VietNamNet Bridge - On July 1, Chairman of Phu Yen Province signed the adjusted investment certificate for the Vung Ro oil refinery project, which will be kicked off in the third quarter of this year.

Accordingly, the capacity of the project is increased from 4 million tons to 8 million tons per year. The corresponding capital investment nearly doubles, from $1.7 billion to $3.18 billion.

Mr. Ho Van Tien, chief of the office of Phu Yen government, previously said that if the project maintains the initial capacity, it will be unprofitable. Therefore, the investor had proposed increasing the capacity of the refinery and was approved by the Prime Minister.

With the increasing scale, the Vung Ro oil refinery will need up to 538 hectares, instead of 185 hectares as the initial plan. The Phu Yen Provincial People's Committee has also approved to relocate the plant from Thuong Village to the Hoa Tam Petrochemical Industrial Park in Phu Yen Economic Zone.

Once Vung Ro operates, it will supply the market with products refined from crude oil, such as gasoline RON 92, RON 95, diesel, jet fuel ... and petrochemical products. The Prime Minister has approved some incentives for the plant's products, including a zero percent export tax rate for refined and petrochemical products.

According to calculation by the investor, Vung Ro oil refinery will contribute to the budget $111 million per year, creating jobs for 1,300 people and provide a large volume of gasoline for the domestic market.

It is expected that the construction will begin in the third quarter of 2013. The project duration is 50 years from the date of issuance of the 2nd investment certificate.

So far this year, thanks to the increase of investment capital in the Nghi Son Oil Refinery in Thanh Hoa and Vung Ro Oil Refinery in Phu Yen, Vietnam has attracted an additional $ 4.3 billion of foreign direct investment capital.

Tung Nguyen