Vietnam may build environmentally friendly steel plant in Thuan Thien Hue Province

Given the highly likely trade restrictions, including those targeting its main hot coil supplier China, Vietnam may begin building a new environmentally friendly steel production plant to increase sheet metal production and self-sufficiency. The factory will focus on producing hot coils and high-quality steel, and is expected to start production in 2028.

According to the statement on the information portal website of Thanh Tien Hue Province, Vietnam, Thanh Tien Hue Province has started searching for investors for the Chan May Green Steel Plant construction project. The project objective is to invest in the construction of a factory that produces hot coils and high-quality steel, with an annual production capacity of approximately 3 million tons. The factory will use pig iron, scrap steel, and sponge iron as steelmaking raw materials.

The project is expected to start SG250 Grade B construction in the third quarter of 2025 and commence production in the second quarter of 2028. The estimated project cost is 32 trillion Vietnamese dong (approximately 1.3 billion US dollars), and investors are expected to provide at least 15% of the funding. It is reported that the steel plant is planned to be built in the Chan May Lang Co economic zone.

In addition, Vietnam Development SG250 Grade B Group is constructing the Hoa Phat Dung Quat 2 Iron and Steel Production Complex (Dung Quat 2) in Quang Tri Province. It is expected that the company will complete the installation of the strip hot rolling mill this month and conduct a hot test by the end of 2024. Dung Quat 2 will focus on producing high-quality hot coils (5.6 million tons/year) for consumer applications such as automobiles, white goods, and containers. Industry insiders believe that if the Vietnamese government imposes anti-dumping duties on Chinese hot coils, it may be an opportunity for the manufacturer to gain more market share.

In late July, Vietnam SG250 Grade B conducted anti-dumping investigations on hot-rolled coils from China and India at the request of major local producers and Formosa Plastics. The investigation will be completed within 12 months, with a maximum extension of 18 months in case of special circumstances.