By Debarati Roy/ Bloomberg
Mumbai: India’s Tata Steel Ltd., the world’s sixth-largest steelmaker, received approval from Vietnam’s government to set up a steel plant in the Southeast Asian nation with Vietnam Steel Corp., an executive said.
The factory will be built in Ha Tinh province and probably source iron ore from Thach Khe mine, deputy managing director T. Mukherjee said by phone from Jamshedpur. The size and cost of the venture have yet to decided, he said.
Industry and construction account for 41% of Vietnam’s $53 billion (Rs 2,15,075 crore) economy, spurring demand for steel in buildings and appliances. The country’s economy may expand 8.3% this year, the Asian Development Bank forecast in March, the second-fastest rate in the region.
“We are happy that we have got approval to work in Vietnam,” Mukherjee said late on 21 May. “We are yet to decide on the size of the plant.”
Vietnam Steel received government permission to work with Tata on a $3.5 billion steel plant in central Vietnam, the Wall Street Journal reported on 22 May, citing the Vietnamese government.