Zhejiang Yongjin Stainless Steel Group Co., Ltd. previously announced to invest a stainless steel plant in Dong Nai Province, Southern Vietnam. However, the Vietnam Steel Association (VSA) proposed to the government and the relevant units that the government could reject the investment.

The VSA stated that the investment in hot-rolled coil, cold-rolled steel, construction steel, cold-rolled stainless steel, coated steel pipe and galvanized products was not necessary due to the oversupply in Vietnam.

Therefore, the VSA suggested that the government could encourage steel mills to invest in high-quality alloy steel for machinery, shipbuilding and automotive industries which could not be manufactured in Vietnam.