Hoa Phat's railway and special steel factory project reaches nearly 70% of progress

As of September 2026, construction of the Hoa Phat Dung Quat Railway and Special Steel Factory was nearly 70% complete. The project has been accelerating, with a focus on completing the plant buildings and installing production equipment. 

Hoa Phat's railway and special steel factory project reaches nearly 70% of progress

The Hoa Phat Dung Quat Railway and Special Steel Factory has a designed capacity of 700,000 tonnes a year and total investment of more than VND 10 trillion. The factory will feature a production line supplied by Germany's SMS group, including flexible, high-precision four-high rolling mill stands designed to meet the world's most stringent standards. 

The factory will be equipped with one of the world's most advanced production lines, supplied by Germany's SMS group, to ensure consistent product quality in accordance with international standards for high-speed rail

Nguyen Minh Duc, Deputy Head of the Project Management Department, said: “We are carrying out multiple work packages concurrently, including site works, plant structures, internal transport roads, overhead cranes, electrical and water systems, and supporting infrastructure. Once an area is ready, it will be handed over for equipment installation immediately. This approach allows us to make the best use of available space and manpower while keeping the project on schedule. One of our key priorities is to ensure that all necessary conditions are in place to receive the production equipment supplied by SMS group”. 

From October 2026, the Hoa Phat Dung Quat Railway and Special Steel Factory is expected to enter the peak phase of equipment delivery, installation, adjustment and commissioning, with supervision and technical support from SMS specialists.

Alongside efforts to accelerate construction, Hoa Phat is working with SMS group and the School of Materials Science and Engineering at Hanoi University of Science and Technology to train engineers and technical personnel. The programme will enable the team to absorb the transferred technology quickly, gain full command of the production process and ensure stable plant operations. Meanwhile, Hoa Phat Dung Quat Railway and Special Steel Joint Stock Company is strengthening its organisational structure by assigning and appointing managers to suitable positions. 

The plant's high-tech steel product portfolio will include rails for high-speed and urban railways, as well as crane rails. It will also produce U, I, H and V-shaped structural steel sections and a range of other special steels. 

Using steel made from low-impurity iron ore, Hoa Phat will be able to produce rails up to 100 metres long, with excellent straightness, flatness and hardness. Laser measurement systems will be used to control rail geometry with high precision, while ultrasonic testing will detect internal defects, ensuring product quality before the rails are released to the market. 

The products will comply with some of the world's most stringent standards, including EN 13674 (Europe), JIS E1101 (Japan), GB/T 2585 (China) and TB/T 2344 (China), meeting demanding technical requirements for transport infrastructure and heavy industry. 

Hoa Phat expects to roll its first high-speed railway rails in the first quarter of 2027, in time to supply Vietnam's key railway projects and demonstrate its capability to manufacture high-value-added steel products.