Hoa Phat aims for 15% annual growth through 2030, aligning with Government’s growth targets

On February 9, 2025, during a visit to the central province of Quảng Ngãi, Prime Minister Pham Minh Chinh visited the Hoa Phat Dung Quat Iron and Steel Complex. The Prime Minister conveyed the regards and wishes from Party General Secretary Tô Lâm to the group’s staff, and noted confidence that it will maintain double-digit growth in the coming years, in line with the Government’s target, especially starting from 2025, creating momentum for the country to enter a new era of rising to become a rich, strong and civilized country.

Prime Minister Pham Minh Chinh requested that Hoa Phat explores the possibility of producing steel rails for the North-South high-speed railway project

The working delegation accompanying Prime Minister Pham Minh Chinh included Mr. Nguyen Chi Dung, Minister of Planning and Investment; Mr. Tran Hong Minh, Minister of Transport; Mr. Nguyen Sy Hiep, Deputy Head of the Government Office; and representatives from central ministries and agencies. From Quang Ngai province, the delegation was joined by Ms. Bui Thi Quynh Van, Secretary of the Provincial Party Committee and Chairwoman of the Provincial People's Council; Mr. Dang Ngoc Huy, Standing Deputy Secretary of the Provincial Party Committee; Mr. Nguyen Hoang Giang, Chairman of the Provincial People's Committee; as well as leaders from other local departments and agencies.

Prime Minister Pham Minh Chinh (fourth from left) congratulates and gives gifts to officers and employees of Hoa Phat Group

At Hoa Phat Group, the delegation was warmly welcomed by Mr. Tran Dinh Long, Chairman of the Board of Directors; Ms. Tran Thi Thu Hien, Deputy General Director; Mr. Mai Van Ha, Director of Hoa Phat Dung Quat Steel Joint Stock Company; as well as members of the Board of Directors and department heads/deputies.

In his opening remarks, the Prime Minister stated: ''Today, as part of my inspection tour, I had the opportunity to see, hear, and experience firsthand the impressive progress Hoa Phat Group has made over the past seven years in the Dung Quat area. I feel deeply admiring, proud, and full of confidence in the capabilities of Vietnamese enterprises. With over US$7 billion invested, Hoa Phat has created jobs for tens of thousands of workers, which is truly commendable ''.

The Prime Minister's working delegation visits Hoa Phat Dung Quat specialized port

Prime Minister Pham Minh Chinh recognized and praised Hoa Phat's achievements following eight years of investment in Quang Ngai. He also expressed his gratitude for the strong support and cooperation from local authorities, which has ensured the smooth implementation of Hoa Phat's projects.

The Prime Minister emphasized that without foundational industries like steel and chemicals, Vietnam will remain passive in its efforts to implement industrialization and modernization strategies. He stressed the necessity of developing the steel industry, with a focus on digitalization and automation. With companies like Hoa Phat, the country will be better positioned to take a more proactive approach to its industrial strategy.

The Prime Minister also urged Hoa Phat to continue its efforts in researching and producing high-quality steel, particularly for the North-South high-speed railway, railways connecting with China, and urban railways in the near future.

Prime Minister Pham Minh Chinh and the working delegation visit the HRC2 Factory

Acknowledging the passion, enthusiasm, and dedication of Chairman Tran Dinh Long, the Prime Minister urged Hoa Phat to continue its steel rail production in line with the Party’s guidelines, policies, and state laws. He assured that both the Party and the State would pay close attention to and create favorable conditions for Hoa Phat, as well as for other domestic enterprises to grow and develop.

Ms. Bui Thi Quynh Van, Secretary of the Provincial Party Committee and Chairwoman of the Provincial People's Council, remarked: ''Quang Ngai Province is fully committed to supporting Hoa Phat Group, providing all necessary assistance to ensure the construction and development of the factory proceed as planned. The province will continue to support Hoa Phat’s efforts to expand production and will work to quickly secure sites for other projects, allowing Hoa Phat to deploy its high-quality steel production plans. We view supporting Hoa Phat as supporting the overall development of the province, and the Provincial Leadership and Standing Committee will continue to provide their full support''.

Chairman Tran Dinh Long reported to the Prime Minister and provincial leaders, stating: ''Hoa Phat is currently the leading steel manufacturer in Vietnam, exporting steel to 40 countries and territories. With significant investments in production, we are focusing on producing high-quality steel to reduce imports. Hoa Phat is committed to achieving 15 per cent annual growth, in line with the government’s double-digit growth target for the 2025-2030 period ''.

