According to a report by VietNamNet (Bà Triệu, Vietnam), a large pulp mill project planned for the country is experiencing regulatory frustration prior to starting up. In 2007, the Hau Giang People’s Committee licensed Lee & Man Group (Hong Kong, China) to develop a $348 million pulp mill with an annual capacity of 330,000 metric tpy and a $280 million paper manufacturing factory with an annual capacity of 420,000 metric tpy. But now, the country's Ministry of Industry and Trade (MoIT) is asking for the government to stop the development of the $348 million pulp mill due to concerns over environmental pollution. 

When the two projects were licensed, the MoIT required the investor (Lee & Man) to submit the environmental impact assessments for its factories. In 2008, the province approved the environmental impact assessment for the paper factory. However, construction was resumed only in December 2012, after being delayed for numerous years.

 

The investor had yet to renew the environmental impact assessment despite regulations stating that the investors have to submit one every two years. This oversight has led to numerous problems with re-certification as of 2016. According to one representative of the MoIT, the south-western region’s terrain is "not suitable for developing material trees". On June 20, Vietnam Association of Seafood Exporters and Producers (VASEP) proposed the Vietnamese government scrutinize the waste treatment system of the paper manufacturing factory before it comes into operation.

 

If Lee & Man can work past these final regulatory obstacles, the operation is set to begin this month or as soon as it receives final approval from the Vietnamese government and ministries.