The Vietnamese steel industry is failing to attract much-needed investment, despite relatively good business results in 2010, said the Vietnam Steel Association (VSA).

The VSA said the sector’s planning and its efforts to attract investors needed to improve.

While provinces have granted investment licences for many projects, there has not been adequate supervision over the progress of these projects.

In response, the Ministry of Planning and Investment ordered provinces and cities to check on local steel projects. Weak projects would be scrapped.

VSA reported that some projects had their investment licences withdrawn last year after failing to carry out projects.