India’s Adani, Japan’s Sumitomo compete to build $2 bln seaport in central Vietnam

India’s Adani group and Japan’s Sumitomo have expressed their interest in building Danang’s VND48.3 trillion ($1.96 billion) Lien Chieu seaport project, the central city says.

A document sent by Danang to the Ministry of Planning and Investment seeking the Prime Minister’s approval of the project says the preferred option is to invest in eight container wharves and six general wharves.

The container wharves will be able to accommodate ships of 50,000-200,000 deadweight tonnages (DWT), while the general wharves can host 50,000-100,000 DWT vessels.

Covering 450 hectares, the seaport will be able to host merchandise exchanges of about 50 million tons a year.

The project also includes an investment of VND3,462 billion ($140.5 million) from the state budget for the common areas. Construction of this section started in September 2023 and is set to be completed in 2025.

Danang said the project has attracted interest from financially strong investors like Adani and Sumitomo.

In particular, Adani has signed an agreement with Danang Port JSC, listed on the Hanoi Stock Exchange (HNX) as CDN, to establish a joint venture for implementing the project.

In December 2023, chairman Gautam Adani said the Indian conglomerate plans to invest up to $10 billion in infrastructure and renewable energy in Vietnam. The group eyes investments in seaports, green energy, power transmission, airports, inland waterways, and other areas of mutual interest, Adani told Vietnamese Prime Minister Pham Minh Chinh.

Meanwhile, Sumitomo, in a joint venture with Vietnamese conglomerate BRG, also targets infrastructure projects in the central city. In November 2021, the joint venture and Danang authorities signed a memorandum of understanding to develop the city’s infrastructure.

In Vietnam, Sumitomo is involved in various projects in different sectors, such as Thang Long Industrial Park in Hanoi; Thang Long II Industrial Park in Hung Yen province; Ho Chi Minh City’s urban railway No.1 project (Ben Thanh-Suoi Tien); the Pha Lai, Duyen Hai 3, Phu My 2-2 and Van Phong 1 thermal power plants; auto parts in Hai Duong province; a supermarket in cooperation with Vietnamese firm BRG; and a skyscraper in Hanoi.