Lee & Man and Hokuetsu looking to invest $3 billion in Vung Ang EZ

17:49 | 13/09/2019
Despite promises that the $3 billion industrial complex proposed by the Lee & Man-Hokuetsu joint venture will create a breakthrough in foreign investment attraction for Ha Tinh province, authorities are mulling over environmental pollution risks.
lee man and hokuetsu looking to invest 3 billion in vung ang ez
Lee & Man and Hokuetsu outlined plans to invest in a $3 billion facility in Vung Ang Economic Zone

On September 10, at a meeting with the representatives of Ha Tinh People’s Committee and relevant authorities, Lee & Man Group from Hong Kong and Hokuetsu from Japan drew up their plan to develop a $3 billion industrial complex in Vung Ang Economic Zone.

Accordingly, the complex would include a deep-sea port with the capacity of receiving 300,000 tonne ships as well as a logistics centre to serve the transportation of dry goods between Vietnam, Laos, and Cambodia. Besides, the joint venture would develop a paper complex, including a 1 million tonne tissue paper manufacturing plant and a plant manufacturing supporting equipment for the three other projects.

The industrial complex is expected to cover an area of 6,000 hectares, 1,400ha of which would be taken up by factories and 600ha by the logistics area. The investor will operate the facility for 50 years. The construction will be divided into two phases and last for four years from the time the investors receive the investment registration certificate. The first phase would be implemented in 2019-2021 and the second phase in the 2021-2023 period.

The investors claimed that the project would be one of Southeast Asia's largest industrial complexes related to paper manufacturing and would generate 3,000 jobs as well as contribute approximately $150 million to the state budget each year.

The investors also promised to equip the complex with modern technology lines and that all environmental regulations would be fully met.

Responding to the investors, Duong Tat Thang, deputy chairman of Ha Tinh People’s Committee, said, “The land area required for the project and the generated employment are not warranted by the investment scale. Besides, during the presentation, the investors were not clear enough about their plans to develop the seaport and the logistics centre, so it is difficult to formulate a clear picture of the complex.”

In addition, according to director of Ha Tinh Department of Planning and Investment Tran Tu Anh, paper production is not a sector which the province is prioritising in investment attraction to in Vung Ang EZ. Instead, Ha Tinh is looking for investors in the supporting industry and developers for its port and bridge system.

Leaders of the province and related authorities also cautioned that Ha Tinh will not trade its environment for economic growth. They directed the investors to prepare more careful studies about the material, technology, and land to be used for the project and submit an official document addressing provincial leaders’ concerns.

By Ha Vy

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