Energy sector attractive to foreign investors

Among them, a typical example is Samsung Group from the Republic of Korea which has invested nearly US$6 billion in mobile phone production in Bac Ninh and Thai Nguyen provinces. In early March 2014, in a talk with Vietnam Economic News’ reporter, Deputy Director of Samsung Vina Electronics Nguyen Van Dao said at present Samsung is working with the Vietnamese government to expand investment to other areas like thermal-power and oil refinery in Vietnam.

Most recently, in late May 2014, at a meeting with Deputy Minister Hoang Trung Hai, Shin Kim, General Director of Samsung’s Global Strategy Office expressed his expectation to undertake investment in a series of major projects in Vietnam, including those in the energy sector like the Vung Ang 3 Thermal-power project in Vung Ang Economic Zone in Ha Tinh Province or Long Son oil refinery project (Vung Tau Province). It is said that these projects are worth billions of dollars and are being pursued by Samsung.

Another big project under prompt preparations for investment in Vietnam’s energy sector is Thailand’s oil and gas group PTT’s Nhon Hoi oil refinery project. This project is expected to be built in the Nhon Hoi Economic Zone in the central coastal province of Binh Dinh on total area of over 2,000 ha with the capacity of producing 660,000 barrels per day, equivalent to 30 million tonnes of crude oil per year. According to plan, the refinery is estimated to cost US$27 billion.

Talking with Vietnam Economic News’ reporter, Head of Management Board of Binh Dinh’s Economic Zone Man Ngoc Ly said PTT is a global oil refinery group which ranked 81st among top 500 companies in the world by revenues in 2013, according to Fortune magazine.

To show its commitment to this project, PTT at the same time chose four experienced and prestigious consultants to set up the project. Since August 2013, PTT has continually organized delegations to assess the environmental impact, conducted geographical and marine surveys in a bid to complete a feasible draft project for submission to the government. If nothing changes, by the third quarter of 2015 the giant oil refinery and petrochemical project will be built and it will produce the first products by 2018.

According to Vice Chairman of the Vietnam Association of Foreign-invested Enterprises Nguyen Van Toan, apart from Samsung and PTT, US energy group ExxonMobil is also planning to invest in a gas and power complex in Quang Ngai Province with total registered capital of US$20 billion. Nguyen Van Toan also said that Quang Ngai’s local authorities are also excited as they prepare for negotiations with investors.

In 2013, the Nghi Son refinery-petrochemical project in Nghi Son Economic Zone in central Thanh Hoa province - a joint venture between Vietnam Oil and Gas Corporation, Kuwait Petroleum International, Japan’s Idemitsu Kosan Co Ltd and Mitsui Chemicals Inc. also increased its capital by US$2.8 billion to raise the total capital to US$9 billion. That once again proved the attractiveness of Vietnam’s energy sector to foreign investors.

Source: VEN