Vietnam’s Vingroup makes first foray into steel industry

This strategic move signals the group’s ambitions to expand its industrial and technological footprint while venturing deeper into the production of materials.

According to its announcement released on Monday, VinMetal, with a registered capital of VND10 trillion (US$379 million), plans to build a hi-tech industrial steel manufacturing complex in the Vung Ang Economic Zone in Ha Tinh Province.

The first phase targets an annual production capacity of five million metric tons.

VinMetal will produce a wide range of steel products, including construction-grade steel, hot-rolled coil (HRC), high-strength steel, and specialized alloy steel to serve electric vehicle manufacturing and hi-speed transportation infrastructure.

Key products will include steel sheets, high-quality automotive body stamping steel, rail steel, and structural steel for bridges, ports, and railroads – all designed to meet international standards.

The initiative aims not only to reduce Vietnam’s reliance on imported steel, but also to gradually position the country as an exporter in the region.

Initially, VinMetal will serve the internal demand of the Vingroup ecosystem, particularly for real estate developments under Vinhomes and electric vehicles produced by VinFast.

Vingroup also plans to supply high-grade steel to several major infrastructure projects, including the north-south high-speed railway, the Ho Chi Minh City - Can Gio and Hanoi - Quang Ninh routes, and other energy and transportation projects.

Nguyen Viet Quang, vice-chairman and CEO of Vingroup, who will also serve as CEO of VinMetal, emphasized that the new company is more than just a steel plant.

VinMetal represents a strategic preparation for Vietnam’s future of modern, green, and sustainable infrastructure, he said.

He highlighted that Vingroup’s proactive investment in core industries is part of a broader vision to help Vietnam enter a new era when Vietnamese firms lead in technology, materials, and the execution of critical national projects.

Currently, the Vietnamese steel sector is led by Hoa Phat Group, headed by Tran Dinh Long.

Hoa Phat remains the only domestic company publicly committed to producing rail steel and one of the two capable of manufacturing hot-rolled coil.