Vietnam Govt Proposed to Inspect Vinashin-invested Steel Projects
The Vietnam Steel Association has proposed the government and ministries to conduct a comprehensive inspection into all steel projects of the state-owned Vietnam Shipbuilding Industry Group (Vinashin) due to ineffectiveness of many projects.
The association sent the proposal to the government, the Ministries of Industry and Trade, Construction, Investment and Planning and Transport on Jan. 11, the VSA’s Chairman Pham Chi Cuong said in an interview with reporters of the VietnamNet online newspaper.
Vinashin that specializes in shipbuilding industry is expanding its investments into steel projects, non-core businesses therefore its projects prove ineffective, Cuong said.
Among Vinashin-invested projects, work on a steel ingot production plant with an annual capacity of 200,000 tons started in 2007 but it has not been operated as schedule.
In 2008, the group withdrew from a 4.5 million-ton-year steel project partnered with South Korea’s Posco without giving reasons, he added.
Vinashin and Malaysia’s Lion Diversified Holdings Behard Group also inked a cooperation deal in 2008 to carry out the Ca Na steel complex worth US$9.8 billion, the largest of its kind in the country. The joint venture, however, has adjusted some sections and delayed the implementation for several times.
The group has also invested in Vinashin-Vinkansai and Vinashin Cuu Long construction steel projects which have proved ineffective, the chairman noted.
Therefore, the government should instruct to check Vinashin’s investments into its non-core business, Cuong added. (vietnamnet)
Tags: Vietnam steel industry, Vietnam Steel Projects
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