Vietnam's large-scale energy and mining projects will be greatest ingredients for drawing a planned 9.2 billion U.S. dollars in newly pledged foreign direct investment (FDI) inflows into the nation next year, local newspaper Vietnam Investment Review reported Monday.

Phan Huu Thang, head of the Foreign Investment Agency under the Vietnamese Ministry of Planning and Investment said typical energy and mining projects, currently on the drawing board to be licensed in 2007, will include Nghi Son oil refinery, Mong Duong thermoelectric plant, Thach Khe iron mining and steel refinery, and Dac Nong bauxite mining and alumina refinery.

He said the implementation of the large-scale projects will be a major part in his ministry's plan to attract 9.2 billion dollars in fresh FDI capital in 2007. Meanwhile, realized capital of FDI projects in the country is expected to reach 4.5 billion dollars.

Nghi Son oil refinery, the second of its kind in Vietnam, located in central Thanh Hoa province, 200 km south from Hanoi capital city, is expected to get involvement of Japanese investors including Mitsubishi and Idemitsu. In an initial plan of Nghi Son's major developer, state-owned Vietnam Oil and Gas Corporation ( PetroVietnam), the refinery will need total investment of 3 billion dollars, and produce 7 million tons of petroleum products.

The 1,200-MW coal-fuelled Mong Duong plant, the largest power project in Vietnam, will be jointly developed by the Vietnam National Coal and Mineral Industries Group (Vinacomin) and the AES of the United States.

At the estimated cost of 1.4 billion dollars, the plant will be built under the mode of build, operate and transfer in coal-rich northern Quang Ninh province. It is expected to become operational in 2011.

The state-owned Vietnam Steel Corporation, the developer of estimated 3.5-billion dollar Thach Khe iron mining and steel refinery, is selecting suitable foreign investors for the projects in central Ha Tinh province.

South Korea's Posco, China's Bao Shan, Russia's Everaz, and India's Essar and Tata have shown interests in mining the Thach Khe deposit and building a 4.5-million ton hot rolled coil steel factory.

Meanwhile, China's Chalco, the United States' Alcoa, and Australia-UK's BHP Billiton like to involve in Dac Nong bauxite mining and alumina refinery projects in central highlands Dac Nong province. The state-owned Vinacomin, known as the local partner in the multi-billion dollar projects, has had inked some cooperation deals with foreign firms in the field.

Between January and Nov. 20, Vietnam licensed 734 FDI projects totaling nearly 6.2 billion dollars. As of Nov. 20, it had 6,764 operational FDI projects with total registered capital of nearly 59.1 billion dollars, according to the ministry' statistics.

Source: Xinhua