Hoa Phat Proposes Halting Steel Project Research in Dak Lak

Hoa Phat Group, Vietnam's leading steel producer, has proposed halting the research for its integrated steel complex project in the Nam Phu Yen Economic Zone, Dak Lak Province, under the current plan, and redirecting resources to the Hoa Tam Industrial Park. The group had been exploring investment opportunities in the Nam Phu Yen Economic Zone, particularly in the Hoa Tam Industrial Park, for its steel complex project from early 2022 to June 2026. However, since June 2026, considering market fluctuations, increased costs associated with adjustments to investment scale, progress, and plans, as well as impacts on land acquisition and regional development plans, they have decided to revise the original plan. Hoa Phat assesses that continuing the project under current market conditions would not yield investment efficiency commensurate with the required resources and risk control levels. The planned project was to have a total investment of VND 86 trillion (approximately $3.5 billion) and a designed capacity of 6 million tons per year, with the first phase reaching 3 million tons per year. The company intends to shift resources to alternative plans that are more feasible, flexible, and sustainable if the Dak Lak provincial authorities approve the cessation of research for the steel project. Specifically, they propose prioritizing the development of Hoa Tam Industrial Park and attracting secondary projects, focusing on enterprises with strong financial capacity, technology, and market access, in line with the province's development plans. Hoa Phat also suggests exploring cooperation with capable industrial investors to implement projects that align with the advantages of the Nam Phu Yen Economic Zone in terms of scale, technology, and infrastructure needs. The group also requests continued cooperation with the province in processing remaining procedures and tasks for ongoing projects, and in agreeing on methods to handle matters related to land, land acquisition, and the resources the group has already committed. One of the projects Hoa Phat is currently focusing resources on is the Hoa Tam Industrial Park (Phase 1) infrastructure construction and business project. For this project, some procedures such as land use purpose conversion, detailed industrial park planning, fire prevention and fighting design approval, environmental permit applications, and feasibility studies have been partially completed. The total area of the industrial park is approximately 491.87 hectares, of which about 75.3% (370.19 hectares) has been cleared. Regarding the Bai Goc Port construction project, Hoa Phat reports that detailed construction planning (1/500), environmental impact assessment, onshore facility implementation, and fire prevention and fighting design approval have been completed. The onshore portion of the project, approximately 64.9 hectares, has achieved 100% land clearance. Under Vietnam's one-party system, large-scale industrial projects are closely linked to national economic strategies, and their decisions are significantly influenced by political considerations. Changes in investment plans by major corporations like Hoa Phat can impact regional economies and employment. Furthermore, Vietnam has been strengthening efforts to reduce economic dependence on China and diversify supply chains in recent years, making domestic industrial infrastructure development a continued priority. Source: The Saigon Times