Nghi Son oil refinery needs to cut losses quickly: Vietnam PM

Japan’s Idemitsu Group and its partners need to improve governance, develop efficient operational processes, and apply modern technology to reduce input costs, cutting losses at the Nghi Son oil refinery as soon as possible, said Prime Minister Pham Minh Chinh.

At a meeting with Idemitsu representatives in Tokyo on Saturday, Chinh said he appreciated the group's efficient investment activities in Vietnam, especially its participation in key, large-scale projects like the Nghi Son oil refinery, located in Thanh Hoa province's Nghi Son Economic Zone.

Operated by Nghi Son Refinery and Petrochemical LLC (NSRP), the refinery in central Vietnam now meets about 40% of the country's gasoline needs and is a symbol of international cooperation between Vietnam and Japanese-Kuwait partners, the PM stated.

In November, the government leader paid a working trip to the oil refinery, asking NSRP to push ahead with personnel, governance and financial restructuring.

"There need to be more Vietnamese people in the company's leadership. More decentralization of power will help sort out arising problems promptly," the PM noted then.

Idemitsu is a leading Japanese energy corporation, owning and operating seven petrochemical refineries and 6,100 petroleum service stations in Japan, along with 61 representative offices and companies abroad. In 2022, it posted revenue of more than $51.4 billion and total assets of over $34 billion.

In Vietnam, this group has engaged in developing the Nghi Son oil refinery with total disbursed capital reaching $8.78 billion.

On the same day, at a meeting with Hidenori Harada, president and CEO of Mitsui Oil Exploration Co., Ltd. (MOECO) - a partner of Vietnamese state-run Petrovietnam at Block B - O Mon gas project in southwest Vietnam, PM Chinh said appreciated the efforts of MOECO and other partners in implementing this key project, which is of important significance to Vietnam.

The Vietnamese leader said he will direct the Ministry of Industry and Trade to immediately amend relevant regulations to facilitate the project implementation.

He asked MOECO to continue coordinating closely with Petrovietnam and relevant Vietnamese ministries and agencies to soon complete procedures for the project deployment, ensuring progress, quality and efficiency for the ultimate goal of having the first gas flow no later than 2026.

“In the coming time, the company should expand investment and business activities in Vietnam, especially in areas of strength such as equipment manufacturing, with a focus on technology transfer to Vietnamese partners and helping them engage more deeply in regional and global supply chains,” he said.

Also on Saturday, meeting with Takagi Kuninori, chairman of International Health and Welfare (IHW), PM Chinh affirmed that cooperation in healthcare and medical human resources training are priorities in concretizing the newly established Vietnam-Japan comprehensive strategic partnership for peace and prosperity in Asia and the world.

The PM welcomed IHW’s plan to build a high-quality, Japanese-standard medical examination and treatment facility in Vietnam, saying the country supports the plan and is willing to create conditions for the project to be implemented smoothly.

He asked the Japanese group to continue promoting cooperation in training high-quality medical human resources for Vietnam and increasing scholarships for Vietnamese students at the International University of Health and Welfare.

IHW and its partners could take part in and deploy high-tech medical research and development activities at Vietnam's National Innovation Center, he suggested.

PM Chinh is on a four-day (December 15-18) visit to Japan to attend the Commemorative Summit for the 50th Year of ASEAN-Japan Friendship and Cooperation as well as bilateral activities at the invitation of Japanese Prime Minister Kishida Fumio.