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Vietnam's first aluminium smelter begins production

Created at 14 Jul · 11:11 AM1 source↑ Market-relevant
IN SHORT

Vietnam's first primary aluminium smelter, the Dak Nong smelter, has produced its initial batch of metal. The facility, located in Dak Nong province, has a first-phase capacity of 150,000 tonnes per year, with plans to expand significantly by 2028.

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Key Numbers

150,000 t/yrDak Nong smelter first-phase capacity
300,000 t/yrSecond phase capacity target
450,000 t/yrFull design capacity target
1.37mn tVietnam alumina exports in 2025

Who's Involved

Dak Nong smelter
Vietnam's first primary aluminium smelter
Tran Hong Quan Metallurgical
Owner of the Dak Nong smelter

↳ Why This Matters

The start of production at Vietnam's first primary aluminium smelter marks a significant step in the country's industrial development, potentially altering regional supply dynamics and reducing import dependency for a key industrial metal.

Key facts

  • Vietnam's first primary aluminium smelter, Dak Nong smelter, has started production.
  • The smelter is located in the Nhan Co Industrial Park in Dak Nong province.
  • Initial capacity is 150,000 tonnes per year, with plans for expansion to 450,000 tonnes per year.
  • The project supports Vietnam's goal of an integrated aluminium value chain.
  • The smelter could reduce Vietnam's need for imported primary aluminium.

Vietnam's first primary aluminium smelter, the Dak Nong smelter, has commenced production, with its initial batch of metal produced in early July. Located in the Nhan Co Industrial Park in Dak Nong province, the facility's first phase has a nameplate capacity of 150,000 tonnes per year. Subsequent phases are planned to increase this capacity to 300,000 tonnes per year by early 2027, and ultimately to the full design capacity of 450,000 tonnes per year by late 2027 or 2028.

This development is a significant step in Vietnam's strategy to build an integrated aluminium value chain, leveraging the country's abundant bauxite reserves. Vietnam is already a notable alumina producer in Southeast Asia, having exported 1.37 million tonnes of alumina in 2025. The commissioning of the Dak Nong smelter is expected to boost domestic alumina consumption and potentially reduce the nation's reliance on imported primary aluminium.

Market participants are closely watching for the smelter to begin offering commercial volumes to the spot market, though it remains unclear when this will occur as the facility continues its ramp-up phase. The Dak Nong smelter is owned by Tran Hong Quan Metallurgical.

Frequently asked questions

Vietnam's first primary aluminium smelter, the Dak Nong smelter, is located in the Nhan Co Industrial Park in Dak Nong province.

The first phase of the Dak Nong smelter has a nameplate capacity of 150,000 tonnes per year.

The smelter is expected to reach its full design capacity of 450,000 tonnes per year in late 2027 or 2028.

The smelter represents a major step in developing an integrated aluminium value chain and could reduce Vietnam's reliance on imported primary aluminium.

What Happens Next

01The smelter is expected to reach its full design capacity of 450,000 t/yr by late 2027 or 2028.
02Market participants await the smelter's entry into the spot market with commercial volumes.

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Cadence
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How It Developed

The Dak Nong smelter in Vietnam produced its first batch of aluminium in early July.
The smelter has a first-phase capacity of 150,000 tonnes per year.
Future phases aim to increase capacity to 300,000 tonnes per year by early 2027 and 450,000 tonnes per year by late 2027 or 2028.
The project aims to develop an integrated aluminium value chain in Vietnam.
The smelter's commissioning could boost domestic alumina consumption and decrease reliance on imported aluminium.
Market participants await commercial volumes as the facility ramps up production.

Sources

T1
Vietnam's first Al smelter starts productionArgus Media

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