It is reported that Vietnam has rejected a proposal by South Korean POSCO Group to build a steel mill near a Vietnamese coastal resort.

Mr Nguyen Tan Dung prime minister of Vietnam said that the mill proposed for south-central Nha Trang's, Van Phong Bay would have breached environmental protection rules.

Mr Dung announced the cancellation in a televised address to the national assembly.

POSCO had applied to build the mill in Van Phong Bay, near Khanh Hoa's beach resort city of Nha Trang, raising the public's concerns in one of Vietnam's most beautiful bays.