The Billionaire’s Stand: Why Tran Dinh Long Opted Out of the High-Speed Rail Race and Stuck to His Strengths

When asked if Hoa Phat intended to invest in the high-speed railway project like large private corporations such as Vingroup or Thaco, Mr. Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group (HPG), candidly replied, “No, we don’t have the capacity. Hoa Phat has always been consistent and focused on our strengths. We specialize in providing iron and steel, which is our core competency.”

Hoa Phat commits to supplying 10 million tons of high-quality high-speed railway steel. The group will solely participate as a steel supplier for the project.

Mr. Tran Dinh Long shared his perspective on the North-South high-speed railway project, stating that it is a “once-in-a-millennium opportunity” to establish a railway industry in Vietnam. In fact, China developed its railway industry starting from their first project, and now they boast a complete industrial complex.

Mr. Long emphasized that constructing a high-speed railway is not merely about building a transportation route but also about fostering a new industry. He highlighted the importance of government policies that provide sufficient priority and incentives, as such an opportunity may never arise again. However, Hoa Phat will only invest in areas where they excel, avoiding diversification beyond their capabilities.

“Anyone can undertake a project, but the key is ensuring progress, timeliness, and quality,” Mr. Long asserted. “Especially after Resolution 68 on promoting the private sector, I believe private enterprises can do a better job.”

In the past, Mr. Tran Dinh Long, Chairman of Hoa Phat Group, has consistently emphasized their focus on the core business domain and their superior strength in steel products.

Concentrating on Steel for the Next 5-10 Years

At the 2024 Annual General Meeting, Mr. Long reaffirmed, “The steel market is highly competitive, so in the short term, for the next 5-10 years, Hoa Phat will concentrate all our efforts in this sector.”

Although he had previously stated that “no one can produce steel forever,” he emphasized that their multi-industry strategy remains intact, with tactical adjustments made as needed.

Mr. Long considers steel the “bread and butter” of the industrial sector, underscoring its indispensable role in nation-building and development. Even amid challenges in the steel market, he remains steadfast in this choice.

Intense Focus on the Dung Quat 2 Project

“To be honest, I want to focus intensely on completing the Dung Quat 2 project and avoid distractions,” shared Mr. Long. “Dung Quat 2 is of utmost importance to Hoa Phat. It’s an opportunity we can’t afford to miss.”

Upon completion, this project will elevate Hoa Phat’s steel production capacity to nearly 15 million tons per year, propelling the group into the top 30 steel producers globally.

Investing in High-Tech Steel Products

Mr. Long and the Hoa Phat leadership team have directed their focus on manufacturing steel products with advanced technical requirements, such as hot-rolled coil (HRC), wire rod for cold heading, arc welding wire, steel for elevator cables, weather-resistant steel plates, and especially steel cord for tire reinforcement.

Hoa Phat Group has collaborated with leading global corporations like Danieli (Italy), Primetals Technologies (Japan), and SMS Group (Germany) to invest in high-tech steel production lines. Simultaneously, Hoa Phat supplies high-tech steel to international partners, solidifying their position in the global market.

Business Strategy Philosophy

Despite the steel industry’s frequent market fluctuations and challenges, Mr. Long consistently displays confidence and leadership in navigating Hoa Phat through difficult periods. He once stated, “I’m not afraid of competition; I’m not afraid of anything. I’ve lost the nerve to be afraid,” reflecting his determination.

Mr. Long believes that to compete effectively, superior machinery is essential, demonstrating a thoughtful and cautious approach to investing in technology to produce high-quality products. When deciding to invest billions of dollars in Dung Quat, he faced skepticism but remained steadfast in his vision.