The Rise of Vietnam’s Largest Steel Mill: Unveiling the Rapid Construction Strategy

The Hoa Phat Dung Quat 2 Steel Complex Project was given the green light on June 18, 2021, with a total area of 279 hectares in the Dung Quat Economic Zone, Binh Son District, Quang Ngai Province. The project, with a total investment of VND 85,000 billion, is developed by Hoa Phat Group (HPG) and boasts a design capacity of 5.6 million tons of high-quality hot-rolled coil (HRC) steel per year.

Adopting European technology, the steel production line at the Dung Quat 2 project utilizes a continuous casting and rolling process, enabling the manufacture of diverse steel grades and ensuring superior quality. The project serves the automotive industry and produces low-carbon steel for products such as canned food, household goods, steel structures, and HRC steel for high-strength, weather-resistant container production.

Designed with a blast furnace volume of 2,500m3, twice the size of Dung Quat 1’s furnace, Dung Quat 2 optimizes energy consumption. Hoa Phat also invests in environmental standards beyond current requirements, particularly in reducing CO2 emissions and energy consumption.

With over 100 construction packages and depths reaching 12m in certain areas, the project is considered a benchmark for heavy industry, demanding exceptional construction management skills. Coteccons, the main contractor, employs the fast-track method, a strategy that involves simultaneous execution of multiple construction stages instead of a sequential approach, thereby reducing waiting times, optimizing resources, and expediting progress without compromising quality.

Coordinating a workforce of over 700 people at its peak, the project required seamless collaboration between teams, construction zones, and key construction areas to maintain momentum and ensure absolute safety. Over 15,000 continuous working hours in the past three years have not only kept the project on schedule but also ensured the quality of each component handed over to the investor.

In the first quarter of 2025, Hoa Phat Group produced 2.66 million tons of crude steel, a 25% increase year-on-year. Sales volume of HRC, high-quality steel, construction steel, and billet reached 2.38 million tons, a 29% surge compared to the same period last year. Notably, HRC output stood at 993,000 tons, marking a 23% year-on-year increase. Domestic sales of HRC in the first quarter of 2025 reached 874,000 tons, a 9% rise year-on-year, while construction steel and high-quality steel products totaled 1.19 million tons, a 25% increase. The Group also supplied 198,000 tons of billet to the domestic market and for export, more than doubling the volume from the previous year.

Fueled by robust production and sales, Hoa Phat Group’s revenue in the first quarter of 2025 amounted to VND 37,950 billion, a 22% increase year-on-year, with after-tax profit reaching VND 3,350 billion, fulfilling 17% of the annual plan.

In 2021, the Hoa Phat Dung Quat 1 Steel Complex produced 5.45 million tons of steel, exporting 1.62 million tons, with a total revenue of VND 90 trillion. The complex provided jobs for approximately 13,600 workers, 80% of whom were locals, with an average income of VND 11 million per month.

In 2022, the Dung Quat 1 project will be optimized to increase its capacity to 6 million tons per year, aiming to export 2.1 million tons with a total revenue target of VND 97 trillion.