Lach Huyen financing problem

According to the VietnamNetBridge, the Japanese Embassy introduced Molnykit Company to work with Vinalines to build the first two berths under the public-private partnership (PPP) investment, replacing Mitsui OSK Lines, Nippon Yussen Kaisha and Itochu.

“Although Molnykit Company is a joint venture between the three mentioned-above corporations, which four months ago got approval from Prime Minister Nguyen Tan Dung to be involved in the project, there are concerns that the newly-proposed investor Molnykit’s legal capital was too low to implement the project,” said Vice Minister of Transport Ngo Thinh Duc.

“This case is out of the MoT’s control. We proposed the prime minister accept the new investor based on the guarantee of the Japanese embassy.”

However a senior Vietnamese port source, Ho Kim Lan, secretary general of the Vietnam Ports Association moved to placate fears stressing the administrative nature of the problem. “Cooperation is going on between Japan and Vietnam to initiate the project but I think Japan has committed to the project,” he said in a phone interview with Port Strategy.

However he warned there would likely be some problems on the local side, especially over the issue of links to land transport. “Hinterland connections, the roads and the bridge should be upgraded properly and in a timely manner,” he said.