VinMetal Ha Tinh: VND 80 Trillion Steel Complex vs Hoa Phat Dung Quat 2

Overview

Vingroup’s VinMetal Ha Tinh steel complex has secured investment registration for a VND 79,986.5 billion (about USD 3.2 billion) project spanning roughly 461 hectares in the Vung Ang Economic Zone, Ha Tinh. The site is larger in area than Hoa Phat’s Dung Quat 2 complex, and the project targets first steel by early 2027 with a product mix centred on hot-rolled coil (HRC), high-strength and specialty alloy steels for electric vehicles and high-speed transport infrastructure. For HPG, listed on HOSE, the development introduces a new, well-capitalised domestic entrant into the flat-steel segment that anchors Hoa Phat’s earnings.

Key Facts

• Total registered investment: VND 79,986.5 billion, per the investment registration certificate issued in February 2026.
• Land area: approximately 461 ha within Vinhomes Vung Ang Industrial Park; detailed 1/500 planning approved in July 2026 at about 459.68 ha.
• Hoa Phat Dung Quat 2 occupies roughly 280 ha with about VND 85,000 billion of investment, making VinMetal about 1.6x larger by site area.
• Industrial production and warehouse land exceeds 2.63 million sqm; greenery and water features account for about 1.31 million sqm.
• Projected employment: more than 5,000 workers once operational.
• Technology partner: Primetals Technologies, contracted in late June for integrated ironmaking, steelmaking, continuous casting and rolling technology, including 200-tonne BOF converters and HRC hot rolling lines.
• Target first steel: early 2027; recruitment for the construction steel rolling mill began in September 2026.

What Happened

According to the investment registration certificate granted in February 2026, VinMetal Ha Tinh is being developed inside the Vinhomes Vung Ang Industrial Park in the Vung Ang Economic Zone. The July 2026 approval of the 1/500 detailed plan at approximately 459.68 ha cleared the way for subsequent construction steps. The Ha Tinh Economic Zone Authority is overseeing the project, and VinMetal has said it is accelerating the integrated iron and steel complex toward first steel in early 2027.

The product strategy centres on HRC, hot-rolled steel, high-strength steel and specialty alloy grades, alongside commercial construction steel. VinMetal selected Primetals Technologies as overall technology integrator for the full chain from ironmaking through steelmaking to finished rolling, and in late June signed a contract covering steelmaking, continuous casting and rolling equipment. Vingroup states the complex will produce both long and flat steel using green and digitalised technology, and VinMetal has said it will apply a Zero Liquid Discharge model. The filing does not disclose a construction completion date beyond the first-steel target.

Market Context

HPG closed at 20,800 on 24 September 2026 on HOSE. Hoa Phat is Vietnam’s largest listed steel producer and the dominant domestic supplier of HRC, the same product category VinMetal is targeting. Dung Quat 2, Hoa Phat’s own expansion, remains the benchmark large-scale flat-steel project in Vietnam at roughly VND 85,000 billion and about 280 ha. VinMetal’s larger footprint and comparable capital scale place it alongside Dung Quat 2 as one of the country’s biggest steel investments, arriving as Vietnamese steel demand is increasingly shaped by infrastructure, electrification and export-oriented manufacturing.

Strategic Significance

For long-term HPG holders, the key question is not near-term volume but the durability of domestic HRC pricing power. Hoa Phat has invested heavily in Dung Quat 2 to capture import substitution in flat steel, particularly as EV and high-speed rail programmes lift demand for higher-grade product. VinMetal targets precisely those grades, with Primetals technology and Vingroup’s balance sheet behind it, and its 2027 first-steel timeline overlaps with the ramp-up window of Hoa Phat’s own capacity. A credible second domestic flat-steel producer would compress the pricing premium Hoa Phat has historically earned on HRC and could shift contract negotiations with automakers, appliance makers and infrastructure contractors. The offsetting factor is demand growth: if EV manufacturing and high-speed rail build-out scale as planned, the market may absorb both suppliers without a sustained price war.

What to Watch

• VinMetal construction milestones and any confirmation of the early-2027 first-steel schedule.
• HPG’s quarterly disclosures on HRC output, domestic market share and Dung Quat 2 utilisation.
• Domestic HRC price spreads and import volumes from China, which set the effective ceiling on local pricing.
• Further VinMetal procurement contracts, including raw material supply and any additional financing arrangements.
• Vietnam EV production and high-speed rail tender timelines, which determine the pace of high-grade steel demand.