Long-running problems with the Malaysian steel industry has forced 100 of some 700 Vietnamese steel workers to head for home with more expected to follow, officials in Hanoi said today.

The 100, who follow the return earlier this month of another 44 steel workers, arrived last week after an industry downturn in Malaysia, an official from the ministry of labour, war invalids and social affairs told AFP .

"About 700 construction workers became unemployed after the Malaysian government decided to cancel most of its small construction projects, in order to concentrate on the big and national-scaled ones.

"We are trying to find them other jobs. If we can't, more workers will have to come home in the

future," she added.

Dispatch suspended

Vietnamese authorities also made a decision last week to suspend the dispatch of workers to Malaysia's construction industry.

More than 72,000 Vietnamese are currently working in Malaysia after the government granted official permission to 46 Vietnamese labour-export companies to send workers in February 2002.

But only 1,040 Vietnamese workers were sent to Malaysia in the first two months of this year, compared with 6,700 of the same period last year.

Sudden deaths, outbreaks of violence and strikes due to job shortage, low salary and problem of moral and professional standards of the Vietnamese employees are the main reasons for the decline, according to the ministry.

Vietnam's authorities actively encourage workers to move to neighbouring countries. In all, the country "exports" its labour to 40 countries. - AFP