Vietnam Becomes World's 10th Largest Steel Producer, HPG Leads

Overview

Vietnam entered the top 10 global steel producers for the first time in early 2026, according to World Steel Association data. Crude steel output rose 8.4% year-on-year in the first four months, driven by Hoa Phat Group (HPG), which commands 44.7% of domestic production and plans a 30% output increase this year. The milestone underscores Vietnam’s shift from billet importer to a self-sufficient producer serving engineering, shipbuilding, energy, and defense industries.

Key Facts

• Vietnam produced 8.5 million tonnes of crude steel in the first four months of 2026, up 8.4% year-on-year.
• The country ranked 10th globally, surpassing Italy, according to the World Steel Association.
• Hoa Phat Group (HPG) accounted for 44.7% of Vietnam’s steel output, or 11 million tonnes in 2025.
• HPG’s annual production is expected to jump 30% year-on-year to exceed 14 million tonnes in 2026.
• Vietnam’s crude steel output rose from 20 million tonnes in 2023 to 24.6 million tonnes in 2025.
• The Hoa Phat Dung Quat Iron and Steel Integrated Complex produces high-quality products including rail steel for high-speed railways.
• HPG shares closed at VND 24,150 on May 27, 2026, down 0.41% with volume of 23.1 million shares.

What Happened

The World Steel Association reported that Vietnam’s crude steel output reached 8.5 million tonnes in the first four months of 2026, an 8.4% increase from the same period last year. This growth propelled Vietnam past Italy to become the world’s 10th largest steel producer for the first time. The association noted that Vietnam’s steel sector has expanded rapidly in scale and product range since the early 2000s, when manufacturers largely depended on imported billets. Since 2010, the industry has achieved significant self-sufficiency and now produces a full range of steel products for mechanical engineering, shipbuilding, energy, and defense. Hoa Phat Group, operator of the Dung Quat integrated complex, leads in high-quality and specialized steel products, including engineering steel, tire cord steel, and rail steel for high-speed railways.

Market Context

HPG, listed on HOSE, closed at VND 24,150 on May 27, 2026, down 0.41% on volume of 23.1 million shares. The stock’s performance reflects broader market sentiment toward the steel sector, which has benefited from Vietnam’s rising global production ranking and HPG’s dominant market share. The 30% production growth target for 2026 positions HPG to capture further upside from domestic infrastructure spending and export demand. Vietnam’s steel output growth outpaces regional peers, reinforcing the sector’s attractiveness to institutional investors.

Strategic Significance

Vietnam’s ascent to the 10th largest steel producer globally validates the country’s long-term industrialization strategy and HPG’s capital-intensive expansion. HPG’s 44.7% market share and focus on high-value products (e.g., rail steel for high-speed railways) differentiate it from commodity-driven peers. The milestone also signals reduced import dependence and potential for export growth, particularly as global supply chains diversify. For long-term investors, HPG’s ability to sustain production growth and margin stability amid cyclical steel prices will be key to its valuation.

What to Watch

• HPG’s Q2 2026 earnings release for production volume and margin data.
• World Steel Association’s mid-year global demand forecast for 2026.
• Progress of HPG’s Dung Quat Phase 2 expansion and any new product certifications.
• Government infrastructure spending announcements, especially for high-speed rail projects.
• Export tariff or trade policy changes affecting Vietnamese steel in key markets like the US and EU.