Biggest FDI project to be groundbroken this week

VGP - The construction of the Cà Ná Steel Complex, a US $9.8-billion joint-venture project between Malaysia’s Lion Group and Việt Nam Shipbuilding Industry Corporation (Vinashin), will be started on November 23.

November 21, 2008 4:10 PM GMT+7

Major products are cool-rolled steel, hot-rolled steel, steel plates, and plated steel

The project, the ever biggest of its kind, is located in Cà Ná, Ninh Phước District of the central province of Ninh Thuận. It covers 1,650 ha of land and 330 ha of sea area.

With the operational duration of 50 years since being licensed, the complex will yield 14.42 million tons of steel per year, providing 50,000 jobs.

The complex consists of blast-furnaces, oxygen-transmitting kilns, refining furnaces, hot-rolling and cold-rolling mills. In addition, there are power plants and a deep-water port.

The project is divided into four stages, lasting from 2008 to 2025.

In the first stage (2008-2010), requiring approximately US $2.75 billion, a complex with the capacity of 4.5 million tons of steel, two thermo-electric plants (1,450 MW in total) and a seaport with the loading/unloading capacity of 15 million tons per year will be put into operation.

Within a short period of time, eight steel joint-ventures have been licensed, valuing tens of billions of dollars. Foreign investors asserted that Việt Nam is a fertile land plot for international big steel corporations because it has many advantages, such as improved investment climate, stable economic growth, cheap labor force, investment incentives and domestic enterprises’ goodwill for cooperation.

By Kim Anh