HCMC – The southern province of Ba Ria-Vung Tau will not license new steel projects from now on as such projects consume much electric power and water, which proves a big burden for the locality, said a leader of the province.
Ho Van Nien, vice chairman of the province, told the Daily late last week that because the province is facing a severe shortage of power and water for industrial production, so it will definitely reject new steel projects in the coming years.
As observed by the Daily, Ba Ria-Vung Tau is having the most licensed steel projects in the country with 18 projects, including 10 projects outside the national master plan for steel industry development approved by the Government. Steel projects in the province have a total capacity of some 3.7 million tons of ingots and 3.3 million tons of other steel products.
Nien said that to cut down the unwanted steel projects in the locality, the province has just required related agencies to consider revoking four steel projects that are moving at a snail’s pace. However, he did not mention the names of the four steel projects that will possibly be cancelled in the coming days.
Nien said that the axe could fall on more steel projects beside the four just mentioned, adding that the provincial government would only retain those steel projects that produce high-grade products.
“In the time to come, the province will call investors for projects that consume less power and water due to the limited supply capacity in the province,” he said.
The government has announced it will stop licensing steel projects using outdated technology, following complaints of inordinate power consumption by local steel producers.