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Tony Milton MRICS

BSc (Hons) Est Man
MRICS
APREA (CREIF)

Big Industrial
Monday, 16 March 2009

SIGNIFICANT INDUSTRIAL PROJECTS      

                 

 

 

 

There are many hundreds of millions or billion USD$ projects that have been licenced over the course of the last few years, though given the global credit crunch, it would seem unlikely that many of these will be developed as originally scheduled. This is perhaps particularly the case with the larger tourism developments, which can be scaled back, and the steel projects, which are obviously much harder to develop in phases, especially if the foreign developers intended to re-use second-hand facilities which were deemed too polluting eg new environmental regulations in China and elsewhere. One also needs to remember that in Vietnam there are 66 provinces which to a large degree these days are quite autonomous in that they can licence all but the very largest projects directly and independently. This localised system encourages each province to compete with, rather than co-operate with its neighbours. This helps encourage the use of incentives and environmental concerns to be over-looked so as the province can continue receiving tax income and jobs are maintained. Many provinces are keen to develop their own airports; sea ports, and steel and petro-chemical industries in enormous Economic Zones which has also resulted in white elephants, or hugely unsuccessful projects being promoted. Others, such as the deep-water sea complex near Vung Tau make much more sense and will increasingly become the focus for industrial development. Some of the larger industrial investments licenced include : -

 

 

NORTH

 

 

 

Lach Huyen International Deepwater Port Complex & Dinh Vu IZ

 

 

 

In early 2008 the Prime Minister approved the development of the 1,200 hectare Lach Huyen Port near Dinh Vu industrial park in Hai Phong which is scheduled to become one of Vietnam's most important ports and become the largest deep-sea port in the north able to handle all imports and exports from northern provinces and southern China. The operation of the Lach Huyen port will turn Haiphong into an important place for transit goods. Goods from the western areas of China to other places will take an itinerary which is 800 km shorter if they are transited at the Lach Huyen port rather than at the nearest Chinese port. The annual handling capacity of the port will be 4 million tons of cargo in the period of 2010-2015 and the figure increase to 29-40 million tons by 2020. Rent A Port, Antwerp, IPEM and United Development Co from Belgium and Qatar have committed to invest USD$500 million to develop the port with VinaLines : USD$250 million for the construction of Terminal Nos 3 & 4 with another USD$250 million to be spent on a 400 hectare logistics centre. Terminals Nos 1 & 2 will be built by Vinalines. After completing the second phase of the Haiphong port upgrade project, which was financed by Japanese loans, the main terminal and Dinh Vu terminal are now able to receive ships up to 30,000DWT. However, the continued build-up of sand, mud and alluvium in the Lach Huyen Passage blocks ships of more than 10,000 DWT from entering the terminals, so cargoes can only be shipped in small ships to and from the port.

 

 

The Pha Rung Shipyard, a subsidiary of the domestic giant shipbuilder Vinashin, is building a port and shipbuilding complex costing USD$156 million covering 260 hectares in the Dinh Vu Economic Zone with 4 wharves and total length of630 meters while the shipbuilding industrial zone will include a bonded warehouse, a 21 storey office building, industrial plants and other auxiliary facilities. The port has a designed throughput of 7 million tons of goods per year while its 4 wharves will be able to handle vessels of20,000DWT and container ships of 1,300-1,500TEUs. Vietnam Railway Corp (VNR) is building a railway connecting Chua Ve to Dinh Vu Industrial Park in Haiphong.

 

 

Heavy and light industries, chemicals, petrochemicals, agriculture, services and warehousing facilities for seaports are the main sectors targeted by the park on Dinh Vu Peninsula. The Dinh Vu industrial park’s USD$80 million 1st Phase is full and the 2nd Phase covering 377.5 hectares is being developed at a cost of nearly USD$147 million.

