Lee & Man and Hokuetsu Paper Group Joint Venture Wants to Invest $3 Billion in Vung Ang Economic Zone

Lee & Man Group (Hong Kong) and Hokuetsu (Japan) work with Ha Tinh Provincial People's Committee

On the afternoon of September 10, representatives of leaders of Lee & Man Group (Hong Kong) and Hokuetsu (Japan) had a meeting with the People's Committee of Ha Tinh province to propose research and survey the construction of a seaport complex, logistics zone, large-scale paper production industrial park with a capacity of 1 million tons/year in Vung Ang Economic Zone.

Accordingly, these 2 corporations want to build a deep-water seaport with 6 piers, ensuring the reception of ships of 300,000 tons; build a logistics zone for forwarding dry goods from Vietnam, Laos, and Cambodia; to develop paper industrial parks, including: 1 tissue paper factory with a capacity of 1 million tons/year and factories producing auxiliary equipment for the paper industry, seaport industry, etc logistics industry...

The total area for the project that the investor wants to study and survey is 6,000 hectares, including: factory area of 1,400 hectares; 600 hectares logistics area; sea surface area: 4,000 hectares. The total investment for the project is 3 billion USD, the project operation period is 50 years.

The actual progress of the project consists of 2 phases, which are expected to be completed within 4 years from the date of issuance of the investment registration certificate. Phase 1 from 2019 – 2021: Capacity reaches 500,000 tons/year; Phase 2: from 2021 to 2023, increase the capacity to 1 million tons/year.

When the project comes into operation, it will create jobs for about 3,000 workers, contributing an estimated 150 million USD/year to the state budget.

According to representatives of Lee & Man Paper Group and Hokuetsu, when researching and determining investment in Ha Tinh, the company is committed to investing in the most modern production lines and technologies, paying special attention to environmental issues and meeting the maximum the highest standards in the process of production and business activities.

Talking to investors at the meeting, the departments of Ha Tinh province said that the project still needs more time to study the feasibility and consider whether it is suitable to invest in Vung Ang Economic Zone or notgrandfather.

Vice Chairman of the Provincial People's Committee - Head of the Management Board of Ha Tinh Provincial Economic Zone Duong Tat Thang

According to Vice Chairman of Ha Tinh Provincial People's Committee Duong Tat Thang, investors need to learn more about the areas Ha Tinh is prioritizing to call for investment in Vung Ang Economic Zone.

"According to the investor's proposal, the area for the project is too large while the investment rate is small, dealing with low labor resources. The enterprise has also not mentioned the investment in seaport construction and logistics included in the project. Therefore, there is no detailed overview of the project," Mr. Thang said.

In addition, Director of the Department of Planning and Investment Tran Tu Anh also said that the project to build a paper factory is not yet a priority of Ha Tinh in Vung Ang Economic Zone in the next period. which gives priority to supporting industries after steel and developing wharf systems.

Speaking at the meeting, Secretary of the Ha Tinh Provincial Party Committee Le Dinh Son emphasized that Ha Tinh currently attaches special importance to environmental issues for investment projects in the area.

"The point of view of Ha Tinh province is definitely not to trade the environment for economy. In the general plan for the next period, Ha Tinh aims for green and sustainable development," Mr. Son informed.

Regarding the feasibility of the investment project in Vung Ang Economic Zone, Mr. Son said that investors need to study more carefully about the land fund and sea surface area.

Secretary of the Ha Tinh Provincial Party Committee Le Dinh Son: The view of Ha Tinh province is definitely not to trade the environment for economic development.

According to Mr. Son, if compared to the Formosa mega project (FHS), the sea surface area proposed by Lee & Man Group and Hokuetsu Group is 4,000 hectares to build 6 wharves, while FHS uses 1,300 hectares to build 32 wharves; FHS has created jobs for nearly 10,000 workers, but this project has only 3,000 workers.

"At this meeting, the two sides have not agreed on the requirements given. Therefore, investors need to study more closely the issues of raw materials, technology, environment, etc. and have a written answer to problems related to the project", Mr. Son concluded.

Hokuetsu Group was founded on April 27, 1907 and is headquartered in Tokyo, Japan. Currently, this group has 22 subsidiaries including in Japan and abroad with nearly 4,800 full-time employees and nearly 1,600 informal employees. Currently, Hokuetsu is the largest corporation in Japan specializing in pulp and paper production, supplying the domestic and export markets.

Lee & Man Paper Group was founded in 1994, stock code 2314.HK. Lee & Man Paper's market capitalization is $4.92 billion.

Lee & Man Paper Group is one of the largest paper mills with a capacity of 7 million tons per year. Currently, this group has 5 paper factories in China.

Recently, this group has built a high-class packaging paper factory with an output of 420,000 tons/year on a land area of 41.9 hectares in Hau Giang province with a total investment of 1.2 billion USD.

Nguyen Phuong/ Vietnam Finance