Tran Dinh Long, Chairman of Hoa Phat Group, expressed confidence that the company’s steel rail products will be competitively priced compared to imports. He described the opportunity to help build a railway industry in Vietnam as a “once-in-a-millennium chance.”

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Tran Dinh Long, Chairman of Hoa Phat Group.

On May 29, Hoa Phat Group signed a contract with Germany’s SMS Group to provide technology and a production line for steel rails and structural steel, with a designed capacity of 700,000 tons per year.

Tran Dinh Long noted that over 90% of the world’s high-speed rail manufacturers currently use equipment from SMS, a global technology leader in this field.

At present, only a few major steelmakers globally are capable of producing high-speed railway rails, including Voestalpine (Austria), JFE (Japan), Baosteel (China), and JWS Steel.

When asked by VietNamNet about the price competitiveness of Hoa Phat's steel rail products versus foreign offerings, Long emphasized that high-speed rail production is just one component of the group’s broader strategy. Hoa Phat’s products have consistently performed well in the market by being part of an integrated value chain that prioritizes quality, technology, and economic efficiency.

“We are confident that steel rails, as a new link in this value chain, will be fully competitive. This is something we have tested and verified through real-world results. We are certain of it,” Long said.

Responding to another question about the absence of a confirmed investor for the North-South high-speed rail project and why future project investors might choose Hoa Phat steel, Long stated that the company does not wait for orders before acting. “We proactively manufacture high-quality steel products not only for high-speed rail but also for construction - our traditional strength.”

“If the product is good and reasonably priced, customers will come. This is not a ‘chicken-or-egg’ scenario,” Long affirmed.

“We are not doing anything illogical or uneconomical,” the Hoa Phat Chairman stressed regarding the steel rail and structural steel production project. “The project’s focus is on structural steel - a product in high demand across industries like wind power, solar energy, and oil and gas. I’m even concerned we might not be able to meet demand.”

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SMS Group will design, supply, and install the steel rail and specialty steel production line for Hoa Phat.

He clarified that Hoa Phat is not “putting all its eggs in one basket,” as steel rails and structural steel can also be used in urban railway projects and for export.

“This project, with a scale of 700,000 tons, is worth about half a billion US dollars - a figure not too large to be concerned about,” the billionaire noted. “Hoa Phat will hire foreign experts and is willing to incur all necessary costs to ensure product quality and on-time delivery.”

The first products from the project are expected in the first quarter of 2027.

Does Hoa Phat want to invest in high-speed railway infrastructure?

Tran Dinh Long recounted that just two to three days after THACO proposed becoming the main investor in the high-speed railway project, many people called him asking, “If Vingroup and THACO want in, what about Hoa Phat?” He clarified, “Hoa Phat always does what it’s strongest at. We will only focus on supplying steel - our core expertise.”

He voiced agreement with THACO Chairman Tran Ba Duong’s view that the North-South high-speed railway project presents a “once-in-a-millennium opportunity” to establish a railway industry in Vietnam. He cited China’s experience, where the development of one railway project led to a comprehensive railway industry.

Long stressed that building a high-speed rail line is not just about laying tracks but about forming an entirely new industrial sector.

“If the government doesn’t provide sufficient incentives and favorable policies, this opportunity will never come again.”

Following the passage of Resolution 68 on private economic development, Hoa Phat’s leadership believes that private companies now have more favorable conditions to participate in large-scale projects.

What matters most, he said, is ensuring quality, meeting deadlines, and learning from past projects that took double or triple the planned duration.

“In my view, both state-owned and private enterprises can handle the work. But if private enterprises take the lead, the outcome will be better and more efficient,” Long concluded.

Tam An