Chairman of Hoa Phat Group, Tran Dinh Long, speaks at the inauguration ceremony on August 19, 2025.
In the context of fierce global steel industry competition, where every dollar saved in the supply chain can determine a company’s position, logistics infrastructure autonomy is crucial.
According to ResearchGate, in developed markets, logistics account for approximately 8-15% of the cost per ton of steel. However, this figure can soar to 20-25% in countries with underdeveloped infrastructure.
This enormous disparity represents the profit being “eroded” during transportation.
This is one reason why many large steel manufacturers worldwide directly own large-scale seaports. Hoa Phat Group (stock code HPG), led by billionaire Tran Dinh Long, follows this strategy as Vietnam’s leading steel producer. They have invested in Hoa Phat Dung Quat Port (in Quang Ngai) and Bai Gok Port (in Hoa Xuan, Dak Lak province, previously in Phu Yen).
Steel Giants with Seaport Ownership
In Europe, the “giant” ArcelorMittal, with a steel production of 58.1 million tons in 2023, has long operated coastal factories integrated with private ports, such as in Dunkirk, France.
Similarly, in Asia, POSCO’s (South Korea) integrated steelworks in Pohang and Gwangyang are supercapable of accommodating 300,000 DWT vessels, making the corporation one of the most cost-competitive producers.
Even the world’s leading steel producer, Baowu Steel of China (130.8 million tons in 2023), manages giant iron ore transshipment ports like Majishan to serve its production empire.
ArcelorMittal’s Port in Dunkirk
For Hoa Phat, the specialized port at the Dung Quat Steel Complex, capable of receiving 200,000 DWT vessels, has become the logistics “lifeline,” optimizing the group’s costs.
The Bai Gok Port project, inaugurated by billionaire Tran Dinh Long on August 19, along with the investment in constructing and operating the infrastructure of Hoa Tam Industrial Park Phase 1, has a central component: the Bai Gok Deepwater Port, with an investment of approximately VND 24,000 billion.
Earlier, on August 15, 2025, the Ministry of Construction approved the adjusted planning, allowing Bai Gok Port to receive vessels with a capacity of up to 220,000 DWT.
Bai Gok Port and Hoa Tam Industrial Park Layout
Alongside the port is the nearly 1,115-hectare Hoa Tam Industrial Park, which is not only home to steel mills but also attracts satellite businesses in the supply chain.
How Large is Hoa Phat’s Port Scale?
While Dung Quat Port is the foundation for Hoa Phat’s present, Bai Gok Port is planned with a broader multi-industry vision, serving metallurgy, petrochemicals, and the energy sector. Upon completion, Hoa Phat will own a dual-port network along the south-central coast, with a total cargo volume of about 53 million tons/year, capable of accommodating vessels of up to 220,000 DWT.
Compared to other businesses, Formosa Ha Tinh’s Son Duong Port can accommodate 200,000 DWT vessels, with an annual throughput of ~24 million tons; Gwangyang Port of POSCO (South Korea) serves a cargo volume of over 70 million tons/year.
China Steel Corp.’s specialized port in Kaohsiung, Taiwan, can accommodate vessels of ~150,000 DWT, with a cargo volume of ~20-25 million tons/year, while ArcelorMittal Nippon Steel in Hazira, India, can handle vessels of ~170,000 DWT, with a cargo volume of ~20 million tons/year.
Hoa Phat’s dual-port network scale is even more impressive when compared to other ports in the South-Central region. Public ports like Quy Nhon, with a throughput of approximately 9.6 million tons (in 2023) and a vessel capacity of mainly 50,000 DWT, serve as a cargo hub for the entire economic region, catering to hundreds of businesses.
Benefits of the Dual-Port Network
At each of Hoa Phat’s steel complexes, the port system is 100% integrated with the industrial park through conveyor systems, directly transporting raw materials from ships into blast furnaces and delivering finished products to the loading docks. This is a unique advantage that no public port can offer to businesses.
Another benefit is having multiple options to optimize the supply chain. For instance, if Hoa Phat’s primary iron ore supply from Australia faces long-term issues, the company must switch to alternative sources from Brazil or a West African country.
In that case, the new shipping route may make it much more convenient and cost-effective to use Bai Gok Port than Dung Quat Port.
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