Vietnam will require an estimated four million mt of railway rails between 2026 and 2030 to support a series of major railway infrastructure projects planned over the coming years, creating significant opportunities for the domestic steel industry, according to local media reports.
The demand will be driven by the country's ambitious railway development program, including the North-South high-speed railway and new international rail links connecting Vietnam with neighboring countries.
The planned railway projects which will require approximately four million mt of rail steel presents an opportunity for Vietnamese steelmakers to participate in supplying materials for strategic national infrastructure.
According to an MB Securities (MBS) report, local steelmakers Hoa Phat and VinMetal will be potential major beneficiaries due to their ability to produce rail steel. Hoa Phat Group, is building a railway rail and special steel plant in the Dung Quat Economic Zone in Quang Ngai Province with an annual production capacity of 700,000 mt.
The company aims to start commercial production of high-speed railway rails in the first quarter of 2027. Production is expected to total about 400,000 mt in 2027 before reaching the plant's full annual capacity of 700,000 mt from 2028 onward.
At the same time, Vinmetal is also moving forward with railway rail production in partnership with Formosa Ha Tinh Steel. The proposed integrated steel project will have a designed annual capacity of 5 million mt, with the first railway rail products expected by the end of 2026. Vinmetal's railway rail output is projected to rise from around 600,000 mt in 2027 to approximately 3.5 million mt by 2030.
