Foreign firms interested in Vietnam steel sector

Vietnam Steel Producers' Association indicates that several big companies are interested in steel manufacturing projects in Vietnam. South Korean steel giant POSCO is planning to invest about $1 billion in a steel laminating project that will produce 3 million metric tons of steel each year. Taiwan's Sunsteel group intends to form a steel complex with total investment of $1.9 billion that will produce 4.5 million metric tons of steel annually in Thach Khe District, Ha Tinh Province. In addition, another Taiwanese company, Tycoons Worldwide Steel, has applied for steel refinery plant license worth $1 billion in the Dung Quat Economic Zone. Vietnam Steel Producers' Association said that the country's demand for steel sheets is indicating an upward trend. Vietnam's import capacity of steel sheets amounts around 3.5 million metric tons annually. This figure is expected to increase to 4.7 million metric tons in 2010 and 7.2 million metric tons in 2015. However, Vietnam has only one steel sheets manufacturing plant with a capacity of 400.000 metric tons annually. This situation is providing a good opportunity for foreign companies.