On 19 December 2025, the Quang Ngai Province People’s Committee, in cooperation with Hoa Phat Group, a leading Vietnamese industrial group with a core focus on steel production, held a groundbreaking ceremony for the Hoa Phat Dung Quat Railway Rail and Special Steel Manufacturing Plant. At the same time, three other major projects also commenced construction in the province, namely: (1) the Nam Tra Khuc River Basin stormwater and wastewater collection and treatment system; (2) the upgrading and expansion of transport infrastructure in the Dung Quat Economic Zone; and (3) the Quang Ngai-Hoai Nhon Expressway. These projects are among the 234 large-scale projects marking the 14th National Party Congress of the Communist Party of Vietnam.
The project has a total investment of approximately 379.9 million USD and is located in the Eastern Industrial Zone of the Dung Quat Economic Zone. Designed for an operational term of 50 years, the plant will have an annual capacity of 700,000 tonnes. Its production line is equipped with advanced technologies supplied by SMS Group (Germany) and Primetals Technologies (United Kingdom), two global leaders in metallurgical plant engineering, ensuring uniform product quality in compliance with international high-speed railway standards.
Construction activities commenced immediately following the groundbreaking ceremony. Equipment installation and commissioning are scheduled to begin in mid-2026, with the first railway rail products expected to be rolled out in 2027.
The plant will manufacture a range of high-value steel products, including high-speed railway rails, urban railway rails, crane rails, and special steel sections. The introduction of high-speed railway rail products in 2027 will position Hoa Phat as the first and only enterprise in Southeast Asia capable of producing this category of steel.
Once operational, the project is expected to complete the steel production value chain at the Dung Quat Economic Zone and meet domestic demand, particularly for large-scale transport infrastructure projects such as the North-South high-speed railway and the Hanoi-Lao Cai-Hai Phong corridor. By strengthening domestic supply capacity, the project will help reduce import dependence, advance technological capabilities in the steel industry, and support the transition toward lower-emission green steel production.
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References: 1. Voice of Vietnam, 16 December 2025
2. Dai Doan Ket, 19 December 2025
3. Cong thong tin dien tu tinh Quang Ngai, 19 December 2025
