Hoa Phat (HPG) Opens VND 2 Trillion Steel Pipe Plant, Boosts Capacity to 1.2M Tons

Overview

Hoa Phat Group (HPG) inaugurated a new VND 2 trillion steel pipe factory in Tay Ninh province on April 18, 2026, raising its total steel pipe capacity to 1.2 million tons per year. The plant is strategically located to serve the southern market and export routes, and achieved record monthly sales of 37,600 tons in March 2026.

Key Facts

• Total investment in the new Tay Ninh plant: VND 2 trillion (approx. USD 80 million).
• The factory covers 15 hectares with an annual design capacity of 400,000 tons.
• HPG’s total steel pipe system capacity now reaches 1.2 million tons/year.
• The plant is equipped with production lines imported from G7 countries.
• A 10 MW rooftop solar system is installed, expected to meet ~50% of the plant’s electricity needs.
• HPG holds approximately 35% of the domestic steel pipe market share.
• Q1 2026 steel pipe sales volume: over 241,000 tons, up 30% YoY; southern region consumed 90,000 tons.
• March 2026 southern sales hit a record 37,600 tons.

What Happened

On April 18, 2026, Hoa Phat Group officially inaugurated its new steel pipe manufacturing facility in Tay Ninh province, located in the expanded Thuan Dao Industrial Park. The ceremony was attended by Chairman Tran Dinh Long, provincial leaders, and partners. The project is part of HPG’s strategy to reposition production closer to key consumption centers in the south and facilitate exports.

The plant focuses on black steel pipes, galvanized pipes, hot-dip galvanized pipes, and large-diameter pipes, adhering to international standards such as ASTM, BS EN, and JIS. HPG’s products have been used in major projects including Long Thanh Airport and Tan Son Nhat T3 Terminal. The company reported that Q1 2026 steel pipe sales reached 241,000 tons, with the southern region accounting for 90,000 tons. In March alone, southern sales hit a record 37,600 tons.

Market Context

HPG shares closed at VND 28 on April 15, 2026, down 1.75% on volume of 27.5 million shares. The stock trades on HOSE. The steel sector has faced headwinds from global oversupply and weak construction demand, but HPG’s expansion into the south and export markets may provide a competitive edge. The new plant’s proximity to Ho Chi Minh City and the Mekong Delta is expected to reduce logistics costs and improve service to southern customers.

Strategic Significance

The Tay Ninh plant strengthens HPG’s position as the dominant domestic steel pipe producer with a 35% market share. By locating production in the south, the company can better serve the region’s infrastructure and real estate demand, while also targeting export markets in Southeast Asia. The integration of a 10 MW solar system aligns with cost-saving and ESG trends. This capacity expansion supports HPG’s long-term strategy to consolidate its leadership in steel pipes and leverage economies of scale.

What to Watch

• Q2 2026 earnings release for HPG, expected in July, to gauge the plant’s initial contribution.
• Monthly steel pipe sales data, particularly southern region volumes, to confirm sustained demand.
• Updates on export orders, especially to ASEAN markets, as the plant targets international customers.
• Any further capacity expansion announcements or new product lines from HPG.
• Steel price trends and input costs (iron ore, coal) that could impact margins.