A Historic Convergence of Industry & Energy Titans

The morning of May 27, 2025, was marked by a historic event in Hanoi as two of Vietnam’s largest industrial forces, Hoa Phat Group and Petrovietnam, came together to cement their partnership with a comprehensive cooperation agreement. Held at Petrovietnam’s corporate headquarters, the ceremony brought together high-ranking officials including Mr. Tran Dinh Long, Chairman of Hoa Phat Group, Mr. Le Manh Hung, Chairman of Petrovietnam’s Members Council, CEO Nguyen Viet Thang, alongside senior representatives from both organizations’ subsidiaries. This agreement represents a strategic milestone that sets the tone for a new era of integrated growth in Vietnam’s industrial and energy sectors.

Harnessing Complementary Strengths for National Advancement

Hoa Phat and Petrovietnam stand as pillars of Vietnam’s economic infrastructure. Hoa Phat, recognized as the largest steel manufacturer in Vietnam and Southeast Asia, boasts two state-of-the-art integrated steel plants in Hai Duong and Quang Ngai provinces. By the close of 2025, Hoa Phat’s steel production capacity is projected to reach an impressive 15 million metric tons annually, with a focus on hot-rolled coils and specialized steels for industries such as mechanical engineering, oil & gas, and energy. On the other hand, Petrovietnam commands the largest energy industrial ecosystem in Vietnam, operating extensively in oil and gas exploration, refining, natural gas distribution, and renewable energy development. By combining these complementary strengths, the two corporations aim to create synergies that will elevate Vietnam’s industrial competitiveness domestically and globally.

Alignment with Government Policy & Economic Vision

This strategic alliance echoes Vietnam’s Resolution 68 of the Politburo, which emphasizes the vital role of the private sector in driving economic growth, innovation, and industrial development. The resolution encourages robust cooperation between state-owned and private enterprises to form powerful value chains that enhance productivity and market reach. By joining forces, Petrovietnam and Hoa Phat embody this vision, intending to scale up their operations and increase their capacity to compete in both domestic and international markets, reinforcing Vietnam’s position as an emerging industrial powerhouse in Southeast Asia.

Petrovietnam’s Role: Expanding Energy Sector Leadership

At the signing ceremony, Mr. Le Manh Hung highlighted that this comprehensive cooperation is a key strategic milestone. Petrovietnam, as a wholly state-owned enterprise, covers five main sectors: oil and gas exploration and production; gas industry services including natural gas, CNG, LNG, and LPG supply; refining and distribution of petroleum products; power and new energy industries; and technical services. This partnership with Hoa Phat not only consolidates Petrovietnam’s leadership in these sectors but also enables the group to expand into industrial steel production and sustainable energy technologies. Mr. Hung emphasized that the collaboration would foster innovation, operational excellence, and contribute to Vietnam’s energy security and industrial modernization.

Hoa Phat’s Vision: Sustainable Growth Through Strategic Partnership

Mr. Tran Dinh Long expressed his confidence that the cooperation would be implemented substantively, efficiently, and sustainably. Hoa Phat is prepared to back the strategic objectives with significant investments in steel manufacturing and related services. The group aims to supply high-quality steel products tailored for demanding sectors like oil and gas infrastructure, energy generation, and mechanical engineering. Hoa Phat’s advanced steel complexes use modern technology to enhance productivity while reducing environmental impact. This cooperation will further support Hoa Phat’s ambitions to expand its product offerings and enhance supply chain integration with Petrovietnam’s energy and chemical inputs.

Detailed Areas of Cooperation: Industrial & Energy Nexus

Under the agreement, the two corporations have committed to comprehensive collaboration across a wide spectrum of activities. Petrovietnam will supply natural gas, compressed natural gas, liquefied natural gas, and liquefied petroleum gas, which are crucial inputs for Hoa Phat’s steel production processes. Hoa Phat will reciprocate by providing specialty steel products, shipping containers, electrical appliances, and logistics services that support Petrovietnam’s oil and gas operations. This mutual exchange optimizes resource utilization and cost-efficiency. Moreover, both parties will engage in joint investments in infrastructure development, including ports, energy plants, and industrial parks, which are vital to supporting Vietnam’s broader industrial ecosystem.

Pioneering Sustainability & Technological Innovation

The partnership places strong emphasis on environmental responsibility and innovation. Both firms plan to invest in research and development initiatives targeting the steel sector’s carbon footprint. Projects include CO₂ capture and reuse technologies and the application of green hydrogen in steelmaking to replace traditional fossil fuel-based processes. This focus on decarbonization aligns with global climate goals and Vietnam’s commitment to sustainable development. Additionally, the companies will co-develop high-quality alloy steels for the energy and oil & gas sectors, promoting advanced materials that offer greater durability and performance, thereby supporting Vietnam’s energy infrastructure modernization.

Expanding Horizons: Renewable Energy, Industrial Centers, & Human Capital

Beyond immediate business synergies, the agreement foresees long-term collaboration in building integrated industrial-energy centers. These centers will combine steel production, energy supply, logistics, and technology transfer under one roof to maximize efficiency and innovation. Furthermore, the partnership envisions investments in renewable energy projects, including solar and wind power, helping Vietnam diversify its energy mix and reduce dependency on fossil fuels. Both groups will also invest in R&D, staff training, and technology exchange programs to build a skilled workforce capable of driving future industrial and energy advancements.

Key Takeaways:

• Hoa Phat and Petrovietnam signed a strategic comprehensive cooperation agreement to boost Vietnam’s industrial and energy sectors.

• The partnership supports Vietnam’s Resolution 68, fostering stronger collaboration between state-owned and private enterprises.

• Key initiatives include sustainable steel production with CO₂ capture, green hydrogen (H₂) use, and development of alloy steels tailored for energy industries.