The economic zone in north-central Vietnam that houses the Formosa Plastics Group steel mill is likely to see a new multibillion investment from another Taiwanese investor, local authorities revealed.
The administration of the north-central province of Ha Tinh has granted permission for Wei Yu Engineering to prepare an investment proposal for a US$2.5 billion project at the Vung Ang Economic Zone, according to newswebsite VnExpress.
The Taiwanese firm seeks to lease a 1,000 hectare land plot in the EZ in order to launch a $1 billion husbandry and food industrial complex alongside a $1.5 billion seaport.
If approved to implement the costly project, Wei Yu Engineering will be the second major Taiwanese firm to operate in Vung Ang, alongside Formosa – the company behind a high-profile pollution scandal earlier this year.
According to The Saigon Times Online, Wei Yu Engineering’s proposed project also includes the construction of an administrative house and dorm for its experts and engineers, as well as different plants to be used in animal feed production, cooking oil, processed meat, and frozen food.
The Taiwanese investor is committed to using advanced technology and meeting all Vietnamese environment standards. However, it has yet to specify environmental treatment measures, The Saigon Times Online noted.
According to VnExpress, the Ha Tinh investment department has backed Wei Yu Engineering, saying its proposal “suits the province’s investment attraction policy,” which seeks investors in the agriculture field that use modern technology and generate jobs.
The Vung Ang Economic Zone recently emerged as a favorable destination for investors from Taiwan.
Since 2012, Formosa Plastics has disbursed $10.5 billion out of a planned $28.5 billion investment for its steel production in Vung Ang, according to VnExpress.
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