VietNamNet Bridge – One year after the government released the decision to allow Guang Lian steel project to increase its investment capital to 4.5 billion dollars, the super-project in Dung Quat Economic Zone in the central region of Vietnam still has not received a certificate on capital increase. On March 30, the government’s office released a dispatch informing the opinion of Deputy Prime Minister Hoang Trung Hai that the Quang Ngai provincial people’s committee has to report the land allocation and investment certificate to the project. In August 2010, Hai agreed to the proposal of the investor to raise the designed capacity from five million tons to seven million tons per annum. The investment capital has also been raised from three billion dollars to 4.5 billion. In another happening, on February 24, 2011, after the meeting gathered to discuss the solutions to settle the problems of Guang Lian project, Deputy Minister of Industry and Trade … [Read more...] about Kick-off time for Guang Lian steel super-project remains a question
Sim lian projects
VietNamNet Bridge - Guang Lian could be an ‘unlucky’ project in the eyes of other investors as it has changed many hands, but Hoa Sen still sees big benefits if it takes over the project. An analyst noted that Hoa Sen, if developing the project as planned, would not have to spend much money on site clearance because the work has been done by the previous investor E-United. Though the investor did not implement the project, it spent tens of millions of dollars on site clearance, which allows Hoa Sen to cut investment costs and time. However, the biggest advantage of the project does not lie in site clearance, but in the tax incentives promised by the local authorities for the project. At the time when Tycoons received an investment certificate in 2006, the steel project was subject to a 10 percent preferential corporate income tax and a lot of other investment incentives. If Hoa Sen registers a new steel project at this moment, it will not be able to … [Read more...] about Will Hoa Sen invest in the Guang Lian project?
VietNamNet Bridge – The authorities of the central province of Quang Ngai have proposed termination of the Guang Lian Dung Quat steel project by June 30. Quang Ngai province has announced the conclusion of the inspection of the management and use of land and the progress of the $4.5 billion Dung Quat Guang Lian steel project. Accordingly, there are sufficient conditions for the authorities to decide to terminate the project. Local leaders also said they had sent dispatches to relevant ministries and agencies to ask for their comments and propose to stop Guang Lian project by June 60. The decision was made after the Taiwanese investor held a vast area of clean land for 10 years, causing great waste for the province. Guang Lian did not agree with the conclusion and protested Quang Ngai authorities for publicly releasing the conclusion. Dung Quat Guang Lian steel project was certified in 2006, located in Dung Quat Economic Zone, invested by Tycoons Group from China, with an … [Read more...] about Quang Ngai determined to revoke Taiwanese-invested US$4.5 billion steel project
VietNamNet Bridge - Numerous licenses of big foreign-invested (FDI) projects have been revoked, revealing the poor ability of local governments in assessing FDI projects. In September 2006, the $1 billion Guang Lian steel plant project in the Dung Quat Economic Zone (Quang Ngai province) of the E-United Group and Tycoons (Taiwan) was licenced. The registered capital later increased to $3 billion. Under the plan, the project will be completed in 2016. However, after nine years, the Guang Lian Steel Co. recently announced that it was unable to arrange capital for this project. Similarly, in May 2007, the Vietnam Steel Corporation and the Vietnam Cement Corporation signed a memorandum of understanding on the implementation of a $5 billion steel plant in the Vung Ang Economic Zone in Ha Tinh Province with the Tata Steel Group of India. Although repeatedly confirming its determination to invest in this huge steel project, in 2014 Tata Steel, a subsidiary of the Tata Group, withdrew from … [Read more...] about Huge FDI projects withdraw from Vietnam and the consequences
VietNamNet Bridge - While foreign investors all have withdrawn from the Guang Lian project, the Hoa Sen Group will develop a steel complex, which was a major surprise to everyone. Hoa Sen plans to develop Guang Lian project in Dung Quat Economic Zone in Quang Ngai province after E-United gave up the project. The withdrawal leaked from a document the Quang Ngai provincial authorities had sent to the conglomerate. The document said Hoa Sen and the provincial People’s Committee would sign a cooperation agreement in many fields, including the steel project. This is seen as a positive sign for the revival of the $3 billion steel project which has been on paper for 10 years. In 2006, Taiwanese Tycoons received an investment license to develop Tycoons steel project with the initial investment capital of $1.7 billion. Later, 90 percent of the project’s stakes were transferred to E-United, also from Taiwan, which then raised the registered investment capital to $3 billion … [Read more...] about Hoa Sen to take over Guang Lian project