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Ground broken on largest steel and deepwater seaport complex
Vietnam’s biggest-ever foreign direct investment project will become one of Southeast Asia’s largest steel mills and an employer of 10,000 locals.
Work on the steel mill and Son Duong deep-water seaport complex began Sunday in the central province of Ha Tinh.
Formosa Heavy Industries Corp., based in China’s Taiwan, will pump around US$8 billion into building Vietnam’s largest steel complex in Vung Ang Economic Park in Ha Tinh Province.
he expected annual capacity of the mill will be 7.5 million metric tons and the cost of the first phase of construction, expected to take four years, is estimated at some $7.87 billion.
Ha Tinh authorities said the plant, once fully operational, was expected to create around 10,000 jobs for local people.
The plant’s capacity will be doubled in the second phase of the steel mill, which will be among the 15 biggest steel plants in the world.
Initially, materials for the mill will be imported from the world’s major iron ore suppliers, such as Brazil’s CVRD and Australia’s Rio Tinto and BHP Billiton.
The plant will eventually source iron ore from Ha Tinh Province’s Thach Khe Mine.
The Son Duong deep-water seaport will be capable of handling vessels weighing up to 300,000 DWT (deadweight tons).
The project, the largest foreign direct invested (FDI) project in Vietnam, was licensed late last month.
At the ground-breaking ceremony Sunday, Prime Minister Nguyen Tan Dung praised the efforts of Formosa, the Ha Tinh provincial administration and other agencies involved for making the project possible.
PM Dung told the Taiwanese investor to expedite the progress of the project and asked Formosa to boost employment support for locals during the construction.
Dung asked the Ha Tinh government to ensure favorable conditions for the investor.
He stressed the importance of the site clearance, the efficient relocation of about 1,800 residents and the security of the project site.
Formosa Heavy Industries Corp., set up in 1954, has many plants around the world, including in the US, China and Vietnam.
Ongoing investment appeals
The Ha Tinh provincial administration has said it would roll out the red carpet for property developers who invest in the Vung Ang Economic Park.
Local authorities said both Laos and Thailand were easily accessible from Vung Ang as the economic area is on a national highway that connects to the Cau Treo and Cha Lo border gates to Laos and Thailand.
The area’s main industries are metalwork, engineering and shipyard projects.
At the end of 2007, there were 29 projects registered at the Vung Ang Economic Area with a total investment of VND45 trillion (US$2.9 billion).
VOV
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