The additional capital will raise the total investment for the project, located in the Dung Quat Economic Zone of the central province of Quang Ngai, to VND88.4 trillion ($3.37 billion), according to a decision approved by local authorities.

Originally designed with an annual capacity of 5.6 million tons of hot rolled coil (HRC) steel, the Dung Quat 2 project will now include an additional 500,000 tons of high-quality wire rod, bringing total output to 6.1 million tons per year.

The HRC segment remains on track for commissioning in Q4/2026, while the wire rod expansion is scheduled for completion in Q2/2028. The company aims to begin trial runs and full operations by the first half of 2028.

The expansion will also require an additional 486 workers, bringing the total workforce at the site to nearly 8,000 employees.

Besides the Dung Quat 2, Hoa Phat currently operates the Phat Dung Quat steel integrated complex 1 (Dung Quat 1) in the same economic zone. It has been operational since 2021 with an annual production capacity of 6 million tons.

In Q2/2025, Hoa Phat reported revenue of VND36.29 trillion ($1.38 billion), down 9% year-on-year. However, a sharper decline in input costs boosted net profit by 28% to VND4.27 trillion ($162.7 million), the highest quarterly profit since Q3/2022.

For the first half of the year, revenue totaled VND74 trillion ($2.82 billion), while net profit reached VND7.6 trillion ($290 million), up 5% and 23% year-on-year, respectively. These results represent 43% of the firm’s annual revenue target and 51% of its full-year profit goal.

HPG shares closed up 5.17% to VND28,500 ($1.09) each on Thursday.