Binh Dinh province eyes 500ha port for controversial steel project

Binh Dinh province is seeking the Ministry of Planning and Investment's appraisal for a 497-hectare port project to serve the planned mega Long Son Iron and Steel Complex, which has sparked environmental concerns among local residents.

The VND6.8 trillion ($289.6 million) port project is envisaged to cover 473 hectares of water and 23 hectares of land. It would include 10 wharves, able to serve ships of 250,000 deadweight tons (DWT), and have an annual capacity of handling 21-23 million tons of cargo per year.

The south-central coastal province estimated the project would employ 7,500 people, including 3,000 in the first phase, and contribute VND20.52 trillion ($874.1 million) to the province’s gross regional domestic product (GRDP).

Binh Dinh expects the project to boost its local sea-based economy, support industries, and industrial and maritime sectors.

Following the MPI's appraisal, the project documents will be submitted to the Prime Minister for in-principle approval.

A part of the project is in the same area as an offshore wind power project being surveyed by German firm PNE. Relevant parties have decided to remove the overlapping area from the site being surveyed by PNE, according to provincial officials.

Vietnam’s steel output in the first four months of this year reached 8.87 million tons, down 22.4% year-on-year, amid decreases in global demand, according to the Vietnam Steel Association. Meanwhile, steel sales fell 23.1% to 8.1 million tons in the period, including 2.3 million tons for export, down 6.2%.

The Long Son Iron and Steel Complex and port have caused public concern in the central province of Binh Dinh regarding the risk of environmental pollution and damage to natural landscapes and relics.

According to local data, Lo Dieu hamet, which would be affected by the steel complex project, is home to 563 households with more than 3,000 residents, who mainly make a living from marine fishing, agriculture and forestry. It is also home to 180 fishing boats, including 68 offshore vessels.

"People support the province’s policies, but their livelihoods and health must be guaranteed,” said Nguyen Trong Vien, head of the hamlet's Fatherland Front unit.

As planned, the complex would span 468 hectares with total capital of VND53.5 trillion ($2.28 billion). The project consists of three investment phases, with a total capacity of 5.4 million tons per year. Once operational, it would produce high-quality construction and rolled steel products. In 2022, the provincial People's Committee approved in principle the project invested by Long Son Phu My Steel JSC, a provincial firm.

Nguyen Tuan Thanh, acting Vice Chairman of the provincial People’s Committee, said the project has received in-principal approval from the government. The people's committee has carefully considered project implementation, he said, adding that technology and environmental impact appraisals will be scrutinized by central agencies including the Ministry of Agriculture and Rural Development, Ministry of Natural Resources and Environment, and Ministry of Science and Technology.