 

 

 

Hon Mieu Island Deepwater Port

 

 

 

In 2007 a consortium of big companies started work on the zone on Quang Ninh’s Hon Mieu Island in Hai Ha district 50km from Mong Cai. The USD$15 billion project will play a crucial role in fostering trade between Vietnam and China as well as ASEAN countries. It will have a deepwater port, shipyard, steel mill, thermal power plant, oil refinery, tourist park and urban towns. The companies are Vietnam Coal and Mineral Industries, PetroVietnam, Bank for Investment and Development of Vietnam, Halong Investment and Development, Vietnam Post and Telecom, Song Da Corporation and Vietnam Shipbuilding Industry. The site is close to transport routes with water depth of 20 meters which is suitable for a deep seaport. Plans include economic zones, a large-scale deepwater port, a shipbuilding industry zone, a steel mill, a thermal power plant, a tourist area and new towns. The port is designed to receive large ships of up to 120,000 DWT. It will lay the foundation for developing petrochemical, shipbuilding, power and hospitality industries. The investment capital for the 1st Phase is estimated at USD$1.2 billion. Quang Ninh, which is part of the Northern Focal Economic Zone, is located in the heart of two planned economic corridors connecting China's Kunming and Guangxi provinces with the northern provinces. The need for building a new deepwater port in the province is urgent, as the northern port system should be able to handle 100 million tons of cargo per year in 2020.

 

 

 

Nghi Son Economic Zone

 

 

 

The 926.2 hectare economic zone will be a bridge between the north and central, the north-west and the south of Vietnam and southern Lao and north eastern Thailand. Since getting underway in 2006, the government pushed for Nghi Son to become a multi-sectoral economic zone with a focus on heavy industries such as oil refining, chemical-petroleum, steel manufacturing, shipbuilding, and thermal power and construction materials. Situated 202 kilometres south of Hanoi with  a strong transport network to National Road 1a and the north south national railway, the zone has over 25 projects worth more than a combined USD$8.3 billion because of the easy access to industrial materials for steel and cement manufacturing, and Nghi Son's deep seaport and large areas of available. The 325 hectare Nghi Son oil refinery petrochemical complex is expected to refine about 18 million tonnes in 2010, 25 million tonnes in 2015, 37 million tonnes in 2020 and 48 million tonnes in 2025. Once operational, the plant will produce liquefied petroleum gas, petrol for classes 90, 92 and 95, kerosene, diesel, FO, jet fuel and other petrochemical products such as polypropylene, polyester, benzel, sulfur and asphalt.

 

 

 

Nam Son-Hap Linh Industrial Park

 

 

 

Located in Bac Ninh province, Korea’s IGS Capital Group's 602 hectare Nam Son-Hap Linh Industrial Park in Tien Du district is expected to bring in roughly USD$2 billion and create 50,000 local jobs. IGS will use about 400 hectares for building factories and 200 hectares for developing a residential and trade complex, clinic and school on 50 year leases. After completing construction, IGS plans to lure about 300 foreign investors, including 200 Korean investors and 100 American investors.

 

 

 

Northern Cam River Complex Urban Area & Industrial Park

 

 

 

The Urban Development JSC & the Vietnam-Singapore Industrial Park are investing USD$1 billion in the complex in Thuy Nguyen district in northern Hai Phong City on a site located on an area of 1,600 hectares

 

 

 

Cau Treo International Border Gate Economic Zone

 

 


Korea-based Jiseya Partner company is set to pour USD$1.2 billion into an industrial and urban area in central Ha Tinh province. Some 100 hectares of the 500 hectare project will be devoted to a new urban area and 400 hectares to an industrial zone in the Cau Treo International Border Gate Economic Zone. The project is situated on the central point by the south-north transport axis and one of the most important points on the East-West corridor.

 

 

 

CENTRE

 

 

 

Dung Quat Economic Zone
 

 


The opening of the long awaited Dung Quat oil refinery in Quang Ngai is expected to be a major economic driving force for the central region. For example, Doosan Vina Heavy Industries Vietnam's USD$300 million Doosan Vina heavy industry project, and the Dung Quat shipbuilding factory, which has built 104,000 dead weight tonne vessels. The zone also includes the 3,828 hectare Van Tuong urban area. The Dung Quat oil refinery's influence is pervading the whole region, stimulating its economic development and interest in economic partnership among localities, a sense of cooperation that the government has long been trying to encourage. With a capacity of 6.5 million tonnes per year, Vietnam for the first time can produce products such as diesel oil and various petrol types. The products will meet 30% of the country's demand for fuel with an estimated annual turnover of about USD3.15 billion which will contribute to local revenue sources making capital available for infrastructure construction and economic development.

