Monumental Manufacturing Milestone, Magnificent Metal Marvel

Vietnam embarks on a transformative industrial journey as Xuan Thien Group inaugurates its largest green steel complex, sprawling across nearly 370 hectares in Nam Dinh’s Nghia Hung District. This colossal infrastructure project is set to redefine steelmaking in Vietnam by amalgamating cutting-edge green technologies with high-volume production capacity. The primary plant alone will produce 7.5 million metric tons of green steel annually, underscoring Vietnam’s ambitions to join the global vanguard in sustainable metallurgy.

Diverse Product Portfolio, Distinctive Design Dynamics

The complex’s twin plants will produce an array of specialized steel products catering to various strategic sectors. The first facility, occupying roughly 285 hectares, will manufacture hot-rolled coil steel plates, high-strength automotive steel sheets, weather-resistant steel for container fabrication, and commercial-grade sponge iron. The second plant, on approximately 84 hectares, will utilize electric arc furnace technology to recycle scrap steel, producing 2 million metric tons of finished steel per annum. The integration of primary steel production and scrap recycling creates a synergistic approach that optimizes resource utilization and environmental sustainability.

Technological Triumphs, Transformative Thermal Techniques

Rejecting traditional coke-based blast furnace methods notorious for high carbon dioxide emissions, the complex pioneers the use of liquefied natural gas as a reductant in iron oxide processing. This thermochemical innovation significantly curtails CO₂ emissions compared to coke. Furthermore, Xuan Thien Group plans a phased transition to hydrogen-based direct reduction, a breakthrough technology employing hydrogen gas to reduce iron ore without carbon emissions. This evolution is projected to cut carbon dioxide emissions by as much as 86%, aligning with global climate action goals and positioning Vietnam as an eco-industrial leader.

Capital Commitment & Construction Cadence

With a combined capital expenditure of approximately $3.84 billion, the project represents one of the largest industrial investments in Vietnam’s history. The primary green steel plant accounts for nearly $3.45 billion, while the secondary recycling facility entails an additional $392 million. The project is segmented into three development phases, scheduled for completion by June 2030. The construction timeline prioritizes deployment of state-of-the-art automated machinery, digital control systems, and energy-efficient infrastructure to maximize operational excellence and sustainability.

Economic Enrichment & Employment Expansion

The complex is poised to inject roughly $785 million annually into Vietnam’s State budget through taxes and royalties once fully operational. It will generate over 21,000 direct and indirect jobs spanning skilled labor, engineering, environmental management, and administrative roles. This employment surge is expected to catalyze ancillary economic activities in Nam Dinh and surrounding regions, elevating living standards and fostering inclusive socio-economic development. The project exemplifies the synergy between industrial growth and community empowerment.

Governmental Guidance, Green Governance & Grassroots Gains

Deputy Prime Minister Le Thanh Long accentuated the national and regional importance of the project at the groundbreaking ceremony. He lauded the private sector’s proactive engagement in national development, aligned with Party and State sustainability frameworks. The government has mandated rigorous legal compliance, vigilant environmental safeguards, and concerted efforts to enhance the well-being of local communities impacted by construction and operation. This oversight ensures the project adheres to Vietnam’s commitments under international environmental treaties.

Construction Cadence & Technological Tenacity

Authorities have called for accelerated construction progress using modern engineering methodologies, including Building Information Modeling and modular prefabrication. Contractors and consultants are tasked with deploying advanced safety protocols, minimizing ecological disturbance, and implementing continuous quality control. The focus on resource optimization and innovative construction technologies seeks to ensure the project’s early operationalization, maximizing return on investment and expediting socio-economic benefits for the region.

Decarbonization Drive & Emission Economies

Replacing coke with liquefied natural gas reduces particulate matter and sulfur oxide emissions in addition to cutting carbon dioxide output. The planned hydrogen direct reduction represents a paradigm shift by using green hydrogen produced via renewable energy sources to replace fossil fuels. This technological leap is anticipated to transform Vietnam’s steel industry into a model of decarbonization. By setting a new environmental benchmark, the complex supports Vietnam’s commitments under the Paris Agreement and advances Southeast Asia’s green industrial agenda.

Strategic Synergies & Sustainable Supply Chains

Beyond production, the complex incorporates forward-looking procurement policies prioritizing local raw materials and renewable energy inputs to foster sustainable supply chains. Collaborative partnerships with Vietnamese mining operations and renewable energy producers will secure a stable flow of eco-friendly inputs. This integrated approach reduces dependence on imported fossil fuels and raw materials, reinforcing Vietnam’s industrial resilience amid global market volatility.

Key Takeaways:

• Xuan Thien Group initiates Vietnam’s largest green steel complex with a combined investment of $3.84 billion and a total production capacity of 9.5 million metric tons annually.

• Innovative use of liquefied natural gas and planned hydrogen direct reduction technology will slash carbon dioxide emissions by up to 86%.

• The project is forecasted to create over 21,000 jobs and contribute approximately $785 million annually to the State budget by 2030.