Malaysia's Lion Industries has received an investment licence for a joint venture with Vietnam's top shipbuilding group Vinashin to build a $9.8-billion steel mill.

    The project, Vietnam's biggest joint venture in value, came only three months after Vinashin called off its plan to invest $1 billion in a $5-billion steel mill in Van Phong Bay with POSCO to refocus on its core shipbuilding business.

    Officials at the unlisted Vinashin declined on Monday to comment on the group's decision to re-enter the steel sector. They also declined to give the value of Vinashin's stake in the venture with Lion Industries.

    The project, located in the south central province of Ninh Thuan, will have an annual capacity of 14.42 million tonnes of crude steel per year, a statement from the Ninh Thuan's People Committee seen on Monday said.

    The 50-year joint venture will start construction of the facility next year and complete the first phase of the mill in 2011, the statement said.

    Investment in the first phase is estimated at nearly $2.75 billion and the whole project will be completed by 2025, the statement said.

    Vinashin will use steel from the venture for its shipyards around the country, Vinashin Investment Director Le Loc was quoted as saying.

    In addition to the Malaysian venture, Hanoi has licensed foreign steel makers to invest at least $17.3 billion so far this year, including a $7.8-billion project by Taiwan's Formosa Heavy Industries and India's Tata Steel's  $5-billion deal.