Prime Minister Nguyễn Xuân Phúc has halted construction of the US$10.6-billion Hoa Sen Cà Ná steel plant in south-central Ninh Thuận Province, while requiring more studies to be completed on the consumer demand and the environmental impact of the plant.

The central city of Da Nang is worried that its main source of fresh water will be polluted if a steel factory in Quảng Nam Province is relocated to the banks of the Vu Gia-Thu Bồn River.

The Ministry of Industry and Trade (MoIT) will directly assess and supervise the development of the US$10.6 billion Hoa Sen Cà Ná steel making complex in the south-central province of Ninh Thuận, an official said.

Hoa Sen Group will build a steel plant with a capacity of 16 million tonnes a year in the south-central province of Ninh Thuận at a cost of US$10.6 billion.