Dung Quat Refinery seeks incentives for second phase

By Huong Dung, Thai Ha
Tue, August 16, 2022 | 4:28 pm GMT+7

The Binh Son Refining and Petrochemical JSC (BSR), operator of Dung Quat Refinery, has proposed reducing the plant's capacity and investment capital in the second phase, and asked for a slew of incentives.

Dung Quat Refinery in Quang Ngai province, central Vietnam. Photo courtesy of Binh Son Refining and Petrochemical JSC.

Dung Quat Refinery in Quang Ngai province, central Vietnam. Photo courtesy of Binh Son Refining and Petrochemical JSC.

The Government Office has asked ministries and agencies to give comments on state-run Petrovietnam's proposal on upgrading and expanding Dung Quat Refinery's second phase.

Execution of an upgrade and expansion project at Dung Quat approved in 2014 is no longer suitable and feasible, so it needs to be reconsidered. Also, the project needs to satisfy requirements of product quality to match emission standards in line with the country's energy transion, according to Petrovietnam.

Dung Quat Refinery has an initial designed capacity of 192,000 barrels per day, equivalent to 8.5 million tons per year, targeting products that meet EURO V standards and having a total investment of $1.8 billion.

Under Petrovietnam's proposal, the capacity will be cut to 171,000 barrels and the investment drop to nearly $1.26 billion, sourced from equity capital, annual post-tax profits, and loans in the form of export credits from commercial banks.

As the project was scheduled to be completed in the last quarter of 2025 and enter commercial operation in early 2026, BSR, a subsidiary of Petrovietnam, said it could not be carried out as normal, but needs “exceptional” solutions to speed up the progress.

BSC seeks the Prime Minister’s permission to use the report on environmental impact assessment approved by the Ministry of Natural Resources and Environment, appoint a project consultant, and negotiate and sign contracts with technology suppliers.

These are measures that would help fast track the project, the firm argued.

It also proposed tax incentives to raise business efficiency like exemption of corporate income tax in the first four years since the project is completed, halving the tax in the next nine years, and rescheduling gasoline import duty of 0% from 2024 to 2028 to ensure a level playing field with Nghi Son Refinery, the country's second.

The Commission for Management of State Capital at Enterprises said given its ownership of the project, Petrovietnam is responsible for directing the representative of its capital in the project to ensure safety of state equity and expand its value.

The Ministry of Planning and Investment said the power to adjust the investment plan belongs to the Prime Minister. It noted there needs to be assessment of two investment directions, 171,000 barrels a day as proposed by Petrovietnam or 190,000 barrels as intially planned, and clarity regarding the volume and value of work done to date.

"Proposing adjustments to the project also means the company must make a new feasibility study and follow all investment regulations," the ministry added.

The Ministry of Science and Technology has also asked the company to observe domestic gasoline standards, and reminded them of paying attention to the expiration of technology transfer contracts as they last for only seven years, with most signed in 2016.

Vietnam now has two operational oil refineries - Dung Quat Refinery in Quang Ngai province and Nghi Son Refinery and Petrochemical complex in Thanh Hoa province, both in the central region.

Dung Quat Refinery has received more than $3 billion in investments.

Nghi Son is a $9 billion refinery co-owned by Petrovietnam, Kuwait Petroleum Europe B.V. (KPE) and Japan’s Mitsui Chemical and Idemitsu Kosan Co.

Comments (0)
  • Read More
Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.

Energy - Mon, June 2, 2025 | 2:01 pm GMT+7

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

May saw a more stable picture in terms of U.S. tariff policies than April, helping lead to a renewed expansion in output and improved business confidence, says Andrew Harker, economics director at S&P Global Market Intelligence.

Economy - Mon, June 2, 2025 | 9:18 am GMT+7

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

The Ministry of Industry and Trade (MoIT) has proposed building two inter-regional renewable energy service and industry hubs in the country.

Economy - Mon, June 2, 2025 | 8:00 am GMT+7

Investors advised to take profits from stocks having risen sharply

Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

Finance - Sun, June 1, 2025 | 8:10 pm GMT+7

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

Companies - Sun, June 1, 2025 | 1:14 pm GMT+7

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.

Companies - Sun, June 1, 2025 | 10:29 am GMT+7

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.

Industries - Sun, June 1, 2025 | 8:00 am GMT+7

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.

Companies - Sat, May 31, 2025 | 11:09 pm GMT+7

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Billionaire Pham Nhat Vuong has registered to transfer more than 48 million Vingroup (VIC) shares to the newly-established VinSpeed that registered to build the North-South high-speed railway project.

Companies - Sat, May 31, 2025 | 7:14 pm GMT+7

Two investors propose $65 mln wind power project in central Vietnam

Two investors propose $65 mln wind power project in central Vietnam

A consortium of Quang Tri Renewable Energy Investment JSC and Win Power Holding Pte Ltd, and Nam Binh Wind Power JSC have submitted an application to implement a 48-megawatt wind power plant in the central province of Quang Tri.

Energy - Sat, May 31, 2025 | 3:10 pm GMT+7

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

The central city of Danang is calling for investment in an LNG and LPG terminal project worth over VND5.43 trillion ($208.7 million).

Infrastructure - Sat, May 31, 2025 | 10:52 am GMT+7

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), has dismissed social media allegations of selling diseased pork, calling them fabricated and false.

Companies - Sat, May 31, 2025 | 8:54 am GMT+7

Oman Investment Authority to expand investment fund in Vietnam

Oman Investment Authority to expand investment fund in Vietnam

Prime Minister Pham Minh Chinh has proposed Oman to enlarge the Vietnam-Oman Investment Fund (VOI) to $1 billion to better cater for the Southeast Asian country's investment needs.

Economy - Fri, May 30, 2025 | 11:26 pm GMT+7

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Retail giant Aeon will develop a 2-hectare mall in the Mekong Delta province of Tien Giang, with an estimated investment of VND1.16 trillion ($44.6 million).

Industries - Fri, May 30, 2025 | 4:44 pm GMT+7

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

Vietnamese businesses have experienced exponentially higher cost increases than the global average and are expecting additional short-term costs due to trade uncertainty. But many survey respondents (76%) think trade uncertainty has encouraged their business to evolve and explore new opportunities, write HSBC analysts.

Consulting - Fri, May 30, 2025 | 2:41 pm GMT+7

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

After five months of operating a virtual storefront on Alibaba’s B2B e-commerce platform, Sukavina Co., Ltd., a Binh Duong province-based manufacturer of metal tables, chairs, and beds, secured its first international order, marking a significant milestone in the company’s eight-year journey to global markets.

Companies - Fri, May 30, 2025 | 2:37 pm GMT+7