Mr Hai emphasised that the project is very important because it is part of the chemical sector’s development strategy to produce enough fertilizer to meet the increasing demands of the agricultural sector and ensure national food security.

The Chinese Government helped build the plant in 1960 and upgrade it in 2002. Chinese contractors will continue to help the Vietnam Chemical Group upgrade and raise the plant’s capacity from 1180,000 to 500,000 tonnes per year.

Chinese Economic and Commercial Counsellor to Vietnam, Hu Suojin, asked Chinese contractors to obey Vietnamese laws and work closely with Vietnamese investors and sub-investors to execute the project with the highest quality and on schedule.

The project will be carried out at a cost of US$568 million by the chief investor – Ha Bac Fertiliser Company belonging to the Vietnam Chemical Group. It will use modern technology to protect the environment and save energy.

When it is put into operation in 2014 the plant will ensure enough fertilizer for agricultural production, generate jobs for around 400 local workers and contribute around VND200 billion to the State Budget.