The prime minister has agreed to start the VND60trn (VND2.7bn) steel project in Dung Quat Economic Zone in Quang Ngai Province which has been delayed for years, according to the Ministry of Industry and Trade.

The ministry will review the first design to make sure that investors have met technology and environmental commitments.

The Ministry of Science and Technology was asked to work with provincial authorities to monitor progress. The Ministry of Natural Resources and Environment will evaluate the report on the environmental impact.

The Hoa Phat-Dung Quat steel project is a continuation of Guang Lian Dung Quat steel project that was licensed in 2006 with an initial investment of USD1bn by Taiwanese Tycoons Group. Later, the investment was increased to USD3bn in collaboration with another Taiwanese group, E-United. However, construction was slow to start.

Hoa Phat-Dung Quat steel project is a continuation of Guang Lian Dung Quat steel project

In mid-2015, Tycoons halted the project due to financial difficulties and global steel demand. The management board of Dung Quat Economic Zone proposed the prime minister revoke the project's investment certificate. In last October, the steel producer Hoa Phat Group officially proposed to resume the construction of the Guang Lian Dung Quat steel project.

The government recently sent a draft plan to seven ministries to gather opinions. In the plan, the Dung Quat-Hoa Phat steel project would cost VND60trn (USD2.7bn) to build a hot-rolled steel and construction steel project on an area of 350ha. VND40trn will be raised from other sources.

Hoa Phat Group also proposed a plan to develop the steel project with a capacity of four million tonnes per year after operation.