 

 

 

Chu Lai Economic Zone

 

 

 

The nearby Chu Lai Open Economic Zone in Quang Nam is also expecting the refinery to usher in an influx of new investment projects. The most important focus is the Chu Lai airport which will be upgraded and by 2025 will become an international airport with a capacity of 4 million passengers (it better serves Hoi An than Da Nang), and 5 million tonnes of cargo per year. Moreover, the province plans to develop a strip of land along the shore from Hoi An ancient town to Chu Lai to attract major international investors. Once completed these projects will create a continuous business link from Dung Quat to Danang. The coastal road linking Hai Van with the tourist areas of Son Tra-Dien Ngoc to Hoi An and Chu Lai will complete a development chain for tourism and services. The areas in the western part of these localities will also be connected by the proposed 131km USD$1.3 billion Danang-Quang Ngai expressway which is partially financed by the World Bank and the Japan Bank for International Cooperation.

 

 

 

Chan May-Lang Co Economic Zone

 

 

 

The Chan May-Lang Co EZ, 70km southwest of Hue City, spans 27,108 hectares in Lang Co Town and communes Loc Thuy, Loc Tien and Loc Vinh of Phu Loc District. Chan May deep-water port, which can receive over 50,000-tonne ships. The Chan May urban city and other trade, finance, information service, healthcare and training centres is situated along the banks of Bu Lu and Thua Luu rivers and Phuoc Tuong mountain covering 1,545 hectares with a high quality eco tourism zone on a 4,570 hectare site. Chan May Port will be built at Chan May Dong Cape on 370 hectares. A 120 hectare goods supply and transportation and trade services center will be built at the intersection of National Highway 1a and the road to Chan May Port. The zone has licenced over 30 projects in tourism, services and industrial production, with registered capital of USD$1.8 billion. However, only half of these projects have been fully realized. Vinashin will invest in a shipyard and two piers, one for docking cruise ships and the other to accommodate container ships. Chan May Port's expansion plan calls for it to receive ships of 30,000 - 50,000dwt and increase its cargo handling capacity from 500,000 tonnes per year to over one million tonnes by 2010.

 

 

 

Hon La Port Complex

 

 

 

Situated in Quang Binh province, Hon La is poised to become a dynamic economic zone since the government has approved plans to develop it into a 10,000 hectare economic zone in Quang Trach district. The mainland will account for 8,900 hectares with the remainder islands and the sea. A non-tariff area will occupy 200 hectares for import and export activities, banking and finance and insurance. A 8,900 hectare tariff area will contain industrial, sea-port, tourism, urban and administrative zones. By 2020, the investment demand to continue developing the infrastructure is forecasted at $5 billion. The zone will create about 40,000 jobs for local residents by 2020. Several factories are already under construction in the zone such as the $312 million Anh Trang Steel Casting and Steel Ingot Manufacturing Factory; the $62.6 million shipbuilding project by Hon La Shipyard Company; Transport company Vietranstimex under the Ministry of Communications and Transport is developing the 1st Phase of the Hon La Port; a local consortium comprising the Vietnam Shipbuilding Industry Group (Vinashin), the Bank of Investment and Development of Vietnam, and Truong Thinh Company in developing the 2nd Phase of Hon La Port – which should be able to receive large ships of 100,000DWT – and PetroVietnam also wants to invest in Hon La Marine IZ in projects specialising in such fields as shipbuilding, wharf construction, thermo-electrics, hydro-electrics, mining, oil and gas and tourism,. The completed Hon La Port is expected to foster the trade flow between Vietnam's central provinces and the lower region of Laos and Northeast Thailand. Furthermore, Hon La Port will also serve as an important gateway in the East-West Economic Corridor. According to a master plan prepared by the maritime administration, Hon La Port will have a throughput pf 1.8 million tons of goods a year by 2010 and some 1.4 million tons of cement and minerals from Laos that will transit in the port every year.

 

 

 

Bo Y International Border Gate Economic Zone

 

 

 

The Bo Y International Border Gate Economic in the Central Highlands province Kon Turn will help trade between Viet Nam, Laos and Cambodia as it is located in the core of the economic development triangle. It has attracted 12 foreign invested projects whose total registered capital is USD$17 billion including a USD$3 billion 5 star hotel, trade centre, golf course complex and an international airport worth USD$6 billion. To date, the management board has granted licences to 23 projects worth a total of VND685 billion ($43 million) of which 17 are under construction. The zone covers 68,750 hectares and encompasses Sa Loong, Bo Y, Dac Xu, Dac Nong and Dac Due communes and Plei Can town.

