Vietnam Steel Plant Construction Stalls Amid Spill Concerns
April 21, 2017
Vietnam’s prime minister halts work on the project citing last year’s Formosa spill.
A toxic waste spill at the Formosa steel plant last year set in motion one of Vietnam’s worst environmental disasters, killing tons of fish and devastating fishing communities, according to The New York Times. One year later, the country’s prime minister has reportedly halted work on a new $10.6 billion steel plant amid concerns over a similar incident occurring.
Hoa Sen Group announced plans last year for the 4,200-acre complex capable of producing millions of tons of steel a year. Prime Minister Nguyen Xuan Phuc reportedly requested that the company clarify market demand and environmental impact. Since the Formosa accident, for which the company agreed to pay $500 million in damages, the government has increased scrutiny of investments and has said it would not grant licenses to any projects with a high pollution risk, according to The New York Times.
