Vingroup gets approval for $3 billion steel plant: Bao Ha Tinh

Vingroup gets approval for $3 billion steel plant: Bao Ha Tinh

Vingroup Secures Approval for $3.07 Billion Steel Plant in Central Vietnam

Vietnamese authorities in Ha Tinh province have granted an investment certificate for Vingroup's ($3.07 billion steel plant project, marking a significant expansion of the conglomerate's industrial operations in the central region. The facility, to be developed by Vinmetal Production and Trading JSC—a Vingroup subsidiary—will occupy over 460 hectares within the Vinhomes Vung Ang Industrial Park. With an annual production capacity of five million tons, the plant will manufacture hot-rolled coil (HRC), high-strength steel, and specialty alloy steel, targeting sectors such as electric vehicle (EV) manufacturing, high-speed rail infrastructure, and civil construction.

Vinmetal, established in October 2025 with a charter capital of $575.93 million, is led by Pham Nhat Quan Anh, the eldest son of Vingroup chairman Pham Nhat Vuong. The project aims to secure raw material supply chains for Vingroup's core businesses, including property development under Vinhomes (HoSE: VHM) and EV production via VinFast. It also aligns with broader infrastructure goals, including support for the proposed North-South high-speed railway and regional transport corridors.

The steel plant complements Vingroup's existing industrial footprint in Ha Tinh, which includes a VinFast EV manufacturing plant (200,000 annual vehicles), a VinES battery factory (first-phase investment exceeding $153.58 million), and a $821.66 million factory-for-lease project. Tran Bau Ha, standing Vice Chairman of the Ha Tinh People's Committee, emphasized that the approval reflects the province's strategy to attract large-scale manufacturing, boost revenue, and develop the Vung Ang Economic Zone into a sustainable industrial hub.

The project underscores Vingroup's ongoing vertical integration efforts, though its expansion has contributed to rising debt, which reached $12.35 billion as of September 2025. The steel plant's success will depend on its ability to meet domestic demand while navigating competitive and regulatory challenges in Vietnam's industrial sector.

(https://theinvestor.vn/vingroup-secures-approval-for-3-bln-steel-plant-in-central-vietnam-d18485.html): Source 1, 3, or 6
(https://www.reuters.com/world/asia-pacific/vietnams-vingroup-develop-3-billion-ecosystem-telangana-strengthens-india-push-2025-12-09/): Source 5