 

 

 

Nhon Hoi Economic Zone

 

 

 

Nhon Hoi Economic Zone in Binh Dinh covers 12,000 hectares, and is expected to become a magnet for local and foreign investors. Situated around 700km north of HCMC, is emerging as an attractive destination for investors in tourism, infrastructure and manufacturing projects. A new road is linking Phuong Mai peninsula with Quy Nhon city together with the recently built Thi Nai bridge has made a golden strip of thousands of hectares on the Nhon Ly-Cat Tien coast more attractive to investors. Saigon Invest Group and MTV Hong Yeung Vietnam are developing two industrial parks in Nhon Hoi Economic Zone (NHEZ); Taiwan's Foxconn Group has pledged to invest $1.5 billion in NHEZ; Khang Thong are investing US$235 million developing a duty-free area covering 490 hectares; an industrial zone covering 70 hectares and a bonded depot covering 40 hectares; a petrochemical and oil refining complex by a Hong Kong investor costing USD$1.5 billion for the oil refinery with a capacity of 5 million tons. The NHEZ is adjacent to the existing Quy Nhon Port, one of the top ten ports in Vietnam, which is able to accommodate 30,000DWT ships. Many Vietnamese and foreign companies have shown keen interest in Nhon Hoi, with projects in the pipeline including industrial parks and ports, a wind power station, residential complexes, auto plants, shipyards and tourism facilities. The USD$232 million Gemadept Nhon Hoi International Seaport in the Nhon Hoi Economic Zone will be built in two phases on 119 hectares including an initial two 480-metre berths with a yearly capacity of two million tonnes. The second phase will extend the port to 10 berths totalling 2,114 metres. The economic zone is important not only for the province but also as a link in the Trans Asian Railway line.

 

 

 

Van Phong International Transit Seaport

 

 

 

Van Phong, called Port Dayot by the French, is located in Van Ninh and Ninh Hoa districts and about 50 kilometers from Nha Trang City and 3 kilometers from Tuy Hoa township. The bay, surrounded by Hon Gom Island, has a rich terrain with islets, peninsulas, deep waters, coastlines, beaches and sand dunes. It is situated in a diverse eco-system with rain and mangrove forests. The bay is known for Hon Ong (Ong Island), Dam Mon (Mon Lagoon) and Bai Nhau (Nhau Beach). Most of these places remain relatively deserted except for nearby fishing villages. Weather in Van Phong is warm all the year round and the environment is almost intact and unpolluted, which is an ideal place for eco-tourism. Van Phong Bay is one of the world's deepest bays. United Nations tourism experts have also recognized it as one of Asia's most perfect sites for eco-tourism, and the bay has been rated a,, an ideal place for scuba diving. Because of the bay's location and depth, the Vietnamese Government allowed Khanh Hoa in October 1999 to draw up a plan to develop the economic zone covering 150,000 hectares of land and water surface in Van Phong into an international deepwater seaport and tourism venue, comprising 2 main sections, one of them customs-free. Van Phong, 70 kilometers north of Nha Trang City, will be developed into a multi-functional economic zone but the province will give priority to an international container port, according to the decision. SGT

 

 

In terms of its geographical location within Southeast Asia and East Asia, Van Phong will have to compete not only with Hong Kong Port and Singapore Port, but also with renowned transshipment ports such as Busan (Korea), Shanghai (China), Kaohsiung and Keelung (Taiwan), Klang and Tanjung Pelepas (Malaysia), and Laem Chabang (Thailand). These leading transshipment ports handle huge volumes of containerized cargo and offer enticing choices for well-known shipping companies. In 2006, the volume of cargo handled at each of these ports surpassed 2 million TEU (twenty-foot equivalent unit). For instance, Kaohsiung handled 9.77 million TEU, Busan 12 million TEU, and Shanghai 21.7 million TEU. In contrast, the total volume of cargo received at ports in HCM City was merely 2.3 million TEU. Singapore, Hong Kong and the other ports mentioned above lie in greater proximity to international shipping routes than Van Phong does, and are mostly sheltered from tropical storms sweeping through the East Sea. This puts Van Phong at a disadvantage. On the other hand, Van Phong is nearer to the American continent than Singapore is, but is not as near as Kaohsiung or Keelung. However, it is further from the Middle East and Europe than Singapore and Malaysia's ports are. Clearly, Van Phong's oft-mentioned location is not sufficiently advantageous to underpin its competitive edge. None-the-less, the project is aiming to be largest international transit seaport in South East Asia with a cargo throughput of 17 million TEUs per year by 2020 - equivalent to Singaporean ports.