 Chairman Tran Dinh Long said Hoa Phat will grow 15 per cent annually from now until 2030, responding to the Government's double-digit growth target.

During the meeting, Chairman Tran Dinh Long expressed his sincere gratitude to the Government, particularly the Ministry of Industry and Trade, as well as Quang Ngai province, for creating the best possible conditions for Hoa Phat Group to swiftly complete its US$7 billion project in the Dung Quat Economic Zone. A project of this scale would typically take at least 10 years to complete in foreign countries, but Hoa Phat managed to finish it in just over 7 years. Beyond the financial investment, Hoa Phat's ability to act proactively, along with the support and removal of obstacles by the ministries and Quang Ngai province, were key factors in enabling the company to succeed.

Hoa Phat has invested $7 billion in the Dung Quat Economic Zone, with a focus on the Hoa Phat Dung Quat Iron and Steel Complex and the Hoa Phat Dung Quat 2 Iron and Steel Complex, with a total investment of over VND171 trillion.

"With our current capacity, the group is focusing on producing high-quality steel to help reduce imports. Hoa Phat Group is confident in its ability to produce rail steel, steel for train axles, and steel for high-speed trains as requested by the Prime Minister, as well as high-quality steel for key national projects and exports",  Chairman Tran Dinh Long emphasized. He went on to commit: "In accepting the Prime Minister's task to produce steel for the high-speed railway project, we promise, on our honor, to meet four key requirements: quality, quantity, timely delivery, and pricing that will be lower than import prices."

The group’s leadership also suggested that the Government take measures to protect domestic manufacturers. "Whatever domestic enterprises can handle, we hope the State will assign those tasks to them. Only by doing so can we nurture large enterprises," Mr. Tran Dinh Long remarked. Additionally, Hoa Phat’s leaders made two key proposals: First, they urged the Government and Quang Ngai provincial leaders to expedite land allocation, allowing the group to begin the high-speed railway project for Lao Cai, Quang Ninh, and Hai Phong on schedule. Second, they suggested the Government explore the use of domestic ore sources to replace imports, preventing the waste of resources. Hoa Phat currently imports 20 million tons of ore annually, and after completing its Phu Yen project, it will need to import an additional 10 million tons. With ore priced at $100 per ton, this amounts to roughly $3 billion in imports each year.

Since the project began in 2017 and up until 2024, the Hoa Phat Dung Quat Steel Complex has contributed nearly VND35 trillion to the State budget. The company's projects in the Dung Quat Economic Zone have created jobs for approximately 17,000 direct workers, over 80 per cent of whom are local, in addition to tens of thousands of workers employed by Hoa Phat’s contractors and partners.

 

Hoa Phat's projects in the Dung Quat Economic Zone have generated employment for approximately 17,000 direct workers, with over 80 per cent of them being local. Additionally, tens of thousands of workers are employed by Hoa Phat’s contractors and partners.

Additionally, Hoa Phat Group is actively contributing to social welfare in Quang Ngai Province. In response to the Government's initiative to eliminate temporary and dilapidated housing, the Group has supported the construction of over 1,500 homes for disadvantaged families nationwide, with Quang Ngai Province alone benefiting from VND30 billion, which funded 600 homes. The group also engages in a variety of other charitable activities, including sponsoring school construction, supporting orphans, funding heart surgeries for underprivileged children, and distributing Tet (Lunar New Year) gifts to the poor.

Currently, Hoa Phat's priority is to complete and fully operate the Hoa Phat Dung Quat 2 Iron and Steel Complex. This will ensure operational stability while continuing to invest in the deep processing of high-quality steel products in the Dung Quat Economic Zone, with the goal of becoming self-sufficient in production to support key national projects. A primary focus is on the Investment Project to develop a high-speed railway along the North-South axis from 2026 to 2030.

Once the Hoa Phat Dung Quat 2 Iron and Steel Complex is completed by the end of 2025, the group’s steel production capacity will reach 15 million tons per year, positioning Hoa Phat Group among the top 30 largest steel producers in the world.

At the conclusion of the meeting, Prime Minister Pham Minh Chinh, on behalf of the delegation, expressed his hopes for Hoa Phat’s continued growth this year, aiming for a 15-16 per cent increase compared to last year, in line with the country’s growth momentum. He concluded with a wish for Hoa Phat to thrive, saying, ''May Hoa Phat continue to grow and prosper''.

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