Hoa Phat Group’s Strategic Expansion in Phu Yen
Hoa Phat Group, one of Vietnam’s most prominent steel manufacturers, has unveiled a bold and ambitious plan to set up three new subsidiaries in the south-central province of Phu Yen. These ventures, Hoa Tam IP Infrastructure Development JSC, Bai Goc Port Phu Yen JSC, and Hoa Phat Phu Yen Steel JSC, are designed to integrate key infrastructural elements including steel manufacturing, logistical development, and industrial park infrastructure. With an estimated investment of VND114.47 trillion ($4.4 billion), these projects signify Hoa Phat Group's long-term commitment to shaping Vietnam’s industrial future.
Phu Yen, a province known for its rich natural resources and strategic location along Vietnam’s coast, has long been identified as a prime area for development. The new initiatives are expected to create significant economic opportunities in the region, from boosting job creation to facilitating the nation’s growing role in global trade. These projects are anticipated to provide a significant boost to Vietnam’s steel industry, maritime trade, and infrastructure capacity, solidifying the region’s competitive advantage in both national and international markets.
Hoa Tam Industrial Park: An Economic Powerhouse
The first of the three groundbreaking projects is the development of the Hoa Tam Industrial Park, launched by Hoa Tam IP Infrastructure Development JSC. This sprawling industrial park will cover a massive 492 hectares and is expected to play a pivotal role in enhancing the industrial infrastructure of the region. The park will focus on leasing land for industrial use, while also constructing factory facilities and office spaces for rent. This initiative aligns with the growing demand for industrial spaces, providing an ideal environment for both domestic and international businesses to set up operations in Vietnam.
The total investment for the Hoa Tam IP stands at VND4.47 trillion ($172.53 million), and the park is expected to be completed within four years of land allocation. The project is aimed at creating an industrial hub that will cater to various sectors, such as manufacturing, logistics, and services, contributing to the economic growth of Phu Yen Province and Vietnam at large. As a part of the park’s development, significant focus will be placed on modern infrastructure, including transportation links, power supply, water management, and waste disposal systems, making it an attractive destination for businesses looking for high-quality operational space.
Bai Goc Port: A Gateway for International Trade
The second key project under Hoa Phat Group's expansion plan is the Bai Goc Port, to be developed by Bai Goc Port Phu Yen JSC. Located in Dong Hoa Township, the port will be one of the largest maritime hubs in Vietnam. Spanning 156 hectares of land and 214 hectares of water, the port will be capable of handling a variety of ships, including large vessels of up to 220,000 DWT (Dead Weight Tonnage). The project is set to become a central maritime gateway in Vietnam’s logistics network, facilitating both domestic and international trade.
The port’s development will include the construction of 13 wharves, totaling a length of 3,589 meters, as well as a 240-meter-wide navigational channel and a 2,287-meter-long breakwater. The port will have an annual throughput capacity of 30 to 50 million metric tons, positioning it as a major player in the regional shipping industry.
The proposed VND24 trillion ($926.35 million) investment in the Bai Goc Port aligns with Vietnam’s national port development plan for 2021-2030, with a long-term vision extending to 2050. The port will serve as a key link in global trade routes, facilitating the import and export of goods through its world-class infrastructure. At present, the port is in the early stages of development, with topographical, geological, and hydrological surveys underway. A formal investment proposal will be submitted to the government once all planning conditions are met.
The completion of the Bai Goc Port by 2030 will open up numerous opportunities for trade and logistics, significantly enhancing Vietnam's maritime capacity and contributing to the overall economic growth of Phu Yen.
Hoa Phat Phu Yen Steel Complex: Strengthening Vietnam’s Steel Industry
The third cornerstone of Hoa Phat Group's expansion is the Hoa Phat Integrated Steel Complex, being developed by Hoa Phat Phu Yen Steel JSC. This colossal steel production facility will be built within the Hoa Tam Industrial Park and will span an area of 520 hectares. With a projected annual production capacity of 6 million metric tons, the complex will contribute significantly to Vietnam’s steel output, strengthening the nation’s position in the global steel market.
The Hoa Phat Steel Complex will be developed in two phases. The first phase will target an output of 3 million metric tons, followed by a second phase that will increase production by an additional 3 million metric tons, bringing the total capacity to 6 million metric tons annually. The total investment for this project is VND86 trillion ($3.32 billion), and the construction is expected to take 36 months after receiving investment approval and land allocation.
This new complex will be a state-of-the-art facility, incorporating cutting-edge technology and high-efficiency production methods. It will not only meet the growing demand for steel domestically but will also boost the country’s steel exports, contributing to Vietnam’s economic and industrial standing. The steel complex’s development is poised to generate a significant number of jobs, both directly in the steel industry and indirectly in related sectors such as logistics, construction, and engineering.
Key Takeaways:
• Hoa Phat Group has launched three high-profile projects in Phu Yen Province, with a combined investment of VND114.47 trillion ($4.4 billion).
• Hoa Tam Industrial Park (IP) will cover 492 hectares, focusing on industrial infrastructure, factory leasing, and office buildings. The investment is VND4.47 trillion ($172.53 million).
• Bai Goc Port will span 156 hectares of land and 214 hectares of water, with a throughput capacity of 30-50 million metric tons annually. The port will handle ships up to 220,000 DWT and has an investment of VND24 trillion ($926.35 million).
• Hoa Phat Integrated Steel Complex will span 520 hectares and have a 6 million metric tons annual production capacity, with an investment of VND86 trillion ($3.32 billion).
• The projects are expected to create numerous job opportunities and significantly enhance the region’s industrial, logistical, and economic capacities.
• Bai Goc Port is part of Vietnam’s national port development plan, with a completion target of 2030 and a long-term vision extending to 2050.
• The Hoa Phat Phu Yen Steel Complex will contribute to both domestic steel production and export growth, boosting the country’s steel industry.