 

 

Vinalines is building the first 2 wharves of 37 large scale piers and 6 small piers which should be built by 2020 covering 746 hectare and able to accommodate large vessels up to 15,000, 20-foot equivalent units and handle a total of 17 million TEUs per year. The zone has attracted over 40 projects with total registered investment capital of about USD$13 billion, including Korean Posco Group, STX Group and Japanese Sumitomo Group. Posco Group's large steel project has now been rejected by central authorities but the Viet Nam National Petroleum Corporation (Petrolimex) is proceeding with the construction of a US$4.5 billion petrochemical and oil refinery complex in Ninh Phuoc Commune, Ninh Hoa District, able to refine 10 million tonnes of oil per year on 600 hectares of land and sea. It is hoped that the complex will produce liquefied petroleum gas, petrol, gasoline, diesel oil, benzene, polypropylene. and sulfur. A shipyard will be capable of building vessels with a displacement of up to 400,000DWT.

 

 

 

Vung Ang Economic Zone

 

 

 

Vung Ang will be an open, multi-purpose economic zone covering 22,800 hectares in Ky Anh District, representing 3.3% of Ha Tinh's territory and 21.8% of Ky Anh District. The, project aims to develop Vung Ang into a major commercial hula in the northern provinces of Central Vietnam. The area, which has 2 sea ports in Vung Ang and Son Duong, would form a gateway to the East Sea for countries in the Greater Mekong Sub-region (GMS), especially the north-eastern provinces of Thailand and Laos. The Vung Ang and Son Duong ports can accommodate vessels of up to 150,000 dead weight tonnes.

 

 

A steel complex will be built to exploit iron ores at Thach Khe Mine in Thach Ha District which has more than 554 million tonnes in reserves, with a 62% iron content, while an open cast mine in Vu Quang district possesses more than 10 tonnes. The two mines represent more than a half of the nation's total iron reserves. The Viet Nam Steel Corporation (Vnsteel), Vietnam Cement Industries Corporation (Vicem), French company Arcelor and India’s Tata (4.5 million tons a year costing USD$5 billion), Taiwan's Formosa & Sunsco (15 million tonne capacity costing USD $7.8 billion), Thach Khe Iron Ore Company (TIC), and Song Da Corporation are all interested in large steel complexes. A thereto-power complex with a total capacity of 3,600MW will be built and a shipyard capable of building 20,000 tonne vessels and repairing 100,000 tonne ships.

 

 

 

 

Ca Na Steel Complex

 

 

 

Vietnam's largest steel making facility, the USD$9.8 billion Ca Na complex which is invested in by the Malaysia's Lion Group in partnership with Vietnam Shipbuilding Industry Group (Vinashin), will have an annual output of 4.5 million tonnes of steel in its initial phase. The project will become fully operational in 2025 to supply the domestic and overseas markets with roughly 10 million tonnes of steel per year. The steel venture will also aim building two power plants with combined generation capacity of 1,450 megawatts and a specialised port to handle 15 million tonnes of cargo per year. The complex is located on a 1,650 hectare site in Ninh Thuan province

 

 

Vietnam now has several large scale steel-making complexes under construction. Noticeably, Posco's USD$1.1 billion steel facility in southern Ba Ria-Vung Tau province; Lion Group’s USD$9.8 billion complex in Ninh Thuan; the USD$3.3 billion Taiwanese E United facility in central Quang Ngai; the USD$7.9 billion Taiwanese Formosa and Sunsco's steel making and port complex in central Ha Tinh; India's Tata Steel’s 4.6 million tonne steel mill also in Ha Tinh; and Japan's JFE Steel’s 10 million tonne facility in the central Quang Ngai province.

