South Korea’s Doosan is mulling a project worth US$250 million in Dung Quat Economic Zone to manufacture heavy equipment in the power generation and construction industries, a source from the zone said on August 30.
Leaders of Doosan at a meeting with Dung Quat Economic Zone authorities last week said the corporation was looking for a site for building a large-scale factory. The facility will manufacture atomic power equipment, thermo-power turbines, seawater treatment equipment, forklifts, and construction machines, said Cao Xuan Trung, deputy director of the Dung Quat Investment Promotion Centre.
Trung said that Doosan wanted to have an area of between 70 and 100 hectares to build the factory, and the site should be close to a seaport and in good infrastructure condition to ensure easy road traffic access.
Doosan leaders at the meeting agreed to choose the project site in an area east of Dung Quat Economic Zone near Dong Ruon Residential Area.
Doosan also requires a port area to build a berth for loading materials and equipments. The corporation expects to export 80% of its output.
This will be the largest tool-manufacturing project of its kind in Vietnam, and will be crucial for Dung Quat Economic Zone in attracting other satellite investment projects, according to Trung. Doosan showed keen interest in the then Dung Quat Industrial Park in 1999-2000, but skipped its investment plans there since the zone was not much developed.
The corporation returns now because Dung Quat has been upgraded into an economic zone since March this year, and because the government has shown its determination to push forward the country’s first oil refinery project there, Trung said. Doosan leaders said at the meeting they were highly confident on the feasibility of the project, and would submit an investment proposal soon.
Doosan is operating a factory named Hanvico worth US$25 million in Hai Phong City.
Dung Quat Economic Zone is now becoming a bright spot for foreign investors. Recently, Tycoons Worldwide Group (Thailand) has received the green light from the Vietnamese government to build a steel factory there worth over US$1 billion.