Tata Steel abandons project in Vietnam

Steel Company Tata Steel (Tata Group, India) announced that it is completely withdrawing from its $ 5 billion steel project in Hatin as the license is delayed and the business environment becomes more complex.

In 2007, Tata Steel and Vietnam Steel Corporation signed a Memorandum of Cooperation in the field of research, in the economic zone of Vung Ang, Ha Tinh. This project is based on the development and extraction of iron ore from the Tach Khe mine.

However, after more work has been done, Tata Steel is at a standstill in securing funding. This is considered one of the key issues, as investors of the State Vietnamese Tata Steel do not have the funds due to the onset of difficult times for Vietnam in the context of the global economic downturn and declining steel consumption around the world. Tata Steel is forced to withdraw its application for the issuance of investment certificates.

At the same time, An Tuan, manager of the Ha Tin economic zone, said that despite Tata Steel's assertion of a complex business environment, two large corporations Mitsubishi (Japan) and Samsung (South Korea) are conducting surveys and proposing investment solutions for several projects at once. ...

Samsung Group in Vietnam decided to invest in Vung Ang for the construction of CHP III (total capacity 2,400 MW). Mitsubishi Corporation is also investing about $ 2.4 billion in the Vung Ang CHP II (1200 MW) project, with construction to begin in the first quarter of 2014.