According to *Vietnam News Briefs* on May 29, Hoa Phat Group signed a contract with Germany’s SMS Group for the supply of technology and a production line with an annual capacity of 70,000 tons of steel rails and sections. This production line is a key component of Hoa Phat’s rail and section steel plant project in Quang Ngai Province.
The production line is expected to be completed in 20 months, with the first products, including urban rail steel, crane steel, high-speed rail tracks, and special or shaped steel (U, I, H, V profiles), to be manufactured in the first quarter of 2027. These products will serve Vietnam’s key national railway projects and be exported to international markets.
At a meeting in February, Vietnamese Prime Minister Pham Minh Chinh urged Hoa Phat to research and produce high-quality steel, particularly for the North-South high-speed railway, cross-border railways connecting to China, and future urban rail systems. Hoa Phat selected SMS Group as its partner because SMS supplies equipment to approximately 90% of global high-speed rail manufacturers. Under the agreement, SMS will design, supply, and install the rail and special steel production line. All major equipment will be manufactured in Germany, utilizing Europe’s most advanced production line to ensure consistent quality meeting international high-speed rail standards.
Currently, no Vietnamese company produces high-speed rail tracks. Globally, only a few major steel companies, such as Voestalpine (Austria), JFE (Japan), Ruixiang (China), and JWS Steel (Italy), can manufacture this type of steel. In Southeast Asia, Hoa Phat will become the only company producing such products. (Source: Economic and Commercial Office, Embassy of the Socialist Republic of Vietnam)
