Several international corporations on Monday signed strategic cooperation agreements to develop two energy projects totaling USD 6bn 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 USD 5bn. The other is a factory manufacturing components for internal combustion engines and using hydrogen technology to be emission-free, with an investment of USD 1bn for phase 1.
The duo, located in HCMC, is considered a key project in the region’s energy strategy.
The companies also signed 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 USD 500-700M.
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.