Billionaire Tran Dinh Long affirms: Not participating in high-speed railway investment, only focusing on steel production

Chairman of Hoa Phat Group Tran Dinh Long is confident that rail steel products are competitively priced compared to imported goods and expects a "once in a thousand years" opportunity to build the railway industry.

On May 29, Hoa Phat Group 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.

Mr. Tran Dinh Long, Chairman of Hoa Phat Group shared: Currently, in the world , more than 90% of rail manufacturers for high-speed trains use equipment from SMS - a leading global enterprise in this technology field.

Currently, only a few large steel corporations in the world can produce high-speed railway steel such as Voestalpine (Austria), JFE (Japan), Baosteel (China), JWS Steel, etc.

Responding to the question of PV. VietNamNet about the price competitiveness of this product with foreign enterprises, Mr. Tran Dinh Long said that participating in the production of high-speed rail is only a part of Hoa Phat's overall strategy. All of Hoa Phat's products have previously competed well in the market thanks to being placed in a value chain and following consistent principles of quality, technology and economic efficiency.

Mr. Tran Dinh Long, Chairman of Hoa Phat Group

“We are confident that the rail product, as a new link in this value chain, is also completely competitive. This is something that Hoa Phat has tested and verified through actual test results. We are sure of that,” Mr. Tran Dinh Long confidently said.

Responding to VietNamNet's question about the current unclear investor of the North-South high-speed railway project and the basis for the project investor to choose Hoa Phat steel in the future, Mr. Long said: Hoa Phat does not wait for orders to start production. We proactively produce high-quality steel products, not only for high-speed railways but also for construction projects, which is the traditional strength of the group.

“If the product is good and the price is reasonable, customers will come to it. This is not a 'chicken and egg' story,” Mr. Tran Dinh Long affirmed.

“We are not doing anything illogical or uneconomical,” the Chairman of Hoa Phat Group emphasized when talking about the project to produce steel rails and profile steel. “The focus of the project is profile steel - a product that is in great demand from fields such as wind power, solar power, oil and gas. I am even worried that we will not be able to supply it in time.”

He affirmed that Hoa Phat does not “put all its eggs in one basket”, because shaped steel and rail steel not only serve high-speed railways but can also be used for urban railway projects and for export.

“This project is 700,000 tons in scale, equivalent to about half a billion USD - a number not too big to worry about,” the USD billionaire expressed, “Hoa Phat will hire foreign experts, ready to accept all necessary costs to ensure quality and progress.”

It is expected that the project will have its first product in the first quarter of 2027.

SMS group will design, supply and install rail and special steel production lines for Hoa Phat.

Does Hoa Phat want to invest in high-speed railway project?

Mr. Tran Dinh Long said: Just 2-3 days after THACO proposed to be the investor of the high-speed railway project, many people called me and asked: "Vingroup and THACO want to do it, but will Hoa Phat participate?" I would like to clarify: Hoa Phat has always been consistent in doing what it is strong at. We only focus on supplying iron and steel - the part where we have the most strength.

Mr. Tran Dinh Long shared: I agree with the view of Mr. Tran Ba ​​Duong, Chairman of THACO, that the North-South high-speed railway project is a "once-in-a-lifetime opportunity" to form a railway industry in Vietnam. In fact, China has built a railway industry from the first project. Up to now, they have a complete industry.

Mr. Long emphasized: Building a high-speed railway project is not just about building a route but also about creating a new industry. If the Government does not have a policy of priority and incentives, this opportunity will never come again.

After the issuance of Resolution 68 on private economic development, Hoa Phat leaders believe that private enterprises have more conditions to participate in large projects. It is important to ensure quality, progress and learn from previous projects, which were delayed two or three times longer than planned.

“In my opinion, both state-owned and private enterprises can do it. But if private enterprises do it, it will be better and more effective,” Mr. Long stated his opinion.

Source: https://vietnamnet.vn/ty-phu-tran-dinh-long-hoa-phat-khong-lam-dieu-gi-phi-logical-phi-kinh-te-2405990.html