The Vietnamese government has established a flexible investment sourcing scheme for the country's largest hot rolled coil steel complex in central Ha Tinh province, local newspaper Vietnam Investment Review reported Monday.

Under a recent governmental direction, foreign investors will have the rights to form a fully foreign-owned company to cover construction of the steel complex with annual capacity of 4.5 million tons near the Thach Khe iron ore deposit, if no Vietnamese enterprises prove financially capable of developing the steel project.

According to a pre-feasibility study, the steel complex will be located 50 kilometers from the Thach Khe iron ore deposit, and require estimated investment of three billion dollars.

Several foreign firms, including Sunsteel from China's Taiwan and Essar from India are showing interest in the project, the newspaper said.

Vietnamese and Russian geologists estimate the Thach Khe iron ore deposit holds reserves of 500-600 million tons, at least 300 million tons of which is thought to be commercially viable.

Vietnam imported over 3.8 million tons of steel billets and finished steel products totaling nearly 1.9 billion U.S. dollars in the first eight months of this year, up 2.6 percent in volume, but down 8.7 percent in value against the same period last year, according to the country's General Statistics Office.

Between January and August, Vietnam imported over 1.3 million tons of steel billets worth 496 million dollars, posting respective year-on-year decrease of 13.1 percent and 14.3 percent.

Source: Xinhua