Hoa Phat (HPG) Doubles Tay Ninh Steel Plant Capacity to 810,000 Tons/Year

Overview

Hoa Phat Group (HPG) has received an environmental permit from the Tay Ninh Department of Agriculture and Environment to double the capacity of its steel plant in Tay Ninh province to 810,000 tons of steel products per year. The permit, valid for seven years, replaces the previous permit issued in late 2025. The expansion comes as HPG reported strong production growth in Q2 2026, with crude steel output rising 48% year-on-year.

Key Facts

• The Tay Ninh plant’s design capacity is now 810,000 tons/year, up from the initial 400,000 tons/year.
• The product mix includes 400,000 tons of galvanized sheet and steel coil, 350,000 tons of black and galvanized steel pipe, and 60,000 tons of hot-dip galvanized pipe.
• The plant covers nearly 147,000 square meters in the expanded Thuan Dao Industrial Park, Long Cang commune, Tay Ninh.
• HPG inaugurated the Tay Ninh pipe plant in April 2026 with a total investment of VND 2,000 billion.
• In Q2 2026, HPG produced over 3.6 million tons of crude steel, up 48% from Q2 2025 and 9% from Q1 2026.
• Sales of construction steel, high-quality steel coil, hot-rolled coil (HRC), and billet reached 3.5 million tons in Q2 2026, up 35% year-on-year.
• In H1 2026, HPG produced nearly 7 million tons of crude steel (+36% YoY) and sold 6.5 million tons of HRC, construction steel, and billet (+32% YoY).

What Happened

The Tay Ninh Department of Agriculture and Environment issued an environmental permit to Hoa Phat Long An Steel Products Joint Stock Company for its steel manufacturing and trading plant in Tay Ninh. The permit, effective for seven years, supersedes the one granted in late 2025. The plant is classified as a Group A project under public investment criteria and Group I under the Environmental Protection Law.

The facility’s production process includes slitting, pickling, cold rolling, and galvanizing for sheet products, as well as manufacturing black steel pipe, galvanized pipe, and hot-dip galvanized pipe with multiple surface treatment steps. The plant’s products are designed to meet international standards such as ASTM, BS EN, and JIS, targeting infrastructure projects and export markets. HPG has previously supplied products to major projects including Long Thanh Airport and Tan Son Nhat T3 Terminal.

Market Context

HPG shares closed at VND 22,500 on July 14, 2026, on the HOSE exchange. The capacity expansion at Tay Ninh aligns with HPG’s strong production momentum, as the group reported a 48% increase in crude steel output in Q2 2026. The Vietnamese steel sector has been benefiting from robust domestic demand and export growth, though competition from Chinese imports remains a risk. HPG’s diversified product portfolio, including construction steel, HRC, and pipes, positions it to capture demand from infrastructure and real estate projects.

Strategic Significance

The doubling of capacity at the Tay Ninh plant enhances HPG’s downstream steel product capabilities, particularly in pipes and galvanized sheets, which are value-added products with higher margins. This expansion supports HPG’s strategy to increase its share in the domestic steel pipe market and boost exports. The investment of VND 2,000 billion underscores HPG’s commitment to scaling up production amid growing demand from infrastructure projects and industrial construction. The permit’s seven-year validity provides operational certainty for long-term planning.

What to Watch

• HPG’s Q3 2026 production and sales data to gauge the impact of the expanded capacity.
• Progress of other HPG capacity expansion projects, including the Dung Quat 2 integrated steel complex.
• Domestic steel demand trends, particularly from infrastructure and real estate sectors.
• Export market conditions, including anti-dumping measures in key markets like the US and EU.
• HPG’s financial results for H2 2026 to assess margin trends and return on invested capital.