Vingroup’s 10 trillion dong steel venture to supply materials for rails, EVs, real estate

VinMetal will initially prioritise supplying materials for Vingroup’s ecosystem, such as Vinhomes real estate projects and VinFast EVs

[HO CHI MINH CITY] Vingroup, Vietnam’s largest private conglomerate, has launched VinMetal Joint Stock Company for Manufacturing and Trading, marking its formal entry into the metallurgy industry with an initial investment of 10 trillion dong (S$490 million), according to its statement on Monday (Oct 6).

A high-tech industrial steel production complex is planned in Vung Ang Economic Zone in the north-central coastal province of Ha Tinh, with an initial capacity of around five million tonnes a year in Phase 1.

The company’s core product lines will include hot-rolled steel, high-strength steel, and specialised alloy steels for electric vehicles (EV) and high-speed transport infrastructure.

Flagship offerings will feature high-quality sheet steel, stamped automotive body steel, and international-standard structural steel for bridges, ports and railways.

Initially, VinMetal will prioritise meeting the internal material demands of Vingroup’s ecosystem, notably its Vinhomes real estate projects and VinFast EV manufacturing.

VinMetal also seeks to supply high-quality steel for major projects in industry, energy and transportation currently under research and proposal. These include Vietnam’s US$67 billion North-South high-speed railway, as well as bullet trains proposed by Vingroup’s rail arm VinSpeed, such as the US$3 billion Ho Chi Minh City-Can Gio metro line and the US$5.4 billion Ha Noi-Quang Ninh route.

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While Vietnam has made significant strides in increasing its overall steel production – estimated at 29.4 million tonnes in output and 12.6 million tonnes in exports in 2024, up by 6.1 per cent and 13.5 per cent year on year, respectively – its capacity to produce specialised rail-grade steel remains limited, particularly for large-scale infrastructure projects such as high-speed railways.

Last year, Vietnam imported around 17.7 million tonnes of finished steel, marking year-on-year growth of 32.9 per cent. These imports were valued at more than US$12.6 billion, up 20.6 per cent from the year before.

Against this backdrop, VinMetal aims to substitute steel imports for its projects while positioning itself for future exports to regional markets.