Thanh said that Van Phong will be kicked off by building two sea deep ports in Dam Mon (Van Phong Gulf), allowing to receive container ships with deadweight of 9,000 TEU. The investment for initial kick-off is over one trillion dong, which comes from Vinalines. The kick-off project is designed by Nippon Koei and Port Coast. Chair of Khanh Hoa province’s People’s Committee also signed a decision establishing a steering board of 23 members to kick off Van Phong.

In the master plan on Vietnam seaports until 2020, Van Phong Gulf is the only place to be turned into an international transit port, a focus in the national sea strategy. Van Phong international transit port project has been developed by the transport ministry in accordance with the plan approved by the prime minister in 2005. The project should have been kicked off from 25 January 2008. However, on 15 January 2008, deputy prime minister Hoang Trung Hai asked to stop the project in order to clarify some related problems.

The reason for such suspension was that Posco Steel Corp from the end of 2007 also wanted to develop a project in Dam Mon that would build a steel-thermal-electricity complex with total investment of some USD 11 billion. However, Posco’s project was opposed by many state agencies because they worried that the project may pollute environment, break scene of Van Phong Economic Zone and occupy the deep seaport of Van Phong International Transit Port. Finally, the prime minister on 13 November 2008 declined establishment of the steel mill in Van Phong.

Domestic and foreign economists said that thanks to convenient geographical position and natural features of Van Phong Gulf, building an international transit port will be an important thing, strongly promoting Vietnam’s socio-economic development.

PhD. Chu Quang Thu, former acting director of Vietnam Maritime Department, said that because Vietnam has not had an international transit port, it has to transit goods in Singapore, Hong Kong, costing Vietnam some USD 3.4 billion each year.

Engineer Doan Manh Dung, former chief of Vietnam Maritime Department’s seaport infrastructure division, said that once the Kra canal project (South Thailand) of Thailand is completed, Singapore transit port will fall into off-side position because ships running the Europe-Asia path do not want to run across Malacca channel that is both far and famous for pirates.

At that time, Van Phong International Transit Port will replace Singapore port. The world’s history recognised that the main reason that help Singapore thrive off after independence was thanks to benefits from building the international transit port.