Top 3 FDI Enterprises in Vietnam's Steel Industry in 2023

Top 3 FDI Enterprises in Vietnam's Steel Industry in 2023

BlogDate: 02-10-2023 by: Ngoc Cam

Vietnam's steel industry is one of the country's most critical economic sectors, and foreign direct investment (FDI) plays a crucial role in its development. The three largest FDI enterprises in the industry are Formosa Ha Tinh, Posco Yamato Vina, and Pomina. These companies invest heavily in new production facilities, technology, and infrastructure, helping drive the industry's growth and competitiveness. 

1. Formosa: receiving total FDI investment capital of USD 7,879,060,000 from Taiwan

Formosa Steel Joint Stock Company (FHS) under Formosa Plastics Group of Taiwan is currently one of the largest FDI enterprises in Ha Tinh province. FHS was granted a construction permit on June 12, 2008. The Iron and Steel Complex investment project and Son Duong Deep-Water Port is one of Vietnam's most significant FDI projects, with a charter capital of 5.5 billion USD total investment capital of 12,787 billion USD.

The project has a total area of 3,318 ha, of which the land area is 2,025 ha, and the water surface area is 1,293 ha. The company's principal shareholders include Taiwan (China) plastic manufacturing group Formosa Plastic, China Steel (CSC), and JFE Steel Company (Japan).

In addition, Formosa also has many of the most significant FDI projects in the steel industry, such as the Vung Anh industrial park (Ha Tinh province), attracting 152 projects, including 56 foreign-invested projects (including 1 project investment in the form of BOT) with registered capital of more than 16 billion USD and 96 domestic investment projects with a registered capital of 55,234,020 billion dongs.


2. Posco Yamato Vina: Received total FDI investment capital of USD 1,128,000,000 from Korea

Posco Yamato Vina Steel Joint Stock Company is a joint venture between Korea's Pohang Iron and Steel Company (51% stake) and Japan's Yamato Holdings (19% stake), specializing in the production of hot rolled section steel and sheet pile steel. In 2020, Posco Yamato was the first company to produce wide H-shaped steel in Vietnam. Currently, Posco is operating a steel mill in Ba Ria - Vung Tau with a capacity of 1 million tons per year and producing section steel with a capacity of 500,000 tons per year.

By the end of 2022, Vietnam has attracted 142 countries and territories to invest, including South Korea leading the top 1 with a total registered capital of more than 81.3 billion USD with nearly 9,500 projects. Accordingly, Posco Yamato is a Korean FDI enterprise with a total investment capital of 1,128,000,000 USD and a charter capital is 451,000,000 USD.


3. Pomina: sold 20% shares to Nansei Steel Company

At the 2023 General Meeting of Shareholders, Pomina (POM) announced strategic cooperation with Nansei Steel Company based in Chiba, Japan. Nansei invested in POM and became a strategic shareholder with a foreign ownership ratio below 65%.

Viet Steel Manufacturing and Trading Co., Ltd is Pomina's largest shareholder, with an ownership rate of more than 53.3% of capital. If the cooperation "mission" between Pomina and Nansei Steel is successful, Nansei will become POM's second-largest shareholder, holding 20% of the shares, equivalent to 20 million USD.

In the long run, the orientation of the business is to invest in depth towards sustainable development. With many years of industry experience, POM is one of the few manufacturers that owns the Consteel steelmaking technology chain, which is entirely closed and synchronous.


FDI enterprises in the steel industry have many advantages in overcoming the world economic crisis and stabilizing production activities. This also brings "huge" investment capital into the technology chain system, improving product quality and opening export opportunities to many international markets.