Formosa, the integrated steelmaker funded by Taiwanese company Formosa Plastics Group, in conjunction with Japanese steel heavyweight JFE Steel Corporation, recently started its trial run on 24 December 2015.

Flushed with an investment capital of $10.5 billion, many initially questioned the expenditure and inexperience of its parent company, both in relation to steel and geography.

But since the first batch of hot rolled coiled steel was produced in December, other Vietnamese steel producers have been eyeing Formosa with a bit more apprehension, with some analysts fearing for domestic steel companies once Formosa officially begins production in 2016.

The steel plant is expected to have a capacity of 7.5 million tonnes, 12 times higher than the next largest steel producer in Northern Vietnam, Thai Nguyen Cast Iron & Steel Mill.

The future of the plant seems to be headed up in a large way, with capital expected to soar to $26 billion, and production capacity expanded to 22.5 million tonnes of steel per year.

Despite their economic and manufacturing might, Formosa has maintained that they will not compete with domestic manufacturers, instead focusing on producing ingot steel and steel used in industrial production, rather than the structural steel existing mills produce.