 

 

 

Hoa Tam Petrochemical Industrial Park

 

 

 

A multi-billion petrochemical industrial park project with investment from Singapore's SP Chemicals is planned for Phu Yen Province. The IP will attract an estimated USD$11 billion, with US$5 billion of it coming directly from SP Chemicals and the remainder from other investment partners. The company has approval to build an oil refinery, a port for ships of up to 250,000DWT, and a naphtha cracking petrochemical complex. Once completed it will generate a combined revenue of USD$20 billion a year and contribute USD$1 billion to the State budget, and create some 15,000 jobs.

 

 

 

Vung Ro Oil Refinery

 

 

 

The USD$1.7 billion project, with an investment capital of 51% ownership by the British Technostar Management and 49% by the Russian Telloil, will become the first wholly foreign-owned oil refinery with 4 million tonnes of petroleum products annually. The project will be developed on a 200 hectares inland area and 210 hectares of water's surface near Vung Ro Seaport in Phu Yen’s Tuy Hoa District.

 

 

 

My Thuy Economic Zone & Sea Transshipment Deepwater Port

 

 

 

Quang Tri Province and the Marine Consultant Company under the Ministry of Transport are working to build the 913 hectare My Thuy deep-water port in Hai An and Hai Khe in Hai Lang District which will have a 1.3km long wave-breaking dike, a 600m long embankment, a 1.5km long, 300m wide and 13m deep passage capable of receiving ships up to 40,000 Dead Weight Tonnes (DWT). The general port will comprise berths totaling 3,090 meters in length, the first a 1,600 meter long berth on 120 hectares with a 40 hectare forwarding and logistic service area and the second a 1,490 meter long berth on 75 hectares. The plan also calls for a thermo-power plant on 163 hectares, a port for liquefied petroleum gas and petroleum products on 65 hectares and a 62 hectare logistics area. My Thuy Port's geographical advantages will help reduce transport distances between the central provinces and the East-West Economic Corridor, which extends from Danang into Myanmar. Construction of the port is estimated to cost about USD$1.17 billion and the Viet Nam Ship Building Industry Corporation (Vinashin) are also planning to build a shipbuilding complex at the My Thuy-Gia Dang area. In early 2009 the province approved a USD$55.3 million project to build a 14km 6 lane road linking the seaport with National Highway 1a and there are plans to develop a railway section linking Dong Ha City to the Lao Bao border gate (Laos), and the Quang Tri airport.

 

 

 

SOUTH

 

 

 

Saigon Hi-Tech Park

 

 

 

The SHTP is proving to be a bit of a catalyst for the development of District 9, though many other large scale infrastructure projects such as the East-West Highway, which runs through the centre of HCMC and the Phu My Bridge, which connects two sides the city and offer lorries and through traffic an alternative to the city centre, have also greatly helped. Keppel Land were quick to recognise this and are planning a large residential development close by the SHTP. The park itself now has a long line of investors waiting to be allotted land as the investment flow is much faster than anticipated, forcing plans for the 2nd and final phase to be brought forward. So far over 40 foreign and local investors have asked leased land to develop hi-tech factories but approval is being delayed because of the lack of infrastructure, so only 27 projects have been licenced to giant companies in IT, science and technology worth more than US$1.4 billion, the most prominent being Intel, Japan's Nidec, Denmark's Sonion, and Singapore based Allied Technologies. These tenants have leased all 200 hectares available in the 1st Phase. Aseana Properties have also invested in the High-Tech Health Park and Indochina Capital and  Chip Sang in an office building.

 

 

 

Hiep Phuoc Port City

 

 

Ho Chi Minh City has begun to dramatically change shape with this key port and urban project. Hiep Phuoc Port City in Hiep Phuoc Commune, HCMC's Nha Be District. The 1,238 hectare port city will see the rapid urbanisation of the area which is close to the new Phu My Hung urban area and Phu My Bridge. Development will start with the dredging of the Soai Rap River to allow large ships to enter the port which will most likely handle 250-300 million tonnes of cargo annually. The river will be dredged to a depth of 12 metres so as to be navigable for 70,000dwt ships at high tide. The system of roads and river ways that links Soai Rap with the provinces in the western part of the south is more convenient than the link between the port system in Cai Mep-Thi Vai in Ba Ria-Vung Tau province. The potential for development of Soai Rap is also affirmed by investment in the area by the world's second largest port investment group - Dubai Ports World (DP World) - who plan to commission the Saigon Premier Container Terminal covering 40 hectares. The 2 phase Saigon Premier Container Terminal project will need total capital of US$305 million. In the 1st Phase, the port will have handling capacity of 800,000 TEUs a year, and this figure will rise to 1.5 million TEUs in the 2nd Phase. At the end of 2008, the 2nd Phase of Hiep Phuoc IP was approved covering 97 hectares and worth about USD

