The PETROVIETNAM Petrochemical Business

Officially known as Vietnam Oil and Gas Corporation, Petrovietnam has developed rapidly since it was established in 1975, and its activities, through its various companies and wholly owned subsidiaries, now cover all the operations from oil and gas exploration and production to storage, processing, transportation, distribution and services.
 PETROVIETNAM, since its inception, has grown into a fully integrated oil and gas entity engaged in a broad spectrum of petroleum and related value-adding business activities in both upstream and downstream sectors. Today, with over 30 subsidiaries and associated companies, PETROVIETNAM operates not only within the boundaries of Vietnam but also in the global area. It has been listed among the future global 500 companies.

The petrochemical industry is a very new industry in Vietnam. Due to its subjective conditions and economic circumstances, Vietnam is not yet ready to build comprehensive petrochemical complexes. To meet the market demand and with an aspiration to build a modern industry for serving the industrialization and modernization of the country, Petrovietnam advocates the development of the petrochemical industry step by step from processing imported monomer into petrochemical products at the initial stage, then using inputs produced in the country though the formation and development of petrochemical complexes based on domestically produced oil and gas, thus forming a closed cycle from refining to the petrochemical industry.

Based on the market demand, the balance of material resources, and the regional development situation, petrochemical projects in Vietnam are planned for development in 3 phases, namely:

At the time, Petrovietnam is carrying out the following petrochemical projects:

 PETROVIETNAM' petrochemical products will be marketed via wholly-owned subsidiaries/or it's joint-ventures: PETECHIM(Petrovietnam Trading Company), PVPDC(Petrovietnam Oil Processing and Distribution Company), and MEKONG PETROLEUM JV, PMPC(Phy My Plastics And Chemical Company Ltd).

2002/5/8 Chemical Week

Mitsubishi Corp., JGC Complete Vietnam Petchems Study

 Mitsubishi Corp. and JGC say they have completed a feasibility study for a $2-billion refinery and petrochemical complex at Nghi Son, Vietnam, which would be completed in 2008. PetroVietNam (Ho Chi Minh City) awarded a memorandum of understanding last October to Mitsubishi Corp. and JGC to study the project. The refinery would be Vietnams second, and it would have a capacity of 6.5 million m.t./year. Further details were not disclosed.

 PetroVietnam and Zarubezhneft (Moscow) are building Vietnams first oil refinery at Dung Quat, due onstream at the end of 2004. Vietnam produces more than 16 million m.t./year of oil. Dung Quat is due onstream at the end of 2004.

2003/3/19 Financial Times

Petrochemicals/ feasibility study in Vietnam.

ABB Lummus Global is to conduct a feasibility study into building a major petrochemicals complex in Nghi Son, Vietnam requiring an investment of $2.5 bn. The complex would include a 7 M tonnes/y refinery and aromatics and purified terephthalic acid production units as well as units with capacities of 150,000 tonnes/y polypropylene and 130,000 tonnes/y polyethylene terephthalate. The propylene needed to supply the petrochemicals units will be supplied by the refinery and the ethylene glycol for the polyethylene terephthalate unit will be imported.

2 petrochemicals sites are already under construction in Vietnam.
In Dung Quat VietRoss (the joint venture between PetroVietnam and Zarubezhneft, is building an 80,000 tonnes/y linear alkylbenzene unit which will open in 2003 and a 180,000 tonnes/y polypropylene unit due to open in 2006.
In Phu My, Vietnam Saigon Plastics Association is building a polyolefins complex including units with capacities of: 175,000 tonnes/y polyethylene; 175,000 tonnes/y polypropylene; and 30,000 tonnes/y polystyrene. All are scheduled to open in 2005.


当事者 立地 製品 能力    状況 完成時期


Dung Quat






180,000 t


Vietnam Saigon Plastics

Phu My


175,000 t




175,000 t


30,000 t


Nghi Son


7 M t



purified terephthalic acid


 150,000 t

polyethylene terephthalate

130,000 t

August 29, 2003 Financial Times

Formosa to invest extra 212 mln dlrs in Vietnam

Taiwanese petrochemical giant Formosa Plastics Group said it will invest an additional 212 million dollars in Vietnam to expand its operations in the country.

Chen Kun Tai, deputy general director of Hung Nghiep Formosa, the group's 100 percent Taiwanese-owned operating company in Vietnam, said the Ministry of Planning and Investment had handed over the expansion licence on Tuesday.

The capital will be channelled into constructing new chemical and plastic manufacturing facilities on the Nhon Trach 3 industrial park in Dong Nai province, near the southern business capital of Ho Chi Minh City.

Once realised, this new investment hike will take Formosa's total pledged investment in Vietnam to 482.3 million dollars, he said on Thursday.

Formosa decided last year to expand its operations in Vietnam in accord with Taipei's push to encourage investment in Southeast Asian countries and stay away from mainland China.

The company was awarded its first investment licence in Vietnam, worth 245 million dollars, in December 2001 to develop the Nhon Trach 3 industrial park.

