Hoa Sen Group's Bold $90 Million Investment in Steel Plant Expansion
Hoa Sen Nhon Hoi-Binh Dinh One Member LLC, a subsidiary of Hoa Sen Group, has announced an expansion of its steel production facility in Nhon Hoi Economic Zone, Quy Nhon town, located in the south-central province of Binh Dinh. The company will invest over VND2.3 trillion, approximately $90 million, into the expansion, which was recently approved in principle by the Binh Dinh Economic Zone Administration (BEZA).
The expanded plant, covering an additional 9.1 hectares, will increase production capacity in several key segments, including galvanized steel, color-coated steel, and cold-rolled steel. The new infrastructure will feature state-of-the-art equipment, including:
• Hot-dip galvanizing/aluminum-zinc alloy coating line with a capacity of 350,000 metric tons per year.
• Cold-rolling line capable of producing 350,000 metric tons per year.
• Shaft grinding machine with a capacity of 10 shafts per day.
• 110/22kV transformer station with a capacity of 63 MVA.
These upgrades will support the plant’s operations until 2066, marking a long-term commitment to expanding Hoa Sen Group's presence in the steel industry.
Growth and Development of Hoa Sen’s Steel Plant in Nhon Hoi Economic Zone
Hoa Sen Group first established the Hoa Sen Nhon Hoi-Binh Dinh plant in 2015, with the initial investment registration certificate issued on November 26 of that year. The facility has undergone several phases of development, each designed to enhance its capacity and streamline production processes.
The first phase of the plant’s development was inaugurated in 2017, including:
• A galvanizing/aluminum-zinc alloy coating line with a capacity of 180,000 metric tons per year.
• A color-coating line with a capacity of 45,000 metric tons per year.
• A 100,000-ton slitting line.
Following the successful launch of phase one, phase two commenced in 2019, which saw the addition of:
• A pickling line with a capacity of 800,000 metric tons per year.
• A 350,000-ton cold-rolling line.
• A galvanizing/aluminum-zinc alloy coating line with a capacity of 250,000 metric tons per year.
• A 150,000-ton color-coating line.
• An acid regeneration line capable of processing 5,000 liters per hour.
The ongoing expansion is a natural progression for Hoa Sen Group, which aims to solidify its position as one of Vietnam’s leading steel producers, while meeting the growing demand for high-quality steel products both domestically and internationally.
The Economic Impact of Hoa Sen Group’s Expansion
The expansion of Hoa Sen’s steel plant in Binh Dinh is part of a broader effort to develop the Nhon Hoi Economic Zone, which is emerging as a key industrial hub in central Vietnam. The investment aligns with the Vietnamese government’s goals to enhance the country’s manufacturing sector, attract foreign investment, and promote sustainable industrial growth.
The Nhon Hoi Economic Zone has already seen significant investments, including a joint venture between China’s Hebei Astral Imp. & Exp. Co., Ltd and Binh Duong-based Top Asian Vietnam Co., Ltd. This joint venture focuses on the production of high-end wood products and materials for export. Their facility covers nearly 6.3 hectares and has a total investment of over VND254.7 billion ($10 million).
As the zone continues to attract more investments, Hoa Sen’s steel plant expansion will further elevate the region’s industrial capabilities. The expansion is expected to help the plant compete on a global scale and increase the production of steel products for various applications, including construction and manufacturing.
Targeting Strategic Investments in 2025
The Binh Dinh Economic Zone Administration (BEZA) is targeting further industrial growth by attracting additional investments in 2025. The goal is to secure at least 49 new projects with a total registered investment of at least VND12 trillion ($470 million). The focus will be on attracting foreign companies, particularly those looking to relocate production from China to Vietnam. Key target countries include Singapore, Japan, South Korea, and several European nations.
This push for industrial diversification is part of the broader strategy to turn Nhon Hoi Economic Zone into a competitive and attractive destination for global manufacturers. Hoa Sen Group’s $90 million expansion is a significant contributor to this ongoing development.
Steel Sector’s Role in Vietnam’s Economic Growth
The steel industry is an integral part of Vietnam’s economic development, providing essential materials for the country’s booming construction, manufacturing, and infrastructure sectors. Hoa Sen Group’s investment reflects the broader growth trajectory of Vietnam’s steel market, which is expected to continue expanding as industrial and infrastructural demands increase.
Hoa Sen Group, listed on the Ho Chi Minh Stock Exchange as HSG, remains one of the country’s largest steel manufacturers. The group’s long-term strategy includes further expanding its production capacity and product offerings, ensuring that it remains at the forefront of Vietnam’s industrial sector.
By investing in modernizing and expanding its steel production facilities, Hoa Sen Group is positioning itself for continued growth in both domestic and international markets. The expansion will also create new job opportunities, further boosting the local economy and cementing Hoa Sen Group’s reputation as a key player in Vietnam’s steel manufacturing industry.
Key Takeaways:
• Hoa Sen Group’s $90 Million Investment: Hoa Sen Nhon Hoi-Binh Dinh LLC will invest over VND2.3 trillion ($90 million) to expand its steel plant in Binh Dinh province.
• Expanded Production Capacity: The expansion includes a new hot-dip galvanizing line and cold-rolling line, both with a production capacity of 350,000 metric tons per year.
• Support for Vietnam’s Steel Industry: The expansion is aimed at increasing the production of galvanized, color-coated, and cold-rolled steel for various sectors, including construction and manufacturing.
• Long-Term Project: The operation duration for the expanded plant is set until March 21, 2066.
• Previous Phases of Expansion: The first and second phases of the Hoa Sen Nhon Hoi-Binh Dinh steel plant were completed in 2017 and 2019, respectively.
• Binh Dinh Economic Zone Growth: Hoa Sen’s investment is part of the broader development of the Nhon Hoi Economic Zone, which is attracting significant industrial investment.
• Vietnam’s Manufacturing Goals: In 2025, the BEZA aims to attract 49 new projects with a combined investment of VND12 trillion ($470 million), focusing on foreign companies looking to relocate production from China to Vietnam.
• Strategic Regional Development: The expansion of Hoa Sen’s steel plant contributes to the industrial growth of central Vietnam and enhances the region’s manufacturing capabilities.
• Growth of the Steel Industry: Hoa Sen Group’s expansion strengthens its position as a leading player in Vietnam’s steel manufacturing sector and supports the growing demand for steel products.
• Foreign Investment in Vietnam: The development of Nhon Hoi Economic Zone is part of Vietnam’s broader strategy to attract foreign investment, particularly from Singapore, Japan, South Korea, and European countries.
