The prime minister last week turned down a proposal by Taiwanese giant
China Steel to build a US$500-million cool-rolled sheet steel plant in the
country, reasoning that if allowed, it would negatively impact local
The prime minister’s decision was in response to a proposal jointly made
by the Ministry of Planning and Investment (MPI) and the Ministry of
Industry (MoI) after China Steel entered an application for a cool rolling
sheet steel plant in the southern province of Dong Nai. The ministry’s
insiders attributed the refusal to the fact that China Steel’s plan was
not in line with the approved steel development strategy for 2010 and had
a good chance of causing supply to exceed demand.
Although Vietnam currently relies on 300,000 and 400,000 tones of imported
cool rolling sheet steel annually, the country’s steel conglomerate
Vietnam Steel Corp. (VSC) forecasts that domestic demand will be satisfied
by 2004 when its US$135-million steel plant becomes operational. The VSC
plant is under construction in Ba Ria-Vung Tau Province, and is designed
to produce 405,000 tonnes per year.