What is reshaping Vietnam’s aluminium industry landscape? Insights from SMM AICE’s visit to THQ

This image has been obtained from SMM's official website

On July 23, 2026, a delegation from Shanghai Metals Market (SMM) conducted an on-site visit to TRAN HONG QUAN METALLURGY Co., Ltd. (THQ) in Vietnam. The delegation included:

• Logan Lu, CEO of SMM
• Cason Lou, Director of Aluminium Processing, Marketing Department
• Lexi Chen, Key Account Manager for Overseas Information Sales
• Khai Yuen Chin, Senior Overseas Aluminium Analyst

The two sides held in-depth discussions on the development of Vietnam’s primary aluminium projects, domestic aluminium supply capacity, supporting industrial infrastructure, and future market strategies.

The visit also provided a clearer picture of the changes taking place across Vietnam’s aluminium industry. A new industrial landscape is gradually emerging—one built on resource advantages, driven by breakthroughs in primary aluminium production, and extending further into downstream processing and manufacturing.

A landmark development: Vietnam begins producing its own primary aluminium

On July 27, Vietnam’s first batch of aluminium ingots with a purity of 99.71 per cent was successfully produced at THQ’s Dak Nong aluminium smelter project. The facility is a pilot plant using electrolytic smelting technology to produce primary aluminium.

This means that Vietnam now possesses not only abundant bauxite resources and alumina production capacity, but also the capability to produce primary aluminium. For the first time, the country has established a complete “bauxite–alumina–primary aluminium” value chain.

The significance of this development goes beyond the addition of a new aluminium smelter. More importantly, it indicates that Vietnam is beginning to move away from a resource-export-oriented model and toward higher-value materials production and industrial processing.

Three major changes are reshaping Vietnam’s aluminium value chain

• 01 From resource exports to domestic processing

Vietnam holds significant bauxite reserves, with particularly strong resource advantages in the Central Highlands.

In the past, Vietnam largely relied on alumina exports while continuing to import substantial volumes of primary aluminium. Going forward, a greater proportion of domestically produced alumina is expected to enter the electrolytic smelting process, allowing more industrial added value to remain within Vietnam.

This transition is also consistent with Vietnam’s broader efforts to promote the deep processing of mineral resources and upgrade its manufacturing sector.

• 02 From individual projects to an integrated industrial value chain

The supporting infrastructure developing around Vietnam’s alumina and aluminium projects includes:

• Reliable power supply systems
• Supporting industrial park infrastructure
• Raw material supply networks
• Downstream aluminium processing capacity
• Port and logistics facilities

Together, these factors support more than the operation of a single factory—they create the foundation for an entire industrial cluster. Vietnam is gradually establishing an interconnected industrial structure spanning resource development, smelting, processing, and manufacturing.

• 03 From cost advantages to regional supply chain advantages

For companies evaluating Vietnam today, its importance lies not only in production costs but increasingly in its strategic position within regional supply chains.

Vietnam connects with China’s supply chain, the broader ASEAN market, and export routes to Europe and the United States. It is also attracting the relocation and expansion of industries including new energy, electronics, and automotive manufacturing.

This is why a growing number of international companies are reassessing the strategic value of Vietnam’s aluminium industry. It also represents an important window of opportunity for Chinese aluminium companies seeking to expand into the Vietnamese market.

Tran Hong Quan Metallurgy Co., Ltd.

Founded in 2000, Tran Hong Quan is a major privately owned diversified industrial group in Vietnam, with businesses spanning energy, trading, hospitality, metallurgy, and other sectors. Its subsidiary, Tran Hong Quan Metallurgy Co., Ltd. (THQ Metallurgy), is the investor and developer of the Dak Nong aluminium smelter project.

The Dak Nong project is regarded as Vietnam’s first primary aluminium production project and represents a critical link between the country’s alumina resources and its downstream aluminium processing and manufacturing industries.

Once operational, the project will produce aluminium ingots, aluminium slab ingots, billets, and other products. It is expected to contribute approximately USD 700 million annually to the local economy, significantly strengthen Vietnam’s domestic primary aluminium supply capacity, and reduce the country’s dependence on imported aluminium.

In 2026, the project completed its first power delivery and entered the integrated commissioning stage, marking a critical step toward the commercial production of primary aluminium in Vietnam.

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Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.