 

 

 

Tan Thuan EPZ

 

 

 

The Tan Thuan Export Processing Zone by the Saigon Port and Phu My Hung in District 7 plan to build a 40 hectares hi-tech park for those involved in research and development (R&D), production and services, shopping outlets, conference halls, and healthcare and entertainment centers inside the Tan Thuan EPZ. Japan's Renesas Technology Corp has pledged to establish a large integrated circuit design center; the world's second biggest IC designer Altera, plans to set up a design center; Brunei plans to build a bio-tech factory; FPT Telecom leased land to build a data center, and Vietnam Data Communications (VDC) plan a data center. Since its debut more than 15 years ago, Tan Thuan EPZ has attracted 165 foreign companies from 14 countries and territories. They have set up 114 factories and exported some USS2 billion worth of goods, 21% of it contributed by hi-tech companies.

 

 

 

Cai Mep – Thi Vai International Deepwater Ports

 

 

 

The new deep water terminals together with other ports along the Thi Vai River will form a complete marine transport system of international standards, creating highly favourable conditions for import and export activities. The project is separated into 5 main packages: construction of port facilities and buildings for the Cai Mep Container Terminal; construction of port facilities and building for the Thi Vii General Cargo Terminal; channel dredging work; equipment procurement and construction of bridges and approaching roads from National Highway No. 51 to the terminal. The ports will increase the loading capacity of ports and boost socio-economic development of the southern area and the rest of Viet Nam. The south-eastern region needs a deep-water port for container ships or vessels up to 80,000DWT because all the inner-city ports in HCMC can receive ships of 30,000DWT at most. The 2nd Phase will include 6 piers with 2 for general cargo and 4 for container ships. Six investors have been licensed to develop huge ports at Cai Mep-Thi Vai, which including : -

 

 

US based SSA Marine’s 60.5 hectare Saigon Port SSA International Container Terminal (SSIT) being built at a cost of US$282 million. The port will be able to receive container ships of up to 160,000 DWT and handle 1.57 million tons of cargo a year.

 

 

Maersk A/S from Denmark’s joint venture with HCMC's Saigon Port to develop the Cai Mep International Port with two wharves in the Cai Mep port complex, with total investment ofUS$187million. The port will be able to handle 950,000 TEUs a year.

 

 

Singapore's PSA’s joint venture with Saigon Port to develop a general port and logistic complex located in the downstream section of the Thi Vai River in Tan Thanh District. The port requires US $165 million for the 1st Phase. Four wharves will be built in the two stages with a total throughput capacity of 1.5 million TEUs per year.

 

 

Hong Kong's Hutchison Port Holdings Group’s Saigon International Terminals Vietnam Limited (SITV) joint venture between the group and Vietnam's Saigon Investment Construction and Commerce to construct, own and operate a container terminal within a 50-year duration. The facility, whose total investment amounts to some US$267 million, will have 3 berths with a total length of 700 meters and a terminal yard of 33.7 hectares. SITV will be a major deepwater seaport in the gateway port complex with the front water depth of 14 meters so able to accommodate vessels of up to 60,000DWT and a throughput capacity of about 1.1 million twenty-foot-equivalent units (TEUs) a year.

 

The Thi Vai interna­tional Port was licenced in 1997 as a joint venture between Vung Tau Shipping and Service Company, Viet­nam Steel Corporation and Japan's Kyoei Steel Company with a total investment capital of $56 million but suffered endless delays and was cancelled.

 

AP Moller Terminals from Denmark,

 

 

However, the investors are still waiting for and complaining about the lack of a road connecting to National Road 51 near Vung Tau.

