Quang Ngai approves $380 mln railway rail manufacturing project

The Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority (DEZA) in central Quang Ngai province has granted in-principle approval for a major rail track and special steel project worth VND10 trillion ($380 million).

The project will be developed by Hoa Phat Dung Quat Rail and Special Steel JSC, a subsidiary of steel conglomerate Hoa Phat Group.

According to DEZA, the project will span 14.79 hectares and is designed to produce up to 700,000 tons of rail and special steel annually.

The facility is expected to operate for 50 years from the date of land allocation or lease.

Of the total investment, VND3.8 trillion will be sourced from the investor’s equity, with the remaining capital to be mobilized through other channels.

Legal procedures and site clearance are expected to be completed by the second quarter of 2026. Construction is scheduled to last two years, with completion projected for the third quarter of 2028.

According to the proposed timeline, all legal procedures, compensation, and site clearance are scheduled for completion by the second quarter of 2026. Construction is expected to be finished, with the plant becoming operational in the third quarter of 2028.

The Management Board stated that once operational, the facility will be crucial in meeting the domestic demand for railway rails for upcoming key national projects, including the North-South High-Speed Railway, and the Lao Cai - Hanoi - Hai Phong railway,  among others.