AFP quoted an official as saying on September 15 that the port and steel mill will be located in the central province of Ha Tinh.

The port will be able to accommodate freighters with a capacity of up to 300,000 tonnes when completed by 2012, according to the official, who spoke on condition of anonymity.

The steel mill, designed with an initial capacity of 7.5 million metric tonnes, will be located about 30km from Vietnam's largest iron ore deposit at Thach Khe. 

“The steel mill is mainly aimed at Vietnam's domestic market, which is rising fast but still depends on imports,” the official said. 

“In the future, its steel products can be sold to neighbouring countries in Southeast Asia,” he added. 

The conglomerate plans to build a second steel mill and a petrochemical complex in Vietnam in future.