The project development aimed to build textile, polyester, spinning, yarn and fibre facilities, as well as a water plant and a power plant.

In February 2002, the group was given permission to increase its total investment to 270.3 million dollars.

Taiwan is the second largest investor in the communist nation after Singapore, with pledged capital of around 5.49 billion dollars.

中国・ASEANニュース速報 2004/3/15







日本経済新聞 2005/6/7

越で化学品原料タンクを増設 双日、容積倍に


2007/4/4 Platts

Singapore's SP Chemical inks MOUs on Vietnamese petchem complex

Singapore's SP Chemicals signed last Friday several memorandums of understanding with governmental agencies of Vietnam's Phu Yun province regarding the possibility of investing in the construction of a petrochemical complex there, the company said in a statement released Wednesday.
According to the statement, the MOUs outline the possibility of utilizing about 1,300 hectares in Hao Tam-Vung Ro to establish a petrochemical park and complex--for an estimated project investment cost of $1.2 billion.
While the MOUs were not legally binding and do not contain any financial obligations or specific timelines, they will allow SP Chemicals to undertake a feasibility study to assess the suitability of the location as well as to engage the relevant Vietnamese officials in discussions regarding the project.
No details regarding the petrochemical products being considered for production nor plant capacities were included in the statement and all further details of the project would be subject to the outcome of the feasibility study--and would require approval from both the SP Chemical Board of directors as well as relevant Vietnamese authorities.

SP Chemicals, a Singapore-based company listed on the Main Board of SGX-ST on 6 August 2003, is the second largest ion-membrane Chlor-alkali producer in Jiangsu Province, and the fifth largest in the PRC as at 31 May 2005. Backed by a 11-year track record in the PRC, SP Chemicals manufactures and sells Chlor-alkali products and related downstream products to PRC-based and export customers.

SP Chemicals Limited Formerly known as Singpu Chemicals Limited. The Group's principal activities are manufacturing and selling chemical products. The Group operates mainly in the People's Republic of China.


Platts 2007/8/10        Singapore's SP Chemical inks MOUs on Vietnamese petchem complex

China-based SP Chemicals to study naphtha cracker in Vietnam

China-based petrochemicals minnow SP Chemicals has received in-principle approval from the Vietnamese prime minister's office to set up a petrochemical project in Vietnam centered on a
naphtha cracker with 800,000 mt/year ethylene production capacity, the company said Friday.

The petrochemical project envisages development of an integrated industrial park over 1,300 hectares to be dedicated to the petrochemical industry at Hoa Tam in Phu Yen province, the Singapore-listed company said.

With the in-principle approval, SP will now begin a "rigorous feasibility study to assess the suitability of the location and the viability of investing in the construction of a petrochemical complex and a naphtha cracking plant in Hoa Tam," the company said.

The investment plan, structure, amount and construction schedule would be entirely subject to the outcome of the feasibility study, and require approval from the company's board and the relevant authorities in Vietnam, it added.

The project plan will be implemented in two stages. Phase 1 will involve development of basic infrastructure and the construction of a naphtha cracker and utility plants, with an estimated investment of $1.5 billion, targeted for completion in 2014, SP said in a statement. The cost has been raised from an initial estimate of $1.2 billion announced on April 3 due to the construction of a jetty and port, the company noted.

Phase 2 will be aimed at promoting the petrochemicals park and inviting investment in upstream and downstream petrochemical projects, targeted for completion in 2024.

In addition to conducting the feasibility study, SP Chemicals said it will also begin identifying potential strategic partners with the relevant experience and abilities to invest in the petrochemicals project.

The proposed project forms part of SP Chemicals' strategy to expand upstream, to ensure a reliable supply of raw materials and to cater for future expansion of its core production of chlor-alkali products and related downstream products in China.

The Vietnam investment will be SP's first overseas manufacturing asset outside China. The company currently has facilities in Tiaxing city of Jiangsu province.

However, SP's CEO Chan Hian Siang underlined the tentative nature of the plan.

"It is important to note that at this point, we are very much in the exploratory stage," Chan said. "A project of this scale is long term and would require more than 15 years to implement. The sheer magnitude of the project and the technicalities involved, necessitate the conducting of rigorous studies and intensive planning, to ensure the viability of the development,
before we move forward."

Vietnam's downstream oil sector is marked by unusually long project delays and fallouts with foreign investors. The country's first refinery project at Dung Quat in the central Quang Ngai province, which took more than a decade of planning and saw several potential foreign partners drop out along the way, finally began construction in November 2005. Originally planned as a joint-venture project with several overseas partners, the 130,000 b/d refinery is now being set up solely by state-owned oil and gas company PetroVietnam.

The Southeast Asian country currently produces about 310,000 b/d crude and exports all of it in the absence of domestic refining facilities, and has to import all its refined products needs.

asahi 2007/8/11








2008/3/27 日本経済新聞夕刊

出光・三井化学 ベトナムに石油基地 6000億円、アジア向け



Jul 19, 2008 Reuters

Vietnam picks Sinopec for $4.5b refinery plan

Top Asian oil refiner Sinopec Corp will team up with Vietnam's Petrolimex in a venture to build a
$4.5 billion petrochemical complex in Vietnam's central region, a Petrolimex executive was quoted on Saturday as saying.

