In the context of shifting global supply chains and increasingly stringent environmental standards, Vietnam’s metal manufacturing industry is entering an unprecedented boom. Two “green steel” mega-projects worth nearly VND 185 trillion are creating strong momentum, laying the foundation for Vietnam to become a sustainable metal production hub in the ASEAN region.
Boost from Two Mega “Green Steel” Projects
Hòa Phát Dung Quất 2: Elevating Vietnam’s Steelmaking Industry
With a total investment of VND 85 trillion, the Hòa Phát Dung Quất 2 steel project has completed its first phase and is expected to commence trial operations in Q1/2025. Upon full completion by the end of 2025, the plant will increase its high-quality hot rolled coil (HRC) capacity to 8.6 million tons/year. The group’s total crude steel output is projected to reach 14.5 million tons annually, putting Vietnam among the top steel producers in Asia.
Nam Dinh Green Steel Complex: The Race for Technology & Sustainability
The nearly VND 100 trillion Nam Dinh Green Steel Complex, invested by Xuan Thien Group, will begin construction in Q3/2025. Utilizing CO₂-reducing smelting and rolling technologies, this project aims to lead green steel production to EU standards, directly competing with industry giants like Hòa Phát.
Digital Transformation – A Lifeline for Vietnam’s Metal Sector
While European and Japanese firms are investing heavily in metal 3D printing, AI, and cloud computing, Vietnamese manufacturers face urgent pressure to accelerate digital transformation or risk being excluded from global supply chains.
UK-based Alloyed is a prime example: the company recently raised £37 million to scale its additive manufacturing of metal parts, with 90% of its revenue coming from exports.
In Vietnam, experts say businesses that harness production data, optimize material usage, and trace carbon sources will retain long-term competitive advantages.
Global Steel Demand: Both an Opportunity and a Challenge
According to the World Steel Association, global steel demand is expected to recover slightly in 2025, reaching 1.815 billion tons, up 1.2%. India will continue to lead growth, while Europe and the U.S. will recover through green infrastructure investments.
Vietnam’s Growth Window: How to Make It Count
Three key factors will determine Vietnam’s ability to seize this opportunity:
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Producing high-quality HRC that meets environmental standards such as the EU CBAM and U.S. IRA.
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Localizing smelting and rolling technology to reduce costs and reliance on imports.
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Accelerating digital transformation across the value chain: from raw material management and blast furnace operations to logistics and exports
Outlook & Recommendations
With 10 million tons of added flat steel capacity in the next two years, Vietnam could emerge as a regional sustainable metal powerhouse. But to avoid the risk of “overcapacity without standards,” experts recommend:
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Investing in carbon-neutral steelmaking technologies (e.g. hydrogen, electric arc furnaces using scrap).
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Forming public-private alliances to research advanced materials such as ultra-strong steel and lightweight alloys targeting high-value niches.
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Partnering internationally with R&D centers in Europe, Japan, and South Korea to fast-track ESG standardization and digitization across the metal supply chain.
Conclusion: Green Steel & Digitalization – Twin Engines for Vietnam’s Metal Sector
As “green” and “digital” become the new global norms, those in Vietnam’s metal industry who adapt early will secure a lasting competitive edge — both domestically and within global post-pandemic, post-conflict supply chains.
Sekino, with its strategic investments in environmentally friendly manufacturing technologies and digital management systems, is steadily establishing its position in the premium stainless steel equipment segment. ESG-standardized processes and digitization across design, production, and logistics empower Sekino to meet the strict demands of international markets.
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