Vietnam rejects steel mill to protect environment
Updated
A proposal by South Korea's Posco Group to build a steel mill near a Vietnamese coastal resort has been rejected.
Prime Minister Nguyen Tan Dung says the mill proposed for south-central Nha Trang's, Van Phong Bay would have breached environmental protection rules.
There was also protests by residents and tourism operators saying it would spoil the environment in the seaside resort, where a number of new luxury hotels are being built.
Local media reports, say another reason the government scrapped the project is because it would have clashed with the planned development of a major container port in Van Phong Bay.
Mr Dung announced the cancellation in a televised address to the national assembly.
He added that the government is determined to prevent further pollution in the country of 86 million people, where rapid industrialisation since the 1990s has caused widespread river and air contamination.
