Sign up | Log in



Home >> Daily News >> Vietnam News  >> Commodities >>  Vietnam: Major steel project seen changing hands

NEWS UPDATES 27-28 May 2010

Vietnam: Major steel project seen changing hands

Related Stories

May 9, 2010
Vietnam’s rice shipments slightly down in 2009

April 29, 2010
Vietnam: Low prices put rice exports on a slow boat

April 12, 2010
Vietnam plans 2m tonnes of rice export in second quarte

March 6, 2010
Vietnam: High energy cost to push up cement prices

March 2, 2010
Vietnam steel firms to raise prices

February 25, 2010
Vietnam: Rice stockpile planned ahead of domestic price decrease

February 3, 2010
Vietnam: Low prices, stocks stunt coffee trade

Authorities in the central Vietnamese province of Ninh Thuan will likely revoke the license of the foot-dragging Cana Steel Complex, a huge project worth up to $9.8 billion, as both time and patience are running out, VietNamNet Bridge reported, quoting a provincial official.

Le Kim Hung, director of the province’s Department of Industry and Trade, said the province now had reasons to revoke the project license and hand it to another eligible investor as time for the investor Maju Stabil Sdn. Bhd, a unit of Malaysia’s Lion Group, has run out.

The province recently had meetings with some giant steelmakers to restart the project, but Hung declined to unveil the names of the new potential investors.

However, South Korea’s Posco Group and JFESteel Corporation, the second largest Japanese steelmaker, are two candidates the province is targeting, according to Dau Tu newspaper.

The Cana Steel Complex’s investors, namely Vietnam Shipbuilding Industry Group (Vinashin) and Maju Stabil Sdn. Bhd. under Malaysia’s Lion Group, began work on the steel complex in late 2008. The complex was to be developed over a 1,650-hectare area in Ninh Phuoc District in four phases between 2008 and 2025.

The complex was designed to have a capacity of 14.4 million tons of steel per year, including an initial output of 4.5 million tons per year in the first phase after 2011. Key products would be hot- and cold- rolled coils, steel plates, galvanized and coated coils, H- and I-beams, and pipes.

The project’s supporting facilities were to include two 1,450MW power plants and a seaport with an annual handling capacity of 50 million tons. The feedstock for the steel complex would be imported iron ores and domestic coke.

However, despite support from local authorities, the project has not made a move, sending many farming families whose land was redeemed into limbo. Many residents who had to leave to make room for the project have not yet been compensated, according to local newspapers.

Under Vietnam’s investment laws, the developers of major projects pay local authorities for the use of land, and in turn, local authorities allocate the money to the residents who have to move to allow for the project to proceed.


Comment on this Article. Send them to
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 





1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand