Main materials for the project
The North-South high-speed railway will be one of Vietnam’s key transport projects in the future. When completed, it will not only be a modern means of transport but also contribute to promoting economic development, connecting regions, and creating new opportunities for industry, tourism and trade.
With a total route length of 1,541km, the investment in the Project is expected to create a construction market worth about 33.5 billion USD; including the national railway system, the urban railway will create a construction market of about 75.6 billion USD, vehicles and equipment of about 34.1 billion USD (locomotives, carriages of about 9.8 billion USD; signal information system and other equipment of about 24.3 billion USD).
Construction materials expert, Master Pham Ngoc Trung, said that to build a high-speed railway, a large amount of steel will be used for infrastructure works such as bridges, stations, rails, and other support systems. High-quality steel components will be required for the construction of stations, overpasses, tunnels, and other works.
Along with that, besides the main railway project, other urban development projects and ancillary works will also consume a large amount of steel, such as transportation systems, yards, and industrial parks along the railway line.
In addition, to operate high-speed railways, modern trains capable of reaching high speeds need to be manufactured with strong and safe steel structures. The domestic steel industry will have the opportunity to supply steel to companies manufacturing trains and related equipment.
Ship and equipment manufacturing has very high requirements for steel quality, such as alloy steel, stainless steel, corrosion-resistant steel, and bearing steel. This is a great opportunity for Vietnamese steel manufacturers to improve their production capacity of high-quality steel products.
"The North-South high-speed railway project will bring many opportunities for the Vietnamese steel industry. From increasing steel demand for infrastructure projects, ship manufacturing, operating equipment, to improving steel production and export capacity, this project can promote the steel industry to develop more strongly in the future" - Master Pham Ngoc Trung said.
Business ready
Vietnam's steel industry currently has the participation of diverse economic sectors from the State, FDI and private sectors. In which, the private sector and FDI account for a large proportion and are the driving force, deciding the market.
Large projects such as Formosa Ha Tinh, Hoa Phat, Dung Quat all use traditional blast furnace technology with modern design and technical equipment, large furnace capacity; closed production process, optimizing energy use; steel rolling lines are selected with advanced technology and high automation.
Previously, factories of POSCO Vietnam, China Steel & Nippon Steel Vietnam Joint Stock Company, or some private sector factories such as Ton Dong A, Hoa Phat cold rolling mill... were invested with modern technological equipment. The steel industry has focused on investing in large-scale projects, producing previously unavailable products such as hot-rolled steel plates, cold-rolled steel sheets...
At the recent seminar "Steel industry and Hoa Phat's health", Hoa Phat's CFO Pham Thi Kim Oanh said that the policy is to "use" domestically produced goods in bidding packages. The project is a source of pride for Vietnamese enterprises, including Hoa Phat, because the company is the leading company in the steel industry.
Dung Quat 2 project also produces steel of higher quality than high-speed train rails. This is the thin steel found in car tires, so it requires a high level of difficulty, but Hoa Phat has produced it. However, the group's current production output is still low, so many investors cannot see this.
In addition, Ms. Pham Thi Kim Oanh also shared that Hoa Phat Group Chairman Tran Dinh Long affirmed that in the past 3 years, Hoa Phat has researched the steel rail product line. Therefore, the production of steel rails for high-speed railways is completely within the group's capabilities.
According to the calculations of the consulting units, the project needs about 6 million tons of steel of various types. These are the types of steel that Vietnam can produce. If becoming the steel supplier for this project, Hoa Phat commits to ensuring the supply of enough 6 million tons of steel of various types to serve the project, especially high-speed rail steel and high-strength prestressed steel.
It is known that Hoa Phat also sent a document to the People's Committee of Phu Yen province asking for investment policy for a number of large projects in the province, including the Iron and Steel Complex project. This factory is expected to have high-speed rail steel products with common sizes from 50 - 100m, transported by rail instead of by road to the construction site.
Source: https://kinhtedothi.vn/duong-sat-toc-do-cao-la-co-hoi-cho-nganh-thep.html
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