CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Long Son Petrochemicals complex begins construction
Ngoc Thuy 00:06, 2018/02/25
The construction of the Long Son Petrochemicals (LSP) complex has been started on February 24 and the complex is scheduled to start commercial operation in the first half of 2022.
The LSP complex is invested by a joint venture between Thailand's Siam Cement Group (SCG) and PetroVietnam (PVN) with the total capital of US$5.4 billion on an area of 464 hectares. 
 
Illustration photo.
Illustration photo.
Located in southern Ba Ria-Vung Tau province in Vietnam and being the first of its kind in Vietnam, the complex targets to develop a 1-million-ton ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of 1.6 million tons per year.

At present, Dung Quat Refinery, the first-ever oil refinery in Vietnam, processes about 6.5 million tons of crude oil per year, meeting only 30% of the domestic demand for petroleum products, according to the Ministry of Industry and Trade. 

The project's construction, therefore, is in line with the Politburo's development strategy of the Vietnamese petroleum sector by 2025, with vision to 2035, stressed Prime Minister Nguyen Xuan Phuc at the ground-breaking ceremony. 

As such, the project will play an important role in facilitating the Vietnamese refinery and petrochemical industry, with a purpose to serve domestic demand and export alike, Phuc said. 

The Prime Minister requested local authorities to supervise the investor's compliance with regulations on protecting the natural and social environments, maintaining locals' traditional culture, and restoring local natural forests to serve sustainable and long-term development.

The project is expected to create jobs for over 20,000 employees over the construction process, said the Chairman of Ba Ria-Vung Tau Provincial People's Committee, Nguyen Van Trinh, at the event. 

Once operational, it is expected to create jobs for over 1,000 technical workers and contribute about US$60 million per year to the provincial and state budgets, Trinh informed. 

SCG currently holds 71% of LSP's charter capital, while PVN owns the remaining 29%. Previously, SCG revealed its intention to fully acquire the LSP complex, according to a report released on January 19. 

However, SCG's media representative in Vietnam has not verified the potential purchase of PVN's 29% to Hanoitimes. 

The Long Son Petrochemicals complex was licensed in 2008 with an initial investment capital of $3.7 billion by three groups: PVN, Vietnam Chemical Group (Vinachem), and SCG. 

VinaChem, however, withdrew its capital and was replaced by Qatar Petroleum International (QPI) in 2012.

In April 2017, QPI also decided to withdraw from the LSP complex. At the time, through its wholly-owned subsidiary Vina SCG Chemicals (VSCG), SCG acquired a 25% stake from QPI in LSP Limited, the investor of the LSP complex, according to a statement published on SCG's website.
Comments
Other news
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.
10:57, 2025/01/30
Foreign companies confirm investment expansion in Vietnam in 2025
Some foreign firms are optimistic about Vietnam's economic prospects in 2025 and plan to expand investment, focusing on sustainability across sectors.