Unleashing the Giant: $575m Dak Nong Aluminium Project Springs into Construction

Vietnam: The 114-hectare site for the $575 million Dak Nong Aluminium smelting plant in this Central Highland region was cleared by bulldozers on Thursday. The factory will be the first of its kind in Vietnam to make Aluminium bars, according to Trade and Industry Minister Vu Huy Hoang, who also stated that it would be crucial to the Central Highlands' long-term socioeconomic development.

Hoang continued by saying that the plant, which has a 450,000-ton capacity, would be crucial to the overall growth of domestic Bauxite exploitation and Aluminium production projects.

The plant at Nhan Co Industrial Park in Dak R'lap District, Dak Nong, is being built and developed by Tran Hong Quan Trading Ltd Company and is anticipated to be finished in two years. All materials for the plant will be provided by the Nhan Co alumina project, which the Vietnam National Coal and Mineral Industries Holding Corporation will put into operation.

Three phases make up the project. The plant is anticipated to reach a 150,000-tonne annual production capacity in the first phase by 2016. By 2017, the plant's second phase is anticipated to have a 300,000-ton annual capacity. By the start of 2019, the last phase is anticipated to have a 450,000-tonne annual capacity.

Viet Nam has the greatest Bauxite reserves in the world, with Dak Nong alone holding more than five billion tonnes. With great prospects of discovering deposits of approximately 11 billion tonnes, the Ministry of Natural Resources and Environment is presently conducting exploration.

This is the first Aluminium project in Vietnam with a domestic business as investor, and it is anticipated to be crucial to the socioeconomic development of both his region and the entire nation.

The project management board of the Dak Nong Aluminium Smelter project possesses the expertise to select the most suitable contractors. They ensure that the project's selection criteria, especially those emphasizing cost-effectiveness and technical feasibility, are adhered to.

The management noted that this will increase the project's value and foster Vietnamese competency. Vietnamese contractors will manufacture and install smelter-related machinery and parts in accordance with European quality requirements. This was considered when deciding on European technology for the smelter.

The Government has approved the new Aluminium electrolytic technology to be utilized in the project, according to Tran Hong Quan, the company director, and this was expected to draw more investors to the nation's Aluminium industry. The Dak Nong project's tax exemption policies were addressed in Decision 822-QD-TTg, which the Prime Minister released on May 30.

The policies include a four-year total income tax exemption starting when the plant produces taxable income, a nine-year 50% income tax exemption following the four-year total tax exemption period, and a 30-year 10% tax rate following the nine-year 50% income tax exemption. The importation of goods to develop fixed assets for the project will also be tax-exempt.