Japanese, Middle East firms eye $6 bln energy investment in HCMC 

Several international corporations on Monday signed strategic cooperation agreements to develop two energy projects totaling $6 billion in Ho Chi Minh City.

Accordingly, KOGI Group, Mazda Oil Corporation (both from Japan), and several Middle East companies agreed to implement the projects as soon as they receive full regulatory approval from local authorities.

One is a project to build Southeast Asia's largest oil refinery and storage facility worth $5 billion. The other is a factory manufacturing components for internal combustion engines and using hydrogen technology to be emission-free, with an investment of $1 billion for phase 1.

The duo, located in HCMC, are considered key projects in the region's energy strategy.

The companies also signed on commitments to study investing in an oil pipeline stretching from Vung Ang Port in the central province of Ha Tinh to Vientiane, the capital city of Laos. This project will have an estimated investment of $500-700 million.

Nguyen Hong Hue (also known as Peter Hong), chairman of the Association of Overseas Vietnamese Entrepreneurs and chairman of the board of directors at KOGI Group, stated that the agreements mark the result of six-month negotiations with partners from Kuwait, Saudi Arabia, Qatar, Oman, and Japan.

“Prime Minister Pham Minh Chinh’s visit to the Middle East in October 2024 opened up new avenues for cooperation between Vietnam and this region. Over the past several months, KOGI Group has worked tirelessly to bring these deals to fruition,” said Peter Hong.

Tetsunobu Ishihama, general director of Mazda Oil Corporation, highlighted the scale and significance of the energy projects. According to him, the infrastructure is expected to transport 25-30 million tons of gasoline and diesel annually.

Once operational, these projects will serve as a critical driving force of Vietnam’s economic growth, helping the country, already one of the fastest-growing economies in Asia, build a solid energy infrastructure, he added.

Crude oil will be directly imported from the Middle East and refined domestically into essential fuel products like gasoline and other oils, forming a crucial foundation for Vietnam’s economy.