Bloomberg reported that Taiwan’s biggest diversified industrial company Formosa Plastics Group would begin construction of a steel plant in Vietnam next month.

The report quoted Mr William Wong CEO of Formosa as saying that it is also studying building an oil refinery and ethylene plant in the country. But he didn't give details about the new projects being considered.

The Economic Daily News reported June 11th 2008 that Vietnam is trying contain an inflation rate that's the fastest since at least 1992. Pacific Hospital Supply Co and Taiwan Sugar Corp have postponed plans to invest in Vietnam.

Mr Wong said that “We will be careful, while investment in Vietnam will continue.” He added that “We remain confident.''

Mr Wong said that they are seeking to build factories overseas as there isn't much land for new plants in western Taiwan's Mailiao, the group's biggest production site.