Chairman Vu Ngoc Hai told the Lao Dong (Labour) newspaper Petrolimex had picked Sinopec as its partner in the venture discussed by the two firms to build
the complex, including a refinery, in Khanh Hoa province.

They have agreed to import crude oil from Singapore or the Middle East to feed the refinery, the fifth such major project in Vietnam, with an annual processing capacity of
10 million tonnes of crude, or 200,800 barrels per day.

The newspaper did not give any timeframe for the Khanh Hoa project, located about 400 km (248 miles) south of the 140,000-bpd Dung Quat oil refinery, Vietnam's first such facility, which is scheduled to operate from early next year.

Petrolimex has the largest share of Vietnam's retail market of oil products, all of them imported, as the country, the second-largest gas oil importer in Asia after Indonesia, still lacks refineries.

August 21, 2008

Construction of biggest petrochemical complex to begin in late September

The Prime Minister has given approval to kick start the construction of Southern Petrochemical Complex in southern Ba Ria-Vung Tau province on September 29, The Vietnam Oil and Gas Group (PetroVietnam) announced on August 20.

The project is said to be the biggest independent petrochemical one in the country with total investment of US$3.77 billion and capacity of over 3 million tonnes of products a year. It covers 400 hectares in PetroVietnam Long Son Industrial Park, right next to Long Son Oil Refinery.

Investors of the project include
PetroVietnam, Vietnam Chemical Corporation (Vinachem), Vina Chemical Company of Thailand's Siam Cement Group (Vina SCG Chemicals) and the Thai Plastic and Chemicals Company (TPC).

The complex is scheduled to start operations in late 2012 and will act as the only supplier of HDPE and LDPE in Vietnam. Construction of the first phase is scheduled for late 2013 and an expansion of the complex is planned for 2016.

Once in full operation, the complex will produce
1.45 million tonnes of polyethylene (PE) and polypropylene (PP), meeting 65% of domestic demands for PE and PP by 2017, contributing to stabilising input materials for petrochemical industry, plus 730,000 tonnes of chemical materials for production of polyvinyl clorua (PVC) and 840,000 tonnes of other key chemical materials for the oil refinery and petrochemical industry.

The complex plays an important role in strong and stable development of Vietnam's petrochemical and plastic industries, helping reducing reliance on imports of polyolefin products, save foreign currency, curb inflation and stabilising prices in Vietnam.

Construction of the project is expected to create jobs for some 10,000 workers and in the operational period, about 1,500 workers are needed.

July 21, 2008 

Petrovietnam, Siam Cement in $3.77 bln petrochemical deal

Viet Nam has granted a license to state oil group Petrovietnam and two units of Siam Cement, Thailand's top industrial conglomerate, to build a $3.77 billion petrochemical complex, a newspaper said Monday.

The license was issued to
Long Son Petrochemical Co Ltd formed by Petrovietnam, Viet Nam National Chemical Corp, Siam Cement's Vina SCG Chemicals and its 44.7 percent-owned Thai Plastic and Chemicals TPC.BK, the Planning and Investment Ministry-run Dau Tu (Investment) newspaper said.

The petrochemical complex will be built
in the southern province of Ba Ria-Vung Tau for completion in the second quarter of 2013 at a total cost of $3.77 billion. The project's registered capital is $1.51 billion, the paper said.

Siam Cement subsidiaries would own 71% of the complex, and the two Vietnamese firms would hold the rest, Siam Cement said in a letter to the Thai stock exchange in March.

Construction will be in six phases and the complex will serve as the foundation for the development of Vietnam's petrochemicals and plastics industries, the Dau Tu newspaper said.

Siam Cement has said the plant will be built close to Long Son refinery, Vietnam's third such plant after Dung Quat and Nghi Son, and will supply other domestic industries such as automotive, consumer goods packaging and aluminum.

The Siam Cement group has invested in Viet Nam since 1990 and has petrochemicals, paper, ready-mixed concrete, building materials and distribution businesses there. SCG Paper said last month it was eyeing more acquisitions of paper firms in Vietnam.

Viet Nam has not finalized a deal with Venezuela's PVDSA to build a $7 billion, 240,000 barrel-per-day Long Son refinery. That project has attracted strong interest from foreign firms as it is located close to an area of high consumption in the Mekong Delta and industrial parks around Ho Chi Minh City.

Petrovietnam is speeding up construction of its 140,000-bpd Dung Quat refinery, the country's first, so as to start operation in February 2009 as agreed with the government, after many delays.

The group and Japanese refiner Idemitsu and Kuwait Petroleum International are also building Vietnam's second refinery, the $6 billion 200,000-bpd Nghi Son plant, in the country's north for completion slated for 2013.