What is the scale of the proposed steel project at Lo Dieu beach?

The 53,500 billion VND steel project built in Hoai My commune, Hoai Nhon town, with a capacity of 5.4 million tons per year, will create a boost for local development, according to Binh Dinh leaders.

The above-mentioned steel complex was proposed by Long Son Company Limited ( Ninh Binh ) to be invested in Binh Dinh in early 2021. At this time, the project was calculated to cost more than 56,000 billion VND, built on an area of 500 hectares, with a capacity of 5.4 million tons per year. Along with the steel factory, the enterprise proposed to build an international port.

After appraisal, the project was granted investment policy by the province in November 2021. Initially, the enterprise wanted to locate the steel factory in My An and My Tho communes, Phu My district. Because this area has 400 hectares of forest land, the People's Committee of Binh Dinh province asked the Ministry of Agriculture and Rural Development to convert the land for construction. Provincial leaders said that the large-scale steel project contributes to promoting the local socio-economy.

Perspective of Long Son Iron and Steel Complex project. Photo: Binh Dinh Investment Promotion Center — Perspective of Long Son Iron and Steel Complex project. Photo: *Binh Dinh Investment Promotion Center*

Binh Dinh authorities also calculated that the total demand for steel in Vietnam is estimated at about 14 million tons per year. The Formosa Steel Plant (Vung Ang, Ha Tinh) only supplies about 5.5 million tons per year and Hoa Phat Dung Quat supplies about 2.7 million tons per year, so the country has to import 5.8 million tons per year. Therefore, the Long Son iron and steel project with a capacity of 5.4 million tons per year is very necessary.

However, during the survey of Phu My district residents, the project encountered some objections. In addition to the argument that steel projects in other localities had caused environmental incidents, residents said that previously, there had been a titanium mining enterprise in the area, leading to the destruction of poplar forests and the phenomenon of flying sand, jumping sand, and desertification of the land.

By the end of 2022, the investor proposed to build a project in Lo Dieu village, Hoai My commune, Hoai Nhon town, 30 km from the old location. The project was then granted a new investment policy, with a scale of 468 hectares, with a total capital of VND 53,500 billion, nearly VND 3,000 billion lower than the initial proposal. The project is divided into three investment phases, with a capacity of 5.4 million tons per year, including quality fabricated steel products, construction steel, and rolled steel. Phase one of the factory is expected to be completed by the end of 2024.

Along with the steel complex, Binh Dinh People's Committee proposed to build a specialized port with a total investment of 6,800 billion VND to serve the project's import and export cargo transportation. The port has an expected area of 500 hectares, of which more than 470 hectares of water surface, receiving ships with a capacity of 250,000 DWT, with the capacity to load and unload 21-23 million tons of cargo per year.

The provincial government calculates that the steel plant and port will contribute about VND4,926 billion to the budget during the construction phase. When the entire project is put into production, it will contribute nearly VND10,400 billion to the budget, contributing a total local product of more than VND20,500 billion; creating jobs for more than 7,500 people. The province considers this a leading industrial project that will lead and create a boost for local economic development.

Lo Dieu from above. Photo: Thach Thao — Lo Dieu village where the steel project is proposed to be built. Photo: *Thach Thao*

However, the steel factory project did not gain consensus from the majority of Lo Dieu residents due to concerns about negative environmental impacts and social security. According to the residents, from 120 households after 1975, there are now more than 500 households with about 3,000 people. Lo Dieu has both sea and forest, as well as agricultural land. Regarding the marine economy, the village has 180 fishing boats, of which 60 are offshore fishing boats, many households raise shrimp and bird's nests. This land also has great potential for tourism development.

Residents are also concerned that the resettlement site is not as good as their current residence. If more than 500 households are relocated elsewhere, the Lo Dieu site will be wiped out. Some people are also concerned about the capacity of the project investor, who previously specialized in cement and had not yet undertaken such a large-scale steel project.

Chairman of Binh Dinh Provincial People's Committee Pham Anh Tuan said that the province's consistent viewpoint is not to trade off the environment for economic development. Before implementing investment projects, they must comply with the following principles: advanced, modern technology, environmental protection. People affected by the project when resettled must have a better life than their old place, creating a more stable and long-term livelihood.

According to Mr. Tuan, the project is currently only in its initial stages, with many more steps to follow, such as research, survey, inspection, project planning, environmental protection plan, and technology. These contents will be calculated, analyzed, and synthesized to develop an investment project for submission to the Government, ministries, departments, and central agencies for appraisal and approval.

On May 30, at a dialogue with Lo Dieu residents about the project, Binh Dinh Provincial Party Secretary Ho Quoc Dung pledged that the project's steelmaking technology would be closed and would not negatively impact the environment. If the steel plant were to discharge wastewater into the sea in the future, he would take responsibility.

Pham Linh

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