Taiwan&rsquos Formosa Heavy Industries Corp. July 6 began construction on a steel and sea port complex worth US$7.8 billion in the first stage, the largest foreign direct investment (FDI) project ever licensed in Vietnam so far, state media reported.
The breaking-ground ceremony saw the participation of Prime Minister Nguyen Tan Dung, who issued an order to kick off the Iron/Steel and Son Duong Port Complex located at central Ha Tinh province&rsquos Vung Ang Economic Zone.
In the project&rsquos first stage, the Taiwanese investor will build an iron and steel plant with an annual capital of 7.5 million tons and a deep-water seaport of 30 million tons per year, Vietnam News Agency said.
Construction for this stage of the iron and steel plant and the port is scheduled for completion within four and three years respectively, the agency said.
Once fully operational, the iron and steel is expected to provide jobs for nearly 10,000 laborers.
In the second phase, Formosa will pour an additional US$8 billion to double the iron and steel plant&rsquos capacity to 15 million tons per year and increase the port&rsquos annual capacity to 60 million tons to enable it to receive ships of 200,000-300,000 tons, the agency added.
Speaking at the ceremony, PM Dung wanted the Taiwanese company to speed up the project and asked the firm to boost employment support for locals during the construction.
Chairman of Formosa group Wang Wen Yen said the project, licensed late last month, the iron and steel factory would become the largest in all of ASEAN, and one of the 15 largest 15 in the world.
Formosa Heavy Industries Corp., set up in 1954, has many plants around the world, including in the U.S., China and Vietnam.
Vung Ang is located on a national highway that connects to the Cau Treo and Cha Lo border gates leading to Laos and Thailand.
As of late 2007, Vung Ang EZ attracted 29 projects worth VND45 trillion (US$2.9 billion), mostly focusing in the areas of metalwork, engineering, and shipyard projects, according to the local Saigon Times Daily.
Vietnam has two biggest steel reserves including Thach Khe in central Ha Tinh province with 544 million tons and the Quy Xa in northern Lao Cai province with 122 million tons. (Local sources)
Vietnamese
