Tata Group to set up $5 billion steel factory in Vietnam

[karan.1970]

Looks like TATA has taken Vietnamese for a ride. In due time Vietnamese will realize they had wrong impression of "friend".

Looks like some one is really burning inside..

Its not friendship only mate.. Its called doing business..

 

[Markus]

Looks like TATA has taken Vietnamese for a ride. In due time Vietnamese will realize they had wrong impression of "friend".

^ Look who's talking.

 

[INDIC]

Bata Pakistan to setup $30 billion shoe factory in somalia.
we will talk about it when its setup, right now its just talk
with this speed tata own half of this world.

Didn't know that Bata is a Pakistani company.

 

[agamdilawari]

Didn'y know that Bata is a Pakistani company.

Naaa...u have no right to stop one from day dreaming

 

[Hindustani]

A positive step forward

This is pretty good news, long live India - Viet Nam friendship.

Absolutely man

Long live both India and Viet Nam.

 

[nawabo ke nawab]

 

[Battle of Bach Dang River]

Looks like TATA has taken Vietnamese for a ride. In due time Vietnamese will realize they had wrong impression of "friend".

Don't worry, Vietnam-India has 40 years of traditional friendly relation.
We know who are our friends, who are our enemies.

 

[Skull and Bones]

Don't worry, Vietnam-India has 40 years of traditional friendly relation.
We know who are our friends, who are our enemies.

On the contrary, they don't have any remorse while taking loans from India.

 

[Martian2]

Tata can't build a $5 billion steel plant for the tiny $123 billion Vietnamese market

I want to follow up on why I said Tata's proposal for a $5 billion steel plant in Vietnam is ridiculous.

Vietnam's economy is only $123 billion (see List of countries by GDP (nominal) - Wikipedia, the free encyclopedia).

Tata's proposed investment would equal 4% of Vietnam's economy! That's unheard of. Who will consume all of that steel production? You can't export it, because the Chinese have much larger economies of scale and lower prices. The domestic Vietnamese economy is way too tiny to make use of all that steel production.

In conclusion, Tata's proposed steel plant in Vietnam makes absolutely no economic sense.

If Tata had announced a $5 billion steel plant for China, I would have shrugged. It's a drop in the bucket for China's $8 trillion economy. Since China is producing 18 million cars a year and is the world's largest producer of white goods (e.g. refrigerators, clothes washers, dryers, etc.), it is economically feasible. However, putting a $5 billion steel plant in Vietnam is hogwash.

 

[IndoUS]

Steel plant can supply steel back to India, they get the ore from say Australia and other surrounding countries, then process it at the plant then send it to India or to other buyers. Great for India and Vietnamese trade, and friendship.

 

[Martian2]

Steel plant can supply steel back to India, they get the ore from say Australia and other surrounding countries, then process it at the plant then send it to India or to other buyers. Great for India and Vietnamese trade, and friendship.

Baloney. It's more efficient to just build the plant in India. Why go to the trouble of building it in Vietnam to have the privilege of shipping it out of their crappy infrastructure? When the steel arrives in India, it has to wait two months in port and get shipped on a second set of crappy infrastructure.

Why not just build a $5 billion steel plant near Indian factories? Actually, that's what they would do.

 

[danger007]

Tata can't build a $5 billion steel plant for the tiny $123 billion Vietnamese market

I want to follow up on why I said Tata's proposal for a $5 billion steel plant in Vietnam is ridiculous.

Vietnam's economy is only $123 billion (see List of countries by GDP (nominal) - Wikipedia, the free encyclopedia).

Tata's proposed investment would equal 4% of Vietnam's economy! That's unheard of. Who will consume all of that steel production? You can't export it, because the Chinese have much larger economies of scale and lower prices. The domestic Vietnamese economy is way too tiny to make use of all that steel production.

In conclusion, Tata's proposed steel plant in Vietnam makes absolutely no economic sense.

If Tata had announced a $5 billion steel plant for China, I would have shrugged. It's a drop in the bucket for China's $8 trillion economy. Since China is producing 18 million cars a year and is the world's largest producer of white goods (e.g. refrigerators, clothes washers, dryers, etc.), it is economically feasible. However, putting a $5 billion steel plant in Vietnam is hogwash.

You and your ranting... first change your flag... then we will discuss....

 

[Martian2]

You and your ranting... first change your flag... then we will discuss....

When Tata makes a stupid announcement that makes no sense, I will expose the propaganda.

It makes no economic sense and I'm not happy when a leading Indian company goes around saying crap. They lose credibility.

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Citation for no domestic Vietnamese demand for steel.

http://newsen.steelhome.cn/2012/06/05/n629005.html

"Vietnamese Steel Industry Sees Low Consumption in May 2012
2012-06-08 08:38:46

The Ministry of Industry and Trade said that the steel industry has seen a strong decrease in production and consumption in May 2012 against April 2012.

Specifically, the production volume of construction steel in May 2012 alone reached 410,000 tonnes, a reduction of 50,000 tonnes against April 2012.

In the first five months of 2012, steel production reached nearly 2 million tonnes or a decrease of 198,000 tonnes over the same period of 2011. Also in May 2012, stockpiled volumes stood at 320,000 tonnes or up by 65,000 tonnes against April 2012. Steel consumption is estimated to have reached 370,000 tonnes in May 2012 or a decrease of 73,000 tonnes against April 2012.

The ministry reports that steel production companies have to moderate their production to minimize stockpiled steel volumes. It said the import of steel ingots also reduced due to stockpiled volumes.

In the first five months of 2012, the import of pig iron is estimated to have hit 168,000 tonnes worth USD 108 million, a 67% decrease in volume and 67% in value over the same period of 2011.

Due to sluggish steel consumption, local steel manufacturers have had to slash their selling price between VND 100,000 to VND 150,000 per tonne, attributed to a finance shortage amongst property developers. (article continues)"

 

[karan21]

Baloney. It's more efficient to just build the plant in India. Why go to the trouble of building it in Vietnam to have the privilege of shipping it out of their crappy infrastructure? When the steel arrives in India, it has to wait two months in port and get shipped on a second set of crappy infrastructure.

Why not just build a $5 billion steel plant near Indian factories? Actually, that's what they would do.

well dude tata is now close to a 100 bill doll company, if they have made a decision they r not idiots. their iq is prolly higher than urzz, thats why they have 15 bill in cash pile to invest. tata also bought a coal mine in indonesia, and is buying many in africa. they want to buy overseas assets and they have money. i dont understand what is problem???

 

[karan21]

Baloney. It's more efficient to just build the plant in India. Why go to the trouble of building it in Vietnam to have the privilege of shipping it out of their crappy infrastructure? When the steel arrives in India, it has to wait two months in port and get shipped on a second set of crappy infrastructure.

Why not just build a $5 billion steel plant near Indian factories? Actually, that's what they would do.

well dude tata is now close to a 100 bill doll company, if they have made a decision they r not idiots. their iq is prolly higher than urzz, thats why they have 15 bill in cash pile to invest. tata also bought a coal mine in indonesia, and is buying many in africa. they want to buy overseas assets and they have money. i dont understand what is problem???