Vietnam set to become Southeast Asia petrochemicals giant

By Truong Van
Wed, June 28, 2023 | 7:00 am GMT+7

Vietnam is poised to become a regional leader in oil and petrochemical products with new production facilities in the pipeline and the industry attracting billions more in investment.

The $5.4 billion Long Son petrochemicals complex in the southern province of Ba Ria-Vung Tau will start commercial productions this September, CEO Roongrote Rangsiyopash of Thai investor Siam Cement Group (SCG) said in a Reuters report Monday.

Long Son petrochemicals complex in Ba Ria-Vung Tau, southern Vietnam. Photo courtesy of Vietnam's government portal.

Long Son petrochemicals complex in Ba Ria-Vung Tau, southern Vietnam. Photo courtesy of Vietnam's government portal.

Construction of the complex began in the fourth quarter of 2018.

The complex, about two hours’ drive from Ho Chi Minh City, is in the process of testing its operating units. Testing would be completed next month or in August so that commercial operations can start in September or so, he said.

With a total area of about 460 hectares, the complex will produce polyethylene, polypropylene and basic chemicals.

In a meeting with Vietnamese Prime Minister Pham Minh Chinh this February, Rangsiyopash said his group was preparing to implement two projects – upgrading production capacities in the complex and developing the second phase.

He said phase two would use advanced environment-friendly technology and concentrate on the production of high value-added products like an innovative eco-friendly polymer as part of efforts to promote sustainable development.

The second phase will be developed in the same area, benefiting from the existing infrastructure to expand the plants, he said. “Official application submissions will be made on a suitable upcoming occasion.”

Executives of leading Vietnamese gas supplier PV Gas met with SCG counterparts in HCMC early this June to discuss business deals under which the former will supply ethane, propane, and condensate/naphtha to the complex.

The complex needs some 1.6 million tons of gas materials a year, the giant gas supplier said, adding that it was seeking approval from provincial authorities for a project to extract ethane from natural gas for the complex.

Both sides also discussed propane and condensate consumption for the complex, sourced from domestic supplies and PV Gas imports.

Two operational refineries

Vietnam has two operational oil refineries now: the Nghi Son Refinery and Petrochemical complex in Thanh Hoa province; and the Binh Son Refining and Petrochemical complex in Quang Ngai province, both in the central region.

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

The Nghi Son Refinery and Petrochemical complex in Thanh Hoa province, central Vietnam. Photo courtesy of the project.

The Nghi Son Refinery and Petrochemical complex in Thanh Hoa province, central Vietnam. Photo courtesy of the project.

The other complex, better known as Dung Quat Refinery, is a Petrovietnam subsidiary that has received investments of more than $3 billion. It is the country’s first oil refinery.

The Vietnamese government decided in May to expand Dung Quat’s capacity to 171,000 barrels a day by 2028 from the current 148,000 barrels, with an investment of more than $1.2 billion.

Of the new investment, existing equity will account for $503 million, while the rest will be sourced from external loans. The total is lower than an estimate made in 2014 for Dung Quat’s expansion, which was over $1.8 billion.

The newly-approved project will include: five auxiliary and peripheral workshops with newly patented technologies; a workshop for treating gasoline with hydrogen; another for treating diesel with hydrogen; an alkylation workshop; a hydrogen production workshop; and a sulfur recovery workshop.

The expansion will also include a water treatment facility and an amine regeneration unit. In addition, the project will upgrade technologies.

$1.5 billion plant under construction

In addition to the three oil refineries, Hanoi-based multinational group Stavian is investing $1.5 billion in a polypropylene production facility in the northern province of Quang Ninh.

The 600,000 ton-per-year Stavian Quang Yen petrochemical plant is expected to go on stream by 2026. A propane dehydrogenation unit is also planned as part of the project.

Last November, Stavian announced that it would obtain technology licenses from Honeywell UOP of the U.S. and Italy’s Basell Poliolefine Italia for its PP production.

Honeywell UOP and Basell Poliolefine Italia are among the world's leading suppliers of advanced technologies, Stavian said, adding that the plant would be equipped with a high-tech, automated and eco-friendly production line imported from Europe.

Stavian is already a leading plastics distributor in Vietnam and operates distribution offices in the U.S., South Korea, Singapore, Indonesia, the Philippines, Russia, China, and India, according to its website.

National reserve project

State-run Petrovietnam proposed last August that the government invests in an integrated petrochemical and refinery complex with oil storage facilities in the Long Son oil and gas industrial park, home to SCG’s Long Son petrochemicals complex.

Under the proposal, the $19 billion national project would comprise two parts - a petrochemical and refinery facility and a project to build a national storage facility for crude oil and petrol products.

Vietnam’s Ministry of Industry and Trade has backed the proposal, saying it would ensure the country’s oil and gas security.

The two operational refineries can provide about 14 million tons of petroleum products annually, meeting about 70% of Vietnam’s present demand, according to the ministry. Meanwhile, the current domestic supply of polypropylene and polyethylene plastics totals 2.55 million tons, about half the nation’s demand.

Comments (0)
  • Read More
Provincial police chief appointed chairman of Vietnam's telecom giant MobiFone

Provincial police chief appointed chairman of Vietnam's telecom giant MobiFone

The Ministry of Public Security has appointed Major General Truong Son Lam, director of Ben Tre province's Police Department, as chairman of MobiFone's board of members.

Economy - Tue, June 17, 2025 | 10:14 pm GMT+7

Trump family to receive $5 mln in license fees for mega golf course development in Vietnam

Trump family to receive $5 mln in license fees for mega golf course development in Vietnam

The Trump family business is set to receive $5 million in license fees for a mega golf course complex in the northern Vietnam province of Hung Yen, according to a financial disclosure report released by the U.S. Office of Government Ethics.

