Hoa Phat and SMS Group Join Forces to Launch Vietnam’s First High-Speed Rail Track Production Line

Vietnamese steel giant Hoa Phat Group has partnered with Germany’s SMS Group to establish the country’s first high-speed rail track production line.

While the deal is aligned with Vietnam’s $67 billion high-speed railway ambitions, it also reflects a deeper strategy: positioning Vietnam as a regional export hub for premium-grade steel rails. The new line, with an annual capacity of 700,000 tonnes, will be installed at Hoa Phat’s Dung Quat steelworks in Quang Ngai and is expected to be operational by early 2027.

The production facility will roll out steel rails up to 100 meters long, produced from low-impurity iron ore and enhanced by cutting-edge German technologies—including laser geometry control, ultrasonic defect detection, and automated hardening systems. These features will help Hoa Phat meet stringent quality standards from Europe (EN 3674), Japan (JIS E1120), and China (TB/T2344).

While the launch coincides with Vietnam’s long-delayed high-speed rail project—slated to cut Hanoi–Ho Chi Minh travel time from 35 to 5.5 hours—Hoa Phat’s venture is built for broader markets. The company aims to produce not only domestic supply but also export-ready rails, metro rails, and structural steel for ASEAN and beyond.

Chairman Tran Dinh Long emphasized that the plant will make Hoa Phat the only Southeast Asian firm capable of producing high-speed rail-grade steel, joining the ranks of global players like Voestalpine (Austria), JFE (Japan), and Baosteel (China).

Hoa Phat is also responding to Vietnam’s growing demand for locally produced high-grade steel in the railway, energy, and defense sectors. With a target capacity of 15 million tonnes per year and exports to 40+ markets, the group is poised to become a major force in premium steel supply chains across Asia.