Kyoei stuck in long-delayed port project

A recent provincial Department of Planning and Investment inspection showed that construction of Thi Vai International Port, jointly developed by Japan’s Kyoei Steel, Vung Tau Shipping and Service Company and state-run Vietnam Steel Corporation, was dragging the chain.

Even though the developer had committed to push the construction after receiving a renewed investment certificate for the $56 million project a year ago, administrative procedures have yet to be actioned.

Funding and port development spats between shareholders have held the 46 hectare project back, located in Cai Mep-Thi Vai port complex, supposedly an important southern key economic region gateway.

The port project was initially licenced in 1997 with total investment capital of around $56 million, but due fund contribution disagreements, the construction of the port has not started yet.

Based on the Investment Law, the provincial authorities could revoke the investment licence of the joint venture, but they decided to grant the project a renewed investment certificate. Under the new investment certificate, the port’s developer committed the project would be operational by 2015. However, it seems that the shareholders have not found a way to remove the long-lasting disagreements, meaning the long-delayed project remains standstill.

Ryoichi Matsuno, general director of Thi Vai International Port Company, confirmed with VIR that the project “is unfortunately not in line with the timeline we indicated.”

In a proposal sent to Ba Ria-Vung Tau Provincial People’s Committee, the provincial Department of Planning and Investment asked Thi Vai International Port’s developer to begin constructing the port within the third quarter of  this year.