According to reports, Amata VN Public Company Limited, a subsidiary of Thailand-based Amata Corporation PCL, has been licensed to develop the first phase of a USD 1.6 billion industrial and urban project in the north-eastern province of Quang Ninh, Vietnam.
The project will be known as ‘Amata Ha Long City’ and is planned to be built in 5,789 hectares of land. The city will be built in a strategic location close to airports and seaports and will be an integrated industrial city designed for leading towards a smart city in future.
The mega project is expected to be executed in three phases with the first phase involving construction in an area of 714 hectares which is expected to begin in 2020.
The company Amanta VN has its presence in Vietnam for more than 23 years with its first industrial city project Amata City Bien Hoa, spread over an area of 700 hectares in the south-eastern province of Dong Nai, Vietnam. This city has 165 companies from 21 countries and involved a total investment of USD 2.7 billion.
Vietnam steel production to grow over 20% in 2018
According to Vietnam Steel Association (VSA), in 2018 country’s hot-rolled steel production is expected to grow by 154% followed by welded steel pipe (15%), colored galvanised steel (12%), construction steel (10%), and cold rolled steel (5%).
This is because a line-up of projects will be put into operation in 2018, Hoa Phat Group’s steel project in Quang Ngai province with capacity of 2 MnT per year, Hoa Sen Group’s cold-rolled steel production line in Binh Dinh province with capacity of 350,000 tonnes per year and three construction steel projects of Pomina, Vietnam-Italia and Tung Ho companies which can annually produce over 1.8 MnT of steel.
Production of iron is expected to rise 75% against 2017 to 7,500 tonnes while that of steel billet will rise 14% to 14,000 tonnes.
In a report from VSA, in 2017 more than 22 MnT of steel was produced up by 23.5% against previous year. The country exported about 5.5 MnT of steel, a surge by 29% y-o-y basis and imported 20 MnT of steel from foreign countries, a decline of 14% against the imports in 2016.
Impact of U.S. Tariffs on Vietnam
The U.S. tariffs on steel and aluminum announced by the Trump government is likely to have minimal impact on Vietnam. In 2017, Vietnam did not account for top 10 sources of U.S. steel imports and even the percentage share of Vietnam in U.S. total steel imports came down by 19% against 2016. However, the tariff rise will increase competition for local firms, especially in the domestic market. Chinese products meant for the U.S. could easily flow into Vietnam. Overall supply can also increase in Southeast Asia leading to a drop in prices, which can ultimately benefit the end consumers.
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