Ba Ria – Vung Tau’s steel industry: Challenges in developing time
-   +   A-   A+     21/07/2008
Ba Ria – Vung Tau is changing, becomes a big steel industry’s center. The vigorous development of this heavy industry has and will bring high industrial production value for the entire province and all the country.

Ba Ria – Vung Tau is changing, becomes a big steel industry’s center. The vigorous development of this heavy industry has and will bring high industrial production value for the entire province and all the country.
However, besides the achievement, steel industry of Ba Ria- Vung Tau still has many worries, which need have preparation to initiatively solve environmental pollution, shortage of raw materials for production...

Up to now, there are 23 licensed steel production and processing projects, among them 15 domestic projects and 8 foreign investment projects.
The total registered capital of these 23 projects is up to US$ 3.286billion, in which was US$2.6billion FDI. The entire land area for 23 projects is 480 ha.
Many big projects with the total invested capital up to millions of US dollars, in which the biggest one is the steel project of Posco Vietnam Company Limited (
Korea) with the total capital of US$1.128billion. The Essar – Vietnam hot-rolling steel mill project worth US$527million. This project is a joint venture among Vietnam Steel Corporation, Vietnam Rubber Group and Singapore partner.

Apart from big projects with foreign investment capital, there are still many steel production projects with domestic investment capital. Prominently, Phu My Steel Mill of Southern Steel Company (with the investment capital of US$135million, the capacity of 900,000tons/year), Phu My Cold Rolling Steel belongs to Vietnam Steel Corporation (worth USD118million, and the capacity of 355,000tons/year), Viet Steel Company with 3 projects worth the total capital of US$170million, the capacity of 2,200tons of products/year.

Out of these 23 projects, there were some projects operating with the capacity of about 2million tons/year. If all these projects are completed and gone into operation, the entire products providing to domestic market are approximately 13million tons/year. This is a significant result, contributes in enhancing industrial product value in the province’s GDP.
Nevertheless, in order to have more than 13 million tons of products per year, the price they have to pay is not small if there is no considerable preparation. Presently, all the steel projects are in Industrial Zones. In this location, these plants can take many advantages. Firstly, take the initiate in input materials, especially burning gas and electricity.
However, with the characteristic of the steel industry is “gobbling up” a large number of fuel and energy, these plants cannot avoid difficulties of fuel and energy sources. In the dry season of this year, the very steel companies are the subjects must to save and reduce electricity usage. Environmental pollution is also warning. Steel is the production industry which will “supply” sizable harmful industrial rubbish. In addition, there is thousands of solid waste need to be solved.

According to the statistics, there is no industrial waste treatment plant and harmful solid waste treatment companies in the province.
Therefore, the quantity of harmful industrial waste from steel industry will “freely” discharge to environment which creates a serious corollary for future. Another alarming matter is the difficulty of raw materials source in the first six months of the year. To create conditions for steel industry of the province stably developed and have no corollary, it needs to have a considerable preparation.
At first, it is recommended to have an active plan for fuel and energy sources, especially electricity so that plants can operate effectively.
Then, it must build modern solid waste treatment system, industrial sewage treatment system, well - manage environmental matter at plants to help steel industry join into the process of economic growth stably and firmly.


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