The complex, the biggest steel plant in Vietnam, will have annual output of 4.5 million tonnes of steel, according to VnSteel, the country’s largest steel maker.

Tata Steel will hold a 65 percent stake, while VnSteel, 30 percent and VICEM, 5 percent.

Located in Vung Ang Economic Zone, the project will build a cool-rolled steel plant in the first phase, which is scheduled for completion in 2010.

Tata Steel Managing Director Muthuraman said at the signing ceremony that Vietnam is an ideal destination for foreign investors and pledged to meet all requirements for corporate management, environmental protection and healthy business.

According to VnSteel General Director Dau Ngoc Hung, the agreement will facilitate his corporation’s move to expand operations and establish long-term ties with its strategic partner Tata Steel to jointly explore opportunities and market potential both in and outside Vietnam. The project is expected to improve Vietnam’s position in the global steel industry and fully tap the country’s natural resources, Mr Hung said.