Japan's JFE Steel eyes $4 billion Vietnam mill

HANOI (Reuters) - JFE Steel Corp, a unit of JFE Holdings Inc (5411.T: Quote, Profile, Research), has submitted a proposal to invest $4 billion in a steel mill in central Vietnam, state media reported on Friday.

The mill, which will have an annual capacity of 5 million tonnes, would be located in Dung Quat in the central province of Quang Ngai, the Tuoi Tre (Youth) newspaper quoted Vietnam Steel Association Chairman Pham Chi Cuong as saying.

Last month, Malaysia's Lion Industries (LLBM.KL: Quote, Profile, Research) won approval to invest in a $9.8 billion steel mill joint venture with Vietnam's top shipbuilding group Vinashin.

Apart from the Malaysian venture, Hanoi has approved investments by foreign steel makers of at least $17.3 billion this year, including a $7.8 billion project by Taiwan's Formosa Heavy Industries and a $5 billion venture by India's Tata Steel (TISC.BO: Quote, Profile, Research).

Analysts have said most of the planned mills would serve both the domestic and export markets, especially in Southeast Asia because of strong demand from the auto and home appliance industries.

(Reporting by Nguyen Nhat Lam; Editing by Jan Dahinten)