Phu Yen to withdraw US$3.2-billion petroleum refinery project
The US$3.2-billion Vung Ro Petroleum & Oil Refinery project has been withdrawn due to delays, announced the Phu Yen People`s Committee.
The decision was made as the investor did not implement the project according to plan, stated the announcement.
Illustration photo.
|
It includes the construction of Bai Goc Port to serve the project as well as handle general cargo and containers, according to the project's scope of work. The area of the project is 538 hectares, 404ha of which is reserved for the plant and 134ha for the port. It is also going to use 500-1,300ha of water surface.
With a total investment of US$3.2 billion, Vung Ro Petroleum & Oil Refinery was designed to have a capacity of 8 million tons of crude oil per year.
Under the original plan, the first phase of the construction process would be completed and start operation in 2016. However, 10 years after being approved, the construction has not been started.
One of the reasons leading to the delay is the difficult site clearance process, combined with the oil and the Russian economic crisis in 2015-2016, leading to the weakening of the Russian ruble, which increased implementation costs.
The project would have played an important role in facilitating the Vietnamese refinery and petrochemical industry, with a purpose to serve domestic demand and export alike, stated the project's official website.
Meanwhile, 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 refinery has supplied over 50 million tons of petroleum products to the market after 9 years of operation, reaching an accumulated revenue of VND862.5 trillion (US$38 billion).
Vietnam's second oil refinery, Nghi Son Refinery and Petrochemical, is expected to begin producing commercial products next month.
12:17, 2025/02/25
Vietnam eyes top 3 in investment environment in ASEAN next 2 years: Party Chief
A key objective is to trim off at least 30% of administrative procedures and cut both business costs and unofficial fees.
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.
- Foreign companies confirm investment expansion in Vietnam in 2025
- PM invites Skoda to manufacture electric vehicles in Vietnam
- US Berggruen Holdings to help Vietnam set up investment funds
- Vietnam releases Esports White Book 2022-2023
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses