|
Steelmakers fail to draw investment
The domestic steel industry is failing to attract much-needed investment, despite relatively good business results in 2010, said the Viet Nam Steel Association (VSA).
"In 2010, the industry developed further than expected," said VSA Chairman Pham Chi Cuong.
However, Cuong added, steel projects had shown many shortcomings. "These shortcomings must be reconsidered and adjusted to ensure sustainable and effective development in the coming time," he said.
Cuong said the sector's planning and its efforts to attract investors need to be improved.
While provinces have granted investment licences for many projects, there hasn't been adequate supervision over the progress of these projects.
"Some projects failed to follow initial plans in terms of both quality and quantity of steel projects," he said.
|
Steel prices up by VND500,000 per tonne
The Viet Nam Steel Association (VSA) said steel prices have jumped by VND500,000 (US$23) per tonne in comparison with the end of last month.
"Currently, the price of steel [excluding value-added tax] is around VND16 million ($762) per tonne in the northern region and VND17 million ($810) per tonne in southern provinces," said VSA Chairman Pham Chi Cuong.
Cuong said prices were slightly lower in the north due to fierce competition between steel producers.
"The high prices of raw material, high exchange rates and bank loan interest rates are the main reasons for the rise in steel prices," Cuong said.
Cuong also affirmed to Viet Nam News yesterday that speculation in the steel market was not a problem.
"Banking interest rates are now at a high level so no one would stockpile steel to wait for even higher prices, which have been caused by the devaluation of the dong," he said.
He also affirmed that steel prices would continue to rise in the coming days. | In response, the Ministry of Planning and Investment ordered provinces and cities to check on local steel projects. Weak projects would be scrapped.
To add to the challenges for the steel industry, the power sector has proposed to the Government that the steel sector ensures its own power supplies - this may involve steel companies investing in their own power plants.
"This proposal is reasonable as it will help the industry develop in a sustainable way", said Cuong.
But for the steel sector to this, their selection process for investors will have to improve.
Choosing investors, especially for foreign-invested projects, was a weakness in 2010, said Cuong.
VSA reported that some projects had their investment licences withdrawn last year after failing to carry out projects.
Many provinces were not careful when choosing foreign investors, many of whom had terminated their investments.
"Therefore they were not able to carry out the projects so the investment time would be lengthened; some of them were even scraped," said Cuong.
A lack of modern technology and the need to ensure environmental protection are also substantial challenges for the industry. "In Viet Nam, there is often no board of experts to check the quality and technologies of a project," said Cuong. "That's why project shortcomings are only discovered once the project is already underway."
vietnamnews
|
