STX mulls project in Vietnam

The South Korean shipbuilder STX is mulling a project to develop a large-scale shipyard in the coastal central province of Khanh Hoa in Vietnam that should be able to build giant vessels of up to 400,000 dwt, a local official said.

A source from the provincial Service of Planning and Investment said South Korea?s STX Shipbuilding, a member of STX Group, has proposed to develop a shipyard costing $500 million at Van Phong Bay. The proposal has received preliminary support from the provincial government and its relevant agencies.

Nguyen Xuan Long, director of the planning and investment service, said that the province and its agencies were putting more efforts on attracting more foreign investment. Therefore, provincial authorities were asking the central government and the Ministry of Planning and Investment (MPI) to give the green light for the investor to go ahead.

If approved, this project will help boost socio-economic development in the province as well as rank Vietnam in the list of the biggest shipbuilders in the world. Besides, shipbuilding is one of the key industries that Khanh Hoa wants to develop, he said, adding that the project would also help create more jobs for locals.

The province and its agencies are now assessing the possible impacts by the project on the environment.

Khanh Hoa Province is also home to another shipyard invested by a 50-year, 70/30 joint venture between the Hyundai Group of South Korea and the Vinashin Business group, which is the new name of the Vietnam Shipbuilding Industry Corporation (Vinashin).