 

 

 

Long Thanh Industrial Complex

 

 

 

Situated in Dong Nai the project covers 488 hectares in Long Thanh district and has roads, water drainage and supply systems, a water treatment factory, and a power supply and telecommunications network. The park has attracted over 70 projects with a total investment of over USD$500 million. The Long Thanh IP has many advantages including a convenient location bordering Highway 51; is 44km to HCM City and 25 km to the Phu My Deepwater Port. When the construction of an expressway that will run through HCM City and Long Thanh and Dau Giay District, is completed, the distance between the Long Thanh IP and the country's biggest economic hub will be shortened to only 23 km. The park will also be only 11 km away from the under construction Long Thanh International Airport. It also lies in the Tam An Industrial Urban Area, where the proposed Tam An Residential Zone will be built. When complete the town will meet all the necessary living requirements of investors and 40,000 workers. The town will also have parks, a football ground, sports and entertainment facilities and a trade centre.

 

 

 

Tan Phu Trung Industrial Zone

 

 

Situated in in Tan Phu Trung and Tan Thong Hoi communes of Cu Chi District 20km northwest of HCM City, Foxconn plans to develop a 200 hectare hi-tech park and a 10 hectare trading center for its products in the new urban center of Thu Thiem in District 2. It will build hi-tech factories, trade centers, offices and apartments with investment capital of USD$400 million to USD$1 billion in HCMC, Hanoi, Danang, Vinh Phuc, Bac Ninh and Bac Giang. The IZ is being developed by Song Tan JSC with USD$84 million on 543 hectares and aims to house enterprises moving from inside the

 

 

Long Son PetroChemical Complex

 

 

 

The facility on Long Son Island off the southern province of Ba Ria ¬Vung Tau, 125 km southeast of HCMC, will need total investment capital of nearly USD$3.8 billion and cover some 400 hectares in Long Son Oil and Gas Industrial Park. The USD$3.7 billion joint venture between PetroVietnam, Vietnam National Chemical Corporation, Thai Plastic and Chemical (which is 45% owned by Siam Cement Group, and SCG Cementhai Co, a subsidiary of the Thai group), will produce 1.65 million tonnes of olefins, 1.45 million tonnes of polyolefin, 280,000 tonnes of soda and 730,000 tonnes of material for polyvinyl chloride production. The project is expected to contribute around $40 million per year to the national budget in income tax and more than $500 million per year in value-added tax. It will use around 10,000 labourers during construction and 1,500 skilled technicians to run it. PetroVietnam is scheduled to sign a joint venture contract with a Venezuelan partner to exploit crude oil from Venezuela and to build an oil refinery in Vietnam for the greenfield complex.

 

 

 

Go Cong Oil & Gas Industrial Park

 

 

 

Situated in Binh Xuan and Binh Dong communes in the Mekong Delta province of Tien Giang adjacent to the National Road No.50, the sea and Hiep Phuoc port on the Soai Rap river 40 km from HCM City and covering 1,031 hectares of Go Cong District, the Australian based Country State Group is looking at investing USD$1 billion in a commercial property project including an international standard exhibition and commercial centre, a high-end resort, theatres, schools, hospitals and an eco-friendly industrial park. PetroVietnam is also completing investment procedures for construction of a USD$1.5 billion petroleum and gas industrial complex in Go Cong town covering 23 hectares which was previously planned for the Long Hung Industrial Cluster to develop a hotel and recreation complex. Vinashin will also develop a facility for shipbuilding and repair services.

 

 

 

Kien Luong Power & Sea Port Complex

 

 

 

The Tan Tao Group’s build-operate-own project in southern Kien Giang province is estimated to have an investment capital of USD$2.5 billion in the 1st Phase. The port complex, comprising Nam Du and Kien Luong ports, will serve the power plant, enabling the delivery of imported coal. The group plans to import 10 million tonnes of coal annually to run the power plant which will be the largest thermal power project allocated to a private sector company with a total output capacity of 4,400-5,200 megawatts to be developed in 3 phases. The Kien Luong port centre, covering 556 hectares, will contain a 256 hectare power complex, including a 57 hectare ash disposal area. The coal port is designed to receive 10,000 dead weight. tonnage vessels, and the cargo port 3,000DWT vessels. The total investment capital for the project, including the Nam Du coal trans-shipment port, is around USD$7.7 billion. The Kien Luong Phase 1 centre will require about 3 million tonnes of coal a year, mainly imported from Indonesia, Australia and Russia.

 

 

Last Updated ( Saturday, 11 April 2009 )
 
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