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 Aluminum Processing, Marketing Department
• Lexi Chen, Key Account Manager for Overseas Information Sales
• Khai Yuen Chin, Senior Overseas Aluminum Analyst
The two sides held in-depth discussions on the development of Vietnam’s primary aluminum projects, domestic aluminum supply capacity, supporting industrial infrastructure, and future market strategies.
The visit also provided a clearer picture of the changes taking place across Vietnam’s aluminum industry. A new industrial landscape is gradually emerging—one built on resource advantages, driven by breakthroughs in primary aluminum production, and extending further into downstream processing and manufacturing.
A Landmark Development: Vietnam Begins Producing Its Own Primary Aluminum
On July 27, Vietnam’s first batch of aluminum ingots with a purity of 99.71% was successfully produced at THQ’s Dak Nong aluminum smelter project. The facility is a pilot plant using electrolytic smelting technology to produce primary aluminum.
This means that Vietnam now possesses not only abundant bauxite resources and alumina production capacity, but also the capability to produce primary aluminum. For the first time, the country has established a complete “bauxite–alumina–primary aluminum” value chain.
The significance of this development goes beyond the addition of a new aluminum 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 Aluminum 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 aluminum. 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 aluminum projects includes:
• Reliable power supply systems
• Supporting industrial park infrastructure
• Raw material supply networks
• Downstream aluminum 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 aluminum industry. It also represents an important window of opportunity for Chinese aluminum 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 aluminum smelter project.
The Dak Nong project is regarded as Vietnam’s first primary aluminum production project and represents a critical link between the country’s alumina resources and its downstream aluminum processing and manufacturing industries.
Once operational, the project will produce aluminum ingots, aluminum slab ingots, billets, and other products. It is expected to contribute approximately US$700 million annually to the local economy, significantly strengthen Vietnam’s domestic primary aluminum supply capacity, and reduce the country’s dependence on imported aluminum.
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 aluminum in Vietnam.
Join the Conversation at SMM AICE 2026
Connect with aluminum producers, processors, traders, manufacturers, certification organizations, industry associations and decision-makers from across Southeast Asia and the global market.
Explore aluminum pricing, primary aluminum supply, processing technologies, low-carbon development, CBAM compliance and new opportunities for regional cooperation.
Location: Ho Chi Minh City, Vietnam
Date: November 19–20, 2026
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