The National Oil and Gas Group, PetroVietnam, will develop a steel plant in the southern province of Tien Giang to meet the groups needs as well as demand in the domestic market.
Construction of the steel pipe plant will break ground on Monday, October 25 in the province's Soai Rap District, the group said.
The first plant of its kind in the country would be developed on 40 hectares and cost VND2,175 billion (US$111.5 million) to build.
Equipped with machines and technologies from Switzerland, the plant will have an output of 100,000 tones of steel pipes a year when it starts operations in the third quarter of 2011 and employ 170 local workers.
The products will be used to transport natural gas from the group's offshore oil rigs to onshore power and industrial markets. The group is developing two natural gas pipeline projects in the south.
The plant will be upgraded with other machines and technologies in its second stage to produce steel used for offshore oil rig structures.