Tata Steel Ltd will sign a memorandum of understanding
with state-run Vietnam Steel Corporation on May 29 for
setting up a steel complex, reports quoting VSC chairman
Mai Van Tinh said.
project, involving total investment of $3.5 billion, received
government approval on May 18.
steel complex will come up in the central province of
Ha Tinh, 340 km south of Hanoi. The plant will utilise
iron ore from Thach Khe mine to produce 4.5 million tonnes
of steel products per year, the government said.
March VSC teamed up India''s Essar group and the Vietnam
General Rubber group to develop a $527 million hot-rolled
steel mill in the southern province of Ba Ria-Vung Tau.
Vietnam has also planned several other steel projects
involving steel majors like South Korea''s POSCO in a bid
to reduce its reliance on steel imports
Hanoi-based unlisted VSC has been running several ventures
with foreign companies to expand domestic production.
currently imports steel and billets mainly from China.
Last year Vietnam''s imports of the products edged up 1.8
per cent from 2005 to 5.62 million tonnes, government
January-May this year, Vietnam''s imports of steel and
jumped 39.5 per cent from a year earlier to 3 million
tonnes, prompted by a robust demand of the construction
sector, the General Statistics Office said.