The Rail and Special Steel Manufacturing Plant, with a designed capacity of 700,000 tonnes per year, will be built on nearly 15 hectares at the eastern zone of the Dung Quat Economic Zone in central Quang Ngai province. The project forms part of the conglomerate’s strategy to expand into high-tech and high-value steel products.

The plant will use advanced European technology supplied by Germany’s SMS group and UK-based Primetals, including a four-high rolling mill system designed to meet international standards for high-speed railways. Its major products will be high-speed rail tracks, urban railway rails, crane rails and various special steel items such as U, I, H and V profiles.

Hoa Phat said its first high-speed rail products are expected to be rolled out in 2027, making it the first company in Southeast Asia capable of producing steel rails for high-speed railways. The rails, produced from low-impurity iron ore, can reach lengths of up to 100 metres and will be monitored using laser geometry control and ultrasonic testing to detect internal defects.

The investment comes as Vietnam steps up preparations for major national railway projects. The government earlier this month issued a decree introducing special mechanisms to support science and technology development for key railway infrastructure, aimed at increasing domestic participation and reducing reliance on imports.

Hoa Phat signed a technology and equipment supply contract with SMS group in May 2025 and has been training engineers and managers in Europe and other countries with advanced high-speed rail systems to prepare for technology transfer and plant operations.

Construction contractors will begin work immediately following the groundbreaking ceremony, with equipment installation scheduled to start in mid-2026. The group aims to produce its first rail products a year ahead of the original approved schedule.

Hoa Phat is the leading industrial manufacturing group in Vietnam. Originating as a construction machine and equipment trading company in August 1992, Hoa Phat has gradually expanded its business to trading and production in various sectors such as furniture, steel pipe, steel, refrigeration, real estate and agriculture. With the capacity of 15 million tonnes of crude steel per year, Hoa Phat is the largest steel producer in the Southeast Asia.

Gov’t meets with firms seeking to invest in North–South high-speed railway

VOV.VN - Permanent Deputy Prime Minister Nguyen Hoa Bình and Deputy Prime Minister Tran Hong Ha held a working session on November 27 with representatives of several ministries and five firms expressing interest in the North–South high-speed railway project.