Sumitomo said it will cooperate with some Japanese companies in producing steel for investors and the SMC Company will be in charge of setting up offices, workshops and warehouses.

Demand for steel in the construction of highways, railways and high-rise buildings is expected to rise by 60 percent to 8 million tonnes in 2013 as compared to 2010.

Sumitomo will focus on producing high-quality steel for use in Vietnam in order to earn around US$125 million in revenue by 2015.

Nippon Steel & Sumikin (NISC) and Marubeni-Itochu Steel (Benichu) are also keen to set up joint venture plants in Vietnam.