Real Estate - Tue, June 17, 2025 | 9:26 pm GMT+7

Vietnam continues to drill oil discoveries, helping to ensure national energy security: broker

Vietnam continues to drill oil discoveries, helping to ensure national energy security: broker

Vietnam has been consistently discovering oil in wells across both producing and developing fields, which, according to leading broker Vietcombank Securities (VCBS), will help ensure national energy security amid a rapid decline in domestic gas supplies.

Economy - Tue, June 17, 2025 | 5:08 pm GMT+7

Chinese companies seek to further partner with Vietnam Electricity

Chinese companies seek to further partner with Vietnam Electricity

Several Chinese companies met with state utility Vietnam Electricity (EVN) between May 27 and June 12, seeking more cooperation opportunities.

Companies - Tue, June 17, 2025 | 3:50 pm GMT+7

Unilever to expand investment capital at southern Vietnam plant to $105 mln

Unilever to expand investment capital at southern Vietnam plant to $105 mln

Unilever Vietnam plans to raise the investment capital of its factory in Ho Chi Minh City, a southern metropolis, to VND2.7 trillion ($104.5 million), according to a recent environmental impact assessment report.

Industries - Tue, June 17, 2025 | 2:45 pm GMT+7

VAT in Vietnam cut to 8% for July 2025-Dec 2026 period

VAT in Vietnam cut to 8% for July 2025-Dec 2026 period

The National Assembly, Vietnam's legislature, has reduced the VAT rate from 10% to 8% for goods and services from July 1, 2025 to December 31, 2026.

Economy - Tue, June 17, 2025 | 2:13 pm GMT+7

Subsidiaries, affiliates ineligible for preferential corporate income tax in Vietnam

Subsidiaries, affiliates ineligible for preferential corporate income tax in Vietnam

Subsidiaries and affiliates of enterprises in Vietnam will not be eligible for preferential corporate income tax (CIT) rates of 15-17%, starting from October 1, a move aimed to prevent abuse of incentives.

Economy - Tue, June 17, 2025 | 1:26 pm GMT+7

Vietnam Airlines to launch direct routes to Northern Europe, Italy

Vietnam Airlines to launch direct routes to Northern Europe, Italy

Vietnam Airlines will open a direct route from Vietnam to Italy on July 1, and another to Northern Europe on December 15, expanding its network to European countries, the national flag carrier stated on Monday.

Companies - Tue, June 17, 2025 | 12:05 pm GMT+7

Vietnam tightens rules on private placement bond issuance

Vietnam tightens rules on private placement bond issuance

Vietnamese businesses will only be permitted to issue private placement bonds if their total liabilities do not exceed five times their equity, according to a newly adopted law.

Finance - Tue, June 17, 2025 | 11:44 am GMT+7

Vietnamese property major Hoang Huy’s subsidiary eyes HCMC bourse listing in H2

Vietnamese property major Hoang Huy’s subsidiary eyes HCMC bourse listing in H2

CRV Real Estate Group JSC, a member of Vietnam's major property developer Hoang Huy Group (TCH), seeks to list its shares on the Ho Chi Minh City Stock Exchange (HoSE) in the second half of this year.

Real Estate - Tue, June 17, 2025 | 8:52 am GMT+7

Southern Vietnam province Kien Giang seeks private investment for 40 key projects

Southern Vietnam province Kien Giang seeks private investment for 40 key projects

The Mekong Deleta province of Kien Giang has announced a list of 40 projects calling for private investment in 2025, with total capital of over VND226.7 trillion ($8.7 billion).

Industries - Mon, June 16, 2025 | 11:45 pm GMT+7

ASEAN poised for greater role in global economy

ASEAN poised for greater role in global economy

ASEAN could emerge as the world's fourth-largest economy in the coming decades but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential, experts have said.

Southeast Asia - Mon, June 16, 2025 | 11:34 pm GMT+7

Indonesia prioritizes private investment in infrastructure projects

Indonesia prioritizes private investment in infrastructure projects

Indonesian President Prabowo Subianto has emphasised that Indonesia will facilitate greater participation of both domestic and international private companies in infrastructure development, aiming to ensure equitable growth opportunities and advance the country’s “Golden Indonesia 2045” vision.

Southeast Asia - Mon, June 16, 2025 | 11:30 pm GMT+7

Honda Vietnam reports strong growth in motorcycle and car sales

Honda Vietnam reports strong growth in motorcycle and car sales

Honda Vietnam (HVN) recorded significant sales growth in both motorcycle and automobile segments in May 2025, with year-on-year increases of 8.2% and 25.9%, respectively.

Companies - Mon, June 16, 2025 | 11:24 pm GMT+7

Vietnam’s rice export prices fall nearly 19% despite growing volume

Vietnam’s rice export prices fall nearly 19% despite growing volume

Vietnam’s rice industry is facing a steep drop in export prices, even as shipment volumes climb, underscoring the challenges of a volatile global grain market.

Companies - Mon, June 16, 2025 | 11:20 pm GMT+7

Vietnam Airlines invests $69 mln in 2 projects at Long Thanh airport

Vietnam Airlines invests $69 mln in 2 projects at Long Thanh airport

National flag carrier Vietnam Airlines on Sunday kicked off construction on an in-flight catering facility and an aircraft maintenance complex at the under-construction Long Thanh International Airport in southern Vietnam, with a total investment of nearly VND1.8 trillion ($69 million).

Infrastructure - Mon, June 16, 2025 | 9:41 pm GMT+7