Trade deficit of Vietnamese steel industry has amounted to US$3.225 billion in the year to date and the value tends to rise in the coming years because the huge demand for a variety of steel, especially prestressed steel used in construction of infrastructure, railways, ships, hydropower plants and military works. Prices of imports are quite high. To ease this hard math, Asia Star Investment Joint Stock Company, a member of the Royal Group, planned to build a big sponge iron and presstressed steel production plant to form the first closed metallurgy complex in Vietnam in Thanh Son district, Phu Tho province.
General Director Hoang Thu Dinh said: "The Vietnamese mining industry has downplayed its role in the country’s social and economic development for decades. Notably, despite of excessive supply of some kinds of steel made by local companies, users still have to import similar items from foreign countries because local steelmakers used backward technologies and their products thus failed to meet their technical specifications. To set up big projects using advanced technologies, there is a growing trend of forming joint ventures with foreign partners, especially Ukrainian companies with advanced metallurgical science and technology. This is one reason why we wish to choose Ukraine as our investment partners."
He added that Ukraine is very strong at heavy industry, metallurgical industry and manufacturing industry. In the Soviet time, many Vietnamese people studied and worked at Ukrainian schools and institutes and they are now important managers and scientists in Vietnam. On the basis of good relations of the two countries, the business communities of Vietnam and Ukraine will continue to take advantage of opportunities to enhance information exchange and understand demands and difficulties of each other to form cooperation.
The company’s sponge iron and prestressed steel production plant caught the attention of the Ministry of Industry and Trade, the Ministry of Science and Technology, and leaders of Phu Tho province after the 13th meeting of the Vietnam - Ukraine Intergovernmental Committee for Economic, Commercial, Scientific and Technological Cooperation from October 1 - 2, 2012. In July and August 2012, Ukrainian specialists visited and surveyed some ore mines in Tan Son and Thanh Son regions. They assessed potentials and strengths for the formation of a closed metallurgical complex with an annual capacity of 120,000 tonnes of ores a year. The complex is environment-friendly. When the sponge iron plant is in operation, it will develop necessary supporting industries like construction: construction material factories, refractory material plants, anti-erosive material plants, prestressed steel plants, and cable factories. All will form a modern, environment-friendly metallurgical industrial complex meeting European standards. It will create jobs for thousands of local workers.
On the other hand, to prepare capital and receive technology from Ukrainian experts, the company successfully pooled personal assets of shareholders and invited Vietnamese financial experts with deep working experience in international financial groups like European banks to plan the strategy and capital plans. As soon as the project is approved, the company will cooperate with training mining and metallurgical schools in the country to recruit production-operating engineers guided by Ukrainian experts. Quarterly, the company will send engineers to Ukrainian metallurgical research centres for acquisition of new know-how.
Once in completed and put into operation, the plant will churn out high-quality products of affordable price. Products will be used to make components of hoisting equipment, cranes, automobile parts, and others. Importantly, the company will export its products to potential markets in Southeast Asia which are importing prestressed steel from China, South Korea and other countries and help improve the balance of import and export of Vietnamese steel industry.
This plant has an estimated investment capital of more than US$5 billion. This project is highly appreciated because it lies in the middle of many ore deposits and catches the attention of authorities. Anyway, a large project powered by advanced manufacturing technology like this needs the support of the State, especially the support and cooperation with foreign partners.
Nguyen Hanh
Vietnamese
