"We expect the deal to be signed this month with our Vietnamese partners," a senior executive said.

Taiwan Sugar executives would give only scant details.

Construction of the $44 million sugarcane crushing plant, designed with capacity to produce 63,000 tonnes of refined sugar a year, would start in 2000 at an unspecified location with completion expected in 2003, they said.

Taiwan Sugar would hold 40 percent of the plant, while Taiwan's King Car Food Industrial Co and Taiwan Cement Engineer Co each would hold 15 per cent, they said.

Executives declined to name the Vietnamese partners, but said three Vietnamese firms would each hold a 10 per cent stake in the project.

The deal would be Taiwan Sugar's second sugar refinery in Vietnam. Taiwan Sugar holds a 40 per cent stake in a $60 million crushing plant that opened inMay 1997 and can produce 120,000 tonnes of refined sugar a year.

Taiwan Sugar also has invested T$300 million ($9.3 million) to establish a hog breeding farm in Vietnam.