Construction giant Vinaconex plans to transfer capital of port project in Quang Ninh province

Vinaconex is seeking to transfer two million shares, or 40% of the charter capital of Van Ninh International Port JSC in Quang Ninh province, to new investors.

Vinconex, listed on the Ho Chi Minh Stock Exchange as VCG, said that the divestment of its entire stake in Van Ninh is expected to be completed before June 20, 2024, without giving a reason for the decision.

Vinaconex contributed 40% to Van Ninh International Port's charter capital in September 2021.

According to Vinaconex's website, Van Ninh is one of Quang Ninh province's four long-term growth-driver projects, and will serve as a domestic commodities transshipment hub. As a gateway to China and ASEAN, the port is expected to create new opportunities and successes for the Mong Cai border gate economic zone.

The project covers 82.79 hectares, with a total investment of nearly VND 2,248 billion ($88 million) from Van Ninh International Port JSC in phase one. Construction started in October 2021.

However, according to reports from the investor, during the implementation process, the project has encountered a number of difficulties, causing unsteady progress, which means the project will not be completed in the fourth quarter of this year as planned.

The main reason for the delay is a lack of raw materials for the project. The materials still needed for leveling the ground and building roads connecting the project amount to about 1.2 million m3 of sand and 500,000 m3 of soil and rock.

Currently, the sand from dredging in front of the wharf is insufficient to level the sea bed, while the construction unit has faced numerous challenges sourcing materials from neighboring provinces.

The project has seen only dredging, pumping sand to level the project site, and constructing the dike line basically completed thus far.