, with support from Germany-based SMS Group.
First rail production targeted for 2027
The company aims to produce its first rail products in the first quarter of 2027, aligning with Vietnam’s infrastructure development plans. The facility is designed with an annual capacity of 700,000 mt, focusing on high-quality and special steel products.
The plant will manufacture:
- high-speed railway rails,
- urban rail steel,
- crane rails,
- structural steel products such as U, I, H and V sections.
The products are expected to meet international standards, including European, Japanese and Chinese specifications.
Strategic shift toward high-value steel
The project reflects Hoa Phat’s strategy to expand into high-grade and specialty steel segments, supporting industries such as transport infrastructure, mechanical engineering, oil and gas, and energy.
