Vietnam’s biggest paper plant may be scrapped

The project that would have been Vietnam’s largest paper plant is at high risk of being abandoned because of slow progress.

The project, worth USD1.2 billion, is backed by investor Lee & Man Vietnam Paper Company, under China’s Lee & Man Group. Begun in August 2007, the plant was scheduled to become operational in 14 months. However, it still remains an empty plot of land.

The plant covers a 210-hectare area at Phu Huu A Industrial Complex in Hau Giang Province, which was designed to produce 1.5 million tonnes of pulp and 1 million tonnes of paper per year.

The project also includes a material area to serve production.

Nguyen Lien Khoa, Vice Chairman of Hau Giang People’s Committee said, the committee has sent a document to the company asking them to confirm the continuation of the project. The document carries with it a requirement to reply no later than April 25. Failing a reply, the project will be revoked.

The company has said that it would work with local authorities in early April to resume consturction of the project, however no more moves have been taken since then.

According to the Saigon Times, Lee & Man announced late last year that it had recovered from the financial crisis and would resume construction in 2011, asking provincial authorities to grant them land use rights. Even though they were given the rights, the project remains stagnant.

Residents of the area, mostly farmers, had high hopes for the paper mill. They were promised jobs and higher profits to change their agricultural products in return for giving up land for the facility. – Dtinews

Tags: Lee & Man Vietnam Paper Company, Vietnam paper industry