Hoa Phat Group plans to invest $4.8bln in Phu Yen

The signing of an MoU between the Hoa Phat Group and leaders from south-central Phu Yen province took place at the latter’s investment promotion conference on March 3.

Speaking at the signing ceremony, Mr. Tran Dinh Long, Chairman of the Hoa Phat Group, said that after a period of research, study, and discussion with leaders from Phu Yen, the company has decided to invest in three projects in the South Phu Yen Economic Zone.

The projects include Bai Goc Port, the Hoa Phat Iron and Steel Complex, and the Hoa Tam Industrial Park. Total investment in the projects is estimated at more than VND120 trillion ($4.8 billion).

Mr. Long said that, upon completion, the projects are expected to create jobs for 20,000 workers and contribute VND10 trillion ($400 million) each year to the province’s budget.

The Hoa Phat Group currently boasts an annual production capacity of 8.5 million tons of steel, including 5.5 million tons of billets, construction steel, and high-grade steel, and 3 million tons of hot-rolled coils.

The Group posted revenue of VND120 trillion ($4.8 billion) in 2023, a 6 per cent decline compared to 2022, while profits fell to their lowest level since 2017, at VND6.8 trillion ($276.2 million).

Hoa Phat is currently building the Dung Quat 2 Integrated Steel and Iron Complex in central Quang Ngai province, which has a designed capacity of 5.6 million tons of hot rolled coils. Upon project completion in 2025, the Group’s production capacity will increase to over 14 million tons a year.