The new company aims to meet the internal material needs of Vingroup's ecosystem while contributing to the development of Vietnam's heavy industry, Vingroup said in a press release on Monday.

VinMetal has an initial investment of VND10 trillion ($380 million), with plans to build a high-tech industrial steel production complex in Vung Ang, Ha Tinh province, central Vietnam. Phase 1 will have a capacity of around 5 million tons per year.

The company will focus on producing steel products for civil construction, including hot-rolled steel, high-strength steel, and specialized alloy steels for electric vehicles and high-speed transportation infrastructure.

Its flagship products will include high-quality sheet steel and stamped automotive body steel, as well as international-standard rails and structural steel for bridges, ports, and railways, targeting import substitution and future exports to regional markets.

VinMetal will initially prioritize supplying materials for Vingroup's core sectors such as Vinhomes real estate and VinFast electric vehicles.

The company also seeks to secure high-quality steel supply for major projects in industry, energy, and transportation currently under research and proposal, including the North-South high-speed railway, the high-speed rail linking downtown Ho Chi Minh City with its outlying former Can Gio district in southern Vietnam, and another between Hanoi and Quang Ninh province in the north.

In the long term, VinMetal aspires to become a leader in green steel production in Vietnam, applying carbon-reducing technologies and reusing energy from renewable sources. This will not only advance the domestic metallurgy industry but also promote the growth of Vietnam's heavy industry as a whole, according to the press release.

"VinMetal is not just a steel plant. It represents a strategic preparation for a modern, green, and sustainable infrastructure future for Vietnam. At Vingroup, we believe that proactively developing foundational industries will help our country enter a new growth era, where Vietnamese people master technology, materials, and the execution of national-scale projects,” said Nguyen Viet Quang, vice chairman and CEO of Vingroup cum CEO of VinMetal.

The establishment of VinMetal marks another milestone in Vingroup's development strategy across its five business pillars: industrials and technology, real estate and services, infrastructure, green energy, and social enterprises.

Belonging to the industrials and technology pillar, VinMetal also serves as a foundational element directly supporting the infrastructure pillar, where Vingroup is expanding investments in high-speed railways, bridges, ports, and logistics.

Domestic steel production will not only ensure material supplies for these large-scale projects but also strengthen Vietnam's heavy industry capabilities, enhance national competitiveness, and elevate Vietnam's global standing.

With this new step, Vingroup reaffirms its commitment to contributing to the nation, while advancing its industrial, energy, and infrastructure value chain toward sustainable and long-term prosperity for Vietnam, the release added.

With an investment capital of VND10 trillion ($380 million), VinMetal’s scale remains modest compared with Hoa Phat Group (HoSE: HPG), the country’s largest construction steel producer, which has a charter capital of about VND77 trillion ($2.92 billion).

However, among domestic steelmakers, Hoa Phat is seen as VinMetal’s closest peer in terms of product portfolio.

Hoa Phat is now the only Vietnamese company capable of producing hot-rolled coil (HRC), alongside Taiwanese-invested Formosa Ha Tinh Steel, based in the central province of Ha Tinh.

In May, Hoa Phat signed an agreement with Germany’s SMS Group under which the latter will provide the former technology and production lines for manufacturing steel rails and shaped steel, with an annual capacity of 700,000 tons.

The production lines are scheduled for completion within 20 months, with the first high-speed rail products expected to roll out in Q3/2027.

For Formosa Ha Tinh Steel, it mainly produces HRC and steel coil. Meanwhile, Pomina, another leading steel producer of Vietnam, focuses on construction steel, including rebar and wire rod products.