On January 18, 1994, The VSC-POSCO Steel Company was established under the investment license No. 769 / GP among the investors of the Vietnam Steel Corporation, Posco Company, Posco processing & service Co.ltd and Hai Phong Steel and Construction Material Joint Stock Company (HASCOM)

- Point b, Article 3,stated that "The legal capital of a joint venture company is USD 16,863,000. The Haiphong Mechanical and Construction Material Enterprise contributes US $ 2,700,000, accounting for 16% of legal capital with the right to use 6ha of land in 25 years.

- Article 4: The duration of operation of a joint venture company is 25 years from the date of issuance of the investment license

On September 12, 1994, the Prime Minister issued  a Decision No. 488 / TTg, which stipulates:

- Article 1: Reclaim 60,093 m2 of land ... to build steel rolling mills ... The duration of land lease is 25 years from the date of issuance of investment license.

- Item 1, Article 2, stated that: Pursuant to Article 1 of this Decision, the People's Committee of Hai Phong City has the responsibility: "To issue land use rights’ certificates to VSC-POSCO Steel Company"

However, so far, VSC-POSCO Steel Co., Ltd has not yet received the "Land Use rights’ Certificate" issued by the People's Committee of Hai Phong City, as directed by the Prime Minister in the Decision No. 448 / TTg. has repeatedly contacted to work with the relevant authorities.

On July 11, the People's Committee of Hai Phong City issued a Decision No. 1348 / QD-UBND allowing the Hai Phong Steel and Construction Materials Joint Stock Company (HASCOM) to extend land use and switch to Land lease payment for the whole lease period for the project of building steel rolling line of 350,000 tons per year in An Hong Commune, An Duong District and Quan Toan Ward, Hong Bang District.

At this time, when the joint venture time of VSC-POSCO Steel Co., Ltd is still nearly 3 years (January 18, 2019), the People's Committee of Hai Phong City has the above documents to transfer the land use rights for HASCOM - just a partner in the venture.

We realize that the issuance of the Decision 1348 / QĐ-UBND of Hai Phong City on July 11, 2016 is unreasonable and inconsistent with the Prime Minister's Decision No. 488 / TTg , creating contradictions between the parties in the joint venture.

As a professional association with the task of protecting legitimate interests for member enterprises, the Steel Association recommends Hai Phong People's Committee:

1 / Issuing certificate of land use rights for VSC-POSCO Steel co., Ltd under Article 2 of Prime Minister's Decision No. 488 / TTg

2 / Renewal for VSC-POSCO Steel Co., Ltd is leased to maintain the operation of the plant under the Prime Minister's policy.

3 / Cancellation of the Decision No. 1348 / QD-UBND allowing Hai Phong Steel Construction and Materials Joint Stock Company (HASCOM) to extend the land use term and switch to land lease for one time payment. For the project of building steel rolling line of 350,000 tons / year in An Hong Commune, An Duong District and Quan Toan Ward, Hong Bang District.