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VinMetal, a subsidiary of Vingroup (Vietnam's largest private conglomerate), signed a Memorandum of Understanding (MoU) on May 7 with the UK-based company Primetals Technologies. DX52D+ZM Hot dip Zinc-magnesium alloy coating (ZM) steel , The two parties will collaborate on the development of a high-tech, integrated steel complex in Ha Tinh Province, Vietnam. According to local media reports, this partnership marks a significant step in VinMetal's accelerated expansion into Vietnam's steel industry.
Under the agreement, Primetals Technologies will provide VinMetal with technical support covering the entire production process—from ironmaking and steelmaking to rolling—and the two companies will also cooperate in areas such as employee training, equipment maintenance, and system integration.
VinMetal was officially established in October 2025 and subsequently announced plans to build a large-scale industrial steel complex. DX52D+ZM Hot dip Zinc-magnesium alloy coating (ZM) steel , The company’s initial registered capital was VND 10 trillion (approximately USD 380 million); just one month later, this was increased to VND 15 trillion, rapidly bringing its capital scale close to that of major Vietnamese steel enterprises, despite it being a new entrant to the industry.
The project aims to produce long and flat steel products, primarily targeting Vietnam's domestic industrial and infrastructure sectors while also catering to export markets. However, the company has previously indicated that a portion of its production capacity would be prioritized to meet the internal needs of the Vingroup conglomerate, such as for automotive and high-value-added manufacturing.
The project's first phase is planned to have an annual capacity of 5 million tonnes, with production expected to commence in 2027. While some market observers consider this timeline ambitious, sources indicate that VinMetal has already begun engaging with suppliers of steel raw materials to assess future supply capabilities.
Market reactions to the news of this partnership have been mixed. Some industry insiders view it as a significant milestone in the project's progress, whereas others believe it remains in the preliminary stages.
A Vietnamese trader noted that Vingroup requires high-quality steel for the manufacture of automobiles and other high-value-added products, making its entry into the steel industry a logical move.
However, industry insiders in Vietnam point out that the project has not yet entered the substantive construction phase; it is expected to take at least a year and a half before the market sees its actual impact on the scrap steel sector.
Meanwhile, some steel industry representatives worry that, given Vingroup's substantial financial strength and rapid pace of execution, VinMetal could exert significant competitive pressure on existing Vietnamese steel companies in the future.
Market observers also warn that rising raw material costs—driven by the situation in the Middle East—could undermine the economic viability of the VinMetal project.
Despite the ongoing issue of regional steel oversupply, the Vietnamese government continues to advance infrastructure development and industrial expansion.
In February of this year, the Vietnamese government announced plans to reduce reliance on imported steel, focusing on boosting domestic production capabilities for high-value-added and specialty steel products.
For Primetals, this partnership further expands its footprint in Vietnam’s steel industry. DX52D+ZM Hot dip Zinc-magnesium alloy coating (ZM) steel , The company had previously signed an agreement with Vietnam’s Xuân Thiện Group in December 2025 to construct two advanced electric arc furnace (EAF) green steel production lines in Ninh Bình Province, primarily targeting the automotive and defense-grade steel markets.
However, it is understood that the VinMetal project in Hà Tĩnh is more likely to adopt the blast furnace-basic oxygen furnace (BF-BOF) production route rather than the electric arc furnace (EAF) process.
