Quang Ngai okays Hoa Phat’s 381-million-USD rail production project
Covering an area of 14.79 ha in the central province of Quang Ngai, Dung Quat's rail track and special steel project has a designed capacity of 700,000 tonnes per year and a total investment of 10 trillion VND (over 381 million USD).
Production at Hoa Phat Dung Quat steel factory in Quang Ngai province. (Photo: VNA)
Quang Ngai (VNA) –🍸 The Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority (DEZA) in the central province of Quang Ngai has given in-principle approval to a rail track and special steel project by Hoa Phat Dung Quat Rail and Special Steel JSC, a subsidiary of steel giant Hoa Phat.
Covering an area of 14.79 ha, the project has a designed capacity of 700,000 tonnes per year and a total investment of 10 trillion VND (over 381 million USD). Of the amount, 3.8 trillion VND will come from investor equity, while the rest will be mobilised. It will operate for 50 years from the date of land allocation or lease.
According to the DEZA, legal procedures and site clearance are expected to be completed by the second quarter of 2026. Meanwhile, construction will span two years and is scheduled for completion in the third quarter of 2028.
The unit has asked the project’s investor to fully address feedback from relevant ministries and agencies, and to complete the preparation, appraisal, and approval of the project's feasibility study and environmental procedures.
Previously, during a field trip to the Hoa Phat Dung Quat steel complex within the Dung Quat Economic Zone in February 2025, Prime Minister Pham Minh Chinh called on Hoa Phat Group to consider producing high‑quality steel for railway projects, especially the North–South high‑speed railway.
Luong Kim Son, head of the DEZA, stated that once operational, the project will timely meet the demand for rail steel in key national infrastructure projects such as the North–South high-speed railway and urban rail systems./.
The Momentum is specifically designed for international maritime operations and is capable of docking at deep-water ports such as Dung Quat - one of Hoa Phat’s key transshipment hubs, which handles the majority of raw material imports for its steel plants.
During the visit, the parties exchanged ideas on high-tech material solutions and technologies that could be applied to national strategic transport infrastructure projects, particularly the North–South high-speed railway project.
Prime Minister Pham Minh Chinh said Hoa Phat Group plays a key role in the development of the domestic steel industry and the broader industrialisation and modernisation efforts of the country.
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