Steel deep processing can help meet domestic demand better and satisfy high export requirements, National Assembly Chairman Vuong Dinh Hue told Formosa Ha Tinh Steel Corporation (FHS) Wednesday.
He urged the Taiwanese-invested firm to pay more attention to this technology.
FHS, located in Ha Tinh province’s Vung Ang Economic Zone, is the biggest FDI project in Vietnam so far. It plays an important role in the central province’s socio-economic development as also Vietnam as a whole, the top legislator said during a field trip.
With a total investment of nearly $13 billion, FHS employs some 7,000 workers including 6,200 Vietnamese, of whom around 78% are locals.
Hue asked FHS to observe Vietnamese law in production and environmental protection, prepare scenarios to handle any adverse incident in production, ensure social welfare and generate more jobs.
FHS reported that its steel output reached 6.5 million tons in 2021, up 500,000 tons from the previous year. The figure stood at 3.22 million tons in the first half of this year.
Last year, the corporation’s revenue was $5.3 billion, equivalent to 1.5% of Vietnam’s GDP, and its profits hit $1.2 billion. The numbers were $2.7 billion and $270 million in the first six months of 2022, respectively.
FHS has been one of the biggest contributor to the state budget, with $330 million in 2019, $380 million in 2021 and $240 million in the first half of this year.
In April 2016, the corporation was responsible for mass deaths of marine creatures along the coast of the central provinces of Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue. An estimated 70 tons of dead fish washed ashore along more than 200 km (125 miles) of Vietnam’s central coastline, hurting the livelihoods of millions dependent on the fisheries and tourism industries.
Four months later, the corporation paid out more than VND11.5 trillion (about $500 million) in compensation, which was used to help local fishermen find new employment and clean up the contaminated marine environment.
According to the group, it has spent over $1.4 billion on environmental protection facilities so far, or 10.9% of its overall investment capital.
The Ministry of Natural Resources and Environment in early July this year said assessments show that the quality of wastewater discharged into the sea from the Formosa complex from July 2016 to date meets set standards.
The chief legislator also visited Son Duong deep-water port invested by FHS, which is one of the biggest specialized ports in Vietnam. Sitting on an area of more than 1,018.3 hectares, the port can handle ships transporting iron ore and coal with a capacity of up to 200,000 tons.
On the same day, Hue visited VinES Energy Solution JSC, a member of Vietnam’s largest private conglomerate Vingroup, listed on Ho Chi Minh Stock Exchange as VIC.
Covering 12.6 hectares at the Vung Ang Industrial Zone, VinES specialises in manufacturing batteries and accumulators to support electric vehicle business VinFast, the car unit of Vingroup.
The construction of the two-phase plant began in December 2021, with the first phase costing more than VND4 trillion ($170.48 million). The plant is expected to go on stream this year.