The Project on Producing Railway Rails and Special Steel Creates Momentum for Quang Ngai’s Economic Growth

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According to the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, the investment in the Hoa Phat Dung Quat railway rail and special steel production project is fully aligned with the development orientation of Quang Ngai Province in particular and the Government in general, while also generating socio-economic benefits.

On July 29, Mr. Luong Kim Son, Head of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, signed a decision approving the investment guidelines and investor for the Hoa Phat Dung Quat railway rail and special steel production project.

The project has a total investment capital of VND 10 trillion

The project is developed by Hoa Phat Dung Quat Railway Rail and Special Steel Joint Stock Company (headquartered in the Dung Quat Economic Zone, Van Tuong Commune, Quang Ngai).

It will be constructed in the Eastern Industrial Park of the Dung Quat Economic Zone, covering 14.79 hectares, with a designed capacity of 700,000 tons per year and total investment capital of VND 10 trillion. It is expected to be operational in the third quarter of 2028.

The project aims to produce iron, steel, and cast iron under industry code 2410 of the Vietnam Standard Industrial Classification (VSIC 2018).

The decision clearly states that the project will enjoy investment incentives and support in accordance with current regulations.

Leaders of Hoa Phat Group and Germany’s SMS group have signed a contract for the supply of technology and production lines for railway steel rails.

At the same time, the investor is responsible for organizing, implementing, and managing the project in accordance with the law; complying with all appraisal comments from the Ministry of Public Security, the Ministry of National Defense, and Military Region 5 Command; and fully implementing the recommendations of relevant departments, agencies, and local authorities. The investor must prepare, appraise, and approve the project’s feasibility study report in accordance with current regulations.

The investor must also complete all environmental dossiers and procedures as required and may only commence project implementation after completing these procedures.

Tran Dinh Long, Chairman of Hoa Phat Group, expressed confidence that the Group’s railway rails, structural steel and special steel products will meet the highest quality standards at competitive prices, serving high-speed railway projects and other national key developments.

The investor must closely coordinate with the Provincial Police and the Provincial Military Command to ensure national defense and security throughout the construction and operation phases; ensure economic development in tandem with national defense and security; and comply with Decree No. 71/2015/ND-CP dated September 3, 2015 of the Government on the management of activities of persons and vehicles in Vietnam’s maritime border areas.

Furthermore, the investor must comply with regulations on investment, construction, land use, fire prevention and fighting, technology, labor, and other relevant legal requirements, and fully implement all commitments made during project development and operation.

Annual budget contribution of nearly VND 150 billion

Given the urgent market demand and the Government’s orientation to promote domestic supporting industries to participate deeply in the construction and operation of national key projects, Hoa Phat plans to focus on deep processing and the production of high-quality steel from 2025 to 2030, ensuring sufficient quantity and quality for both domestic use and export—particularly for national key projects, with priority given to high-speed railway rails as expected by the Government.

According to the leadership of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, in the current context of integration and economic development, the railway system plays a crucial role in domestic cargo transit and international trade within the region.

Alongside the Hoa Phat Dung Quat Iron and Steel Complex in the Dung Quat Economic Zone, the Hoa Phat Dung Quat railway rail and special steel production project serves as a key driver of socio-economic development for Quang Ngai Province.

To meet Government expectations and assigned objectives, it is essential to promptly implement railway rail and special steel production projects.

“The proposal by the investor to develop the Hoa Phat Dung Quat railway rail and special steel production project is entirely consistent with the development orientations of Quang Ngai Province in particular and the Government in general,” emphasized Mr. Luong Kim Son, Head of the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority.

Assessing the preliminary socio-economic effectiveness of the project, Mr. Son stated that, once operational, the project will promptly meet the demand for railway rails for upcoming national key projects such as the North–South high-speed railway, the Hanoi–Lao Cai–Hai Phong urban railway network, and many other major projects.

This will contribute to meeting the infrastructure development needs of the transportation sector, accommodate the growing demand for cargo and passenger transport in the context of rapid economic growth, help reduce import costs, and build a strong domestic steel industry capable of meeting future needs.

The project also aims to synchronously develop Hoa Phat’s steel production projects in particular and the national steel industry in general; ensure a proactive supply of raw materials; reduce dependence on imports; cut costs and transportation expenses; gradually advance the roadmap for green steel production with lower emissions; and contribute to improving the technological level of railway rail, structural steel, and special steel production. It will serve as an endogenous driver helping Vietnam become a high-quality steel manufacturing center in Southeast Asia.

“With expected annual revenue of approximately VND 11.437 trillion and annual budget contributions of around VND 149.7 billion, along with driving the growth of the steel manufacturing sector, the project will significantly increase the industrial and service output and GRDP of Quang Ngai Province in particular and Vietnam’s steel industry in general,” Mr. Son shared. He also noted that aside from economic benefits, the project will create jobs for around 400 direct workers and many more indirect workers from supporting industries and services accompanying the project.

T.Giang