VietNamNet Bridge - Formosa, the Taiwanese investor, which is building a steel complex in Vung Ang Economic Zone in Ha Tinh province, plans to build an oil refinery in the second phase of the project development.

In the first phase of the project, a steel complex and deep-water seaport in Son Duong would be built with estimated investment capital of $10.5 billion.

The project covers an area of 3,000 hectares, including 2,000 hectares of land area and 1,000 hectares of water surface. The life of the project is 70 years, starting from 2008.

If the first phase of the project operates effectively, Formosa would consider moving ahead with the second phase when the investment capital would be raised to $26 billion. There would be six blast furnaces instead of two, while the steel capacity would be 20 million tons instead of 7.5 million.

It is clear that if Formosa decides to implement the second phase of the project, it would have to lease more land for oil refinery. 

Taiwanese Formosa was welcomed warmly when it arrived in Vietnam 15 years ago as a major foreign investor with multi-billion dollar projects. But it has been involved in many scandals.

How long will the Ha Tinh provincial authorities lease land to Formosa to implement the second phase of the project – 50 years or 70 years?

An analyst commented that the mass fish death caused by Formosa's discharge of waste water and the recent discovery about its solid waste storage in several localities have raised concerns. 

Therefore, it is highly possible that the production expansion by Formosa would face strong opposition. 

Taiwanese Formosa was welcomed warmly when it arrived in Vietnam 15 years ago as a major foreign investor with multi-billion dollar projects. But it has been involved in many scandals.

The scaffolding collapse at the Son Duong Port in Vung Ang IZ in March 2015 caused 13 deaths and injured 29 people.

In March 2016, Formosa was discovered discharging chemicals into an area adjacent to the road in Ky Lien Ward.

Most recently, it has been accused of causing the mass fish deaths in four central provinces of Vietnam.

Duong Tat Thang, deputy chair and head of the Ha Tinh provincial Economic Zone Board of Management, confirmed that the investment expansion in the second phase of the project was approved. However, the time to implement the plan has not been determined. 

Thang said that it was necessary to clarify the environment management capability and the tolerance of the environment to the current production capacity before making a decision.

Regarding the question if Ha Tinh would lease land for 50 or 70 years to serve the oil refinery, Thang said this would depend on negotiations between the two parties.  

Nguyen Dong Hai, former senior executive of PetroVietnam, said that Vietnam should consider thoroughly the possible impact of the industry on the environment.

Dat Viet