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US$7.8 billion steel complex to be built in Ha Tinh
Taiwan’s largest diversified industrial company, Formosa Plastics Group, has been licensed to build a US$7.8 billion steel complex in central Ha Tinh province’s Vung Ang Economic Zone, according to the zone’s management board.
This is the biggest foreign direct investment (FDI) project licensed in Vietnam to date.
According to Formosa’s feasibility report submitted to the Prime Minister, the first phase of the project will include the building of a port and a steel mill which is designed to produce around 7.5 million tonnes a year. The first phase’s investment is estimated at US$7.879 billion.
The company also expects to increase the port’s handling capacity to between 55 to 60 million tonnes a year and the steel mill’s capacity to 15 million tonnes a year in the second phase.
* Since the beginning of the year, steel imports have reached nearly 450,000 tonnes, an increase of 150 percent compared to the same period last year, according to the Vietnam Steel Association (VSA).
In addition, Vietnam has also imported nearly 1.8 million tonnes of steel ingots, costing almost US$1.2 billion.
The VSA has confirmed that Vietnam will be able to maintain its supply of steel until the third quarter of this year despite recent reports that the country would face a steel shortage in the next two months.
VOV
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