When will the made-in-Vietnam high-speed rail for the North-South high-speed railway project officially be launched?

Hoa Phat achieved the highest after-tax profit in 3 years

Hoa Phat Group (HPG) has just reported its business results for the first half of 2025 with impressive figures. In the second quarter of 2025, Hoa Phat produced 2.5 million tons of crude steel, equivalent to the first quarter and up 10% over the same period in 2024. Sales of hot rolled coil (HRC), construction steel, high-quality steel and steel billets reached 2.6 million tons, up 9% over the previous quarter and 18% over the same period in 2024.

In the first 6 months of the year, Hoa Phat Group produced 5.1 million tons of crude steel, up 17% compared to the first 6 months of 2024. Sales of HRC, construction steel, high-quality steel and steel billets reached 5 million tons, up 23% compared to the first half of last year.

Of which, hot-rolled steel contributed 2.2 million tons, up 42% compared to the first half of 2024. Construction steel and high-quality steel of the Group recorded 2.5 million tons, up 11% compared to the first 6 months of last year. Hoa Phat holds the No. 1 market share in Vietnam in construction steel with 38%.

In the second quarter of 2025, Hoa Phat recorded more than VND 36,000 billion in revenue and VND 4,300 billion in profit after tax - the highest in 3 years. In the first 6 months of the year, the group achieved revenue of more than VND 74,000 billion, profit after tax reached more than VND 7,600 billion, up 5% and 23% respectively over the same period last year.

In 2025, Hoa Phat plans to achieve VND170,000 billion in revenue and VND15,000 billion in profit after tax. With the above results, after the first 6 months of the year, the group has completed 44% of the revenue plan and 51% of the profit after tax plan. The steel group and related products are the main contributors with nearly 90% to the Group's consolidated revenue.

Regarding the plan in the coming time, Hoa Phat will complete blast furnace No. 6, part of phase 2 of the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project in September 2025. After completion, the total steel output of the Group will reach a total of 16 million tons/year, including 9 million tons of hot-rolled coil steel, meeting 100% of the demand for this product in the Vietnamese market.

World leading high-speed train rail steel production technology from Germany

Regarding the production of high-speed train rail steel, at the end of May, Hoa Phat and SMS Group (Germany) signed a contract to supply technology and production lines for rail steel and shaped steel with a capacity of 700,000 tons/year.

SMS group will design, supply and install the production line of rail and special steel for Hoa Phat. This rail rolling process includes: Bloom & Beam Blank furnace; Rough rolling; Multi-purpose reverse rolling; Laser scanning system to automatically detect surface defects and product contours; Non-destructive steel quality control system (NDT); Finishing system to ensure optimal quality; Rail end tempering system and Synchronous rail hole drilling system.

All main equipment is manufactured in Germany with strict and synchronous quality control system, ensuring meeting the requirements for rail production for high-speed railways in Vietnam and around the world.

Technological breakthroughs in Vietnam's steel industry

According to information from Hoa Phat, this is the most modern production line system in Europe with a super flexible 4-roll rolling system, providing outstanding precision, ensuring consistent product quality according to international high-speed railway standards. Currently, 90% of the world's rail rolling lines use SMS group's technology and equipment.

The output products are special types of steel that no Vietnamese enterprise has been able to produce. With this investment, Hoa Phat Group will become the only enterprise in Southeast Asia that can produce steel rails for high-speed railways.

This factory will supply products for key national projects such as the North-South high-speed railway project, the Hai Phong-Hanoi-Lao Cai railway project, and many urban railway projects in Hanoi and Ho Chi Minh City. Hoa Phat expects to ship the first batch of rails for the high-speed railway in the first quarter of 2027.