Hoa Phat Group has commenced construction on a VND14 trillion high-grade steel and railway track plant in the Dung Quat 2 Industrial Zone, aiming to meet the country’s growing infrastructure needs. Chairman Tran Dinh Long announced the project during the firm’s 2025 AGM, highlighting it as a milestone in producing steel types previously unavailable in Vietnam, particularly railway rails.
The facility will incorporate an integrated casting and rolling line from Primetals Technologies with an annual capacity of 500,000 tonnes. Production is expected to begin in late 2026. Long emphasised Hoa Phat’s strategy to become a key supplier for national railway projects, backed by favourable policy momentum and rising demand for domestically sourced construction materials.
The company is also adapting its financial strategy, switching to a 20 per cent dividend payout entirely in shares to maintain liquidity amid global uncertainties. With a target of VND170 trillion in 2025 revenue and VND15 trillion in profit, Hoa Phat is leveraging strong Q1 results and a robust export base—31 per cent of total revenue—across over 40 countries.