The Vietnamese government today promised action on land allotment to Tata Steel’s $5 billion integrated steel project in the country, saying that there was no question of it being given to a Chinese firm.

The issue will be addressed in the coming months by the local Ha Tinh government, which has to ensure the meeting of some local conditions, Vietnamese Ambassador to India, Mr Nguyen Thanh Tan said on the sidelines of an interactive session with the Bharat Chamber of Commerce.

He also said that there was never a question of handing over of any land meant for the Tata Steel to any Chinese or Taiwanese company.

Mr Tan, however, did not provide any time frame within which the land would be handed over.

There were allegations that Tata Steel was facing stiff competition from Taiwanese and Chinese firms for the land allotted for its planned 4.5 million tonnes steel plant at Ha Tinh province.

The firm signed a memorandum of understanding with the Vietnam Steel Corporation in 2007.

Meanwhile, observers say that for Tata Steel the Vietnam project had slipped down the priority list in favour of the expansion of its Jamshedpur factory and Greenfield projects in Orissa and Chhattisgarh.

Tata Steel signed a joint venture agreement with Vietnam’s largest steel company Vietnam Steel Corporation together with Vietnam Cement Industries Corporation (Vicem) for setting up an integrated steel plant.

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