Vietnam’s large-scale energy and mining projects will probably be the largest recipients of next years pledged US$9.2 billion foreign direct investment inflows, a senior official of Ministry of Planning and Investment was cited by Vietnam Investment Review as saying Monday.
General Director of the Foreign Investment Agency under the Ministry of Planning and Investment, Phan Huu Thang said energy and mining projects currently awaiting license for 2007 are Nghi Son oil refinery, Mong Duong thermal power plant, Thach Khe iron mining and steel refinery and Dak Nong bauxite mining and alumina refinery.
Japanese investors including Mitsubishi and Idemitsu are expected to invest in Nghi Son oil refinery, the second of its kind in Vietnam, located 200 km south of Hanoi.
In the initial plan of Nghi Son’s major project developer, state-owned PetroVietnam, the oil refinery will cost US$3 billion with annual capacity to produce 7 million tons of petroleum products.
The 1,200 MW coal-fuelled Mong Duong power plant, the largest of its kind in Vietnam, will be jointly carried out by Vietnam National Coal and Mineral Industries Group (Vinacomin) and the US’s AES, which officially signed agreements to set up the joint venture with 90 per cent held by AES.
The plant with estimated cost of US$1.4 billion will be implemented in the build-operate-transfer mode and is scheduled to be operational by 2011 in the northern province of Quang Ninh.
State-run Vietnam Steel Corporation (VSC), the developer of the estimated US$3.5 billion Thach Khe Iron mining and steel refinery is now picking up suitable foreign investors for the project in the central Ha Tinh province.
Meanwhile, South Korea’s Posco, China’s Bao Shan, Russia’s Everaz and India’s Essar and Tata have shown their interests in the Thach Khe mining deposit and building a 4.5 million ton hot rolled coil steel factory.
China’s Chalco, the US’s Alcoa and Australia-UK’s BHP Billiton would like to be involved in Dak Nong bauxite mining and alumina refinery projects in the central highlands region or Tay Nguyen.
Vinacomin has so far signed agreements with foreign partners to carry out multi-million dollar projects in the field.
Thang also reaffirmed the implementation of these projects will be a major part of the MPI’s plan to boost $9.2 billion newly committed FDI and $4.5 billion implemented FDI value across next year.
Vietnam’s incredibly rich natural resources and continuing economic growth will be attractive to foreign investors as the country has become the 150th WTO member.
However, the disadvantages are increased competition, price hike of production materials, underdeveloped infrastructure, sluggish administrative procedures and shortage of skilled workers, Thang noted.
Vietnam Investment Review, english.people.com.cn
Vietnamese
