In the field of industrial drives, the vector control of the induction motor has been widely used to achieve the good control performance. In this paper, to require the information of rotor flux in direct vector control scheme, the flux observer by current model of rotor circuit is used. This flux observer is not only available at low-speed region bt good for the error reduction by feedback properties. Also, employing the flux observer on rotor reference frame, the robustness of decoupling control to the observation of rotor flux can be achieved. Through digital simulation and DSP-based IGBT inverter system, the validity for practical implementation is verified.