Minister of Industry and Trade Vu Huy Hoang has said that new steel projects using out-of-date technology would not be licensed.

Hoang said that in the past, some localities had granted licences to small-scale steel plants outside planning guidelines. He said their use of backward technology had often led to environment pollution and wasted energy.

The minister claimed that this was one of the reasons for a sudden increase in electricity consumption in recent months.

Under the national master plan for the steel industry for 2007-15, Vietnam hopes to produce 15 to 18Mt of steel a year for domestic use and export.

However, according to the ministry, the total capacity of projects already announced reaches 60Mt/y.

Source: Daily ‘VietnamPlus’, Hanoi