Hau Giang plays hard ball

illustration photo

Two paper and pulp projects developed by Hong Kong-based Lee&Man Group are being focused on. Accordingly, in April 2011 the Hau Giang Provincial People’s Committee sent a dispatch to the Hong Kong investor asking it to report on the projects’ progress.

In a reply to the provincial authorities director Cheng Ching Kay at Lee&Man Paper Vietnam Company Limited - the Lee&Man Group’s local subsidiary - confirmed the paper plant would begin operations from August, 2013.

Accordingly, construction of the paper plant restarted in December, 2010. Until present, the project has completed roofing installation, 70 per cent of storehouse’s foundation work and will soon start site clearance.

In respect to the paper factory, the project has finalised pile positioning and set to work with construction contractors in September, 2011. Import of machinery and equipment is slated to begin from June, 2012.

Construction of other associated items such as the office building, a water supply plant, waste-water treatment facilities and a wharf will kick-off in 2012 and be completed in 2013.  

The director also asked the provincial authorities for support in building internal roads and assisting the firm to recruit 100 local labourers for further training in China.

In respect to workers’ housing the paper firm asked the province for lease of 5-10 hectares for 70 years.

In June 2007, Lee&Man Paper Vietnam and Lee&Man Pulp Vietnam were granted licences to develop two projects in Song Hau Industrial Zone in Chau Thanh district for 50 years.

Lee&Man Paper Vietnam received approval to build a $280 million packaging paper plant over 200ha with an annual capacity of 420,000 tonnes, while Lee&Man Paper Pulp Vietnam got the green light to develop a  pulp mill with an annual production capacity of 330,000 tonnes on a site of 70ha, at a cost of $348 million.

Another delayed project in Hau Giang is a $48.3 million shipyard project. Hau Giang shipyard project formerly developed by Vinashin was handed over to Vinalines who was given 152ha land areas to carry out a seaport and associated logistic facilities construction project.

The provincial authorities also asked Vinalines to reconsider the construction of a 30ha shipyard in the area since it may hurt the environment and local water resources.

According to Hau Giang deputy chairman Nguyen Lien Khoa, the province would intensify efforts to revise investment projects across the province and delayed ones would face stiff penalties.