return icon Vietnamnet.vn

Why Thai investors decide to pour billions of dollars into Vietnam?

Just within a short time, the two big Thai energy conglomerates announced the huge investments in the $27 billion Nhon Hoi petrochemical project and the $2.2 billion Quang Tri thermopower plant project.

VietNamNet Bridge – Just within a short time, the two big Thai energy conglomerates announced the huge investments in the $27 billion Nhon Hoi petrochemical project and the $2.2 billion Quang Tri thermopower plant project.



{keywords}

PTT’s executives and Binh Dinh’s officials visit the area where the Nhon Hoi oil refinery would be built.



The huge projects

PTT, the Thai oil and gas group, plans to contribute 30-40 percent of capital into the Nhon Hoi petrochemical complex capitalized at $27 billion in the Nhon Hoi Economic Zone in the central province of Binh Dinh. The other investors would be from the Middle East, South Korea and Japan.

The project is expected to kick off in 2016, while the construction would last four years. Once becoming operational, the oil refinery would have the capacity of 660,000 barrels of crude oil per day, or 30 million tons per annum.

Most recently, the Quang Tri provincial authorities have announced the investment project on developing a 1,200 MW thermopower plant in the locality under the mode of BOT (build, operation, transfer). The investor of the project is EGATI, also a Thai conglomerate.

The total land area reserved for the thermopower plant is 450 hectares. With the capacity of 1,200 MW, the plant is expected to provide the electricity merchandise output of 7.25 billion kwh a year. The BOT project has the duration of 25 years, after which it would be transferred to the government of Vietnam.

Who are PTT and EGATI?

PTT is the Thai oil and gas group operating as a joint stock company with the chartered capital of baht28.6 billion, or $894.7 million, of which the Thai Ministry of Finance holds 51 percent.

By June 30, 2013, PTT’s total assets had reached baht1,653.5 billion, or $51.8 billion. Its profits mostly come from the oil and gas exploitation, processing and trade.

PTT holds 65.29 percent of the chartered capital of PTTEP, a Thai oil and gas exploration and exploitation.

EGATI is a power company belonging to EGAT, the Thai electricity agency. EGAT is also a client of PTT.

EGATI has announced its investment strategy in Vietnam under which it would set up 3 thermopower plants in three regions of the country.

Thailand keeps interested in Vietnam’s energy sector

PTT is not an unfamiliar foreign partner to the Vietnamese enterprises in the oil and gas sector. PTTEP, a subsidiary of PTT, is now exploiting oil and gas at the Block 16-1 of the Te Giac Trang area. PTTEP contributes 28.5 percent of capital in the project. Besides, it also contributes 25 percent to the exploitation project at the Block 9-2.

PTT has also been known as holding 45 percent of capital of the Vietnam LPG, a joint venture between PTT and Vietnam’s Southern LPG Company.

Meanwhile, the name “EGATI” was once heard two years ago, when it had a working session with the Binh Dinh provincial authorities on a thermopower plant project in the locality.

Analysts have noted that Thai energy conglomerates prove to be very eager to develop power projects in Vietnam. The existing profitable investment activities in Vietnam, plus the forecast that the power prices would increase in the future are believed to be the two main reasons prompting them to pour billions of dollars into Vietnam.

At the 2013 shareholders’ meeting, PTT’s management board said that once the AEC, the ASEAN economic community, is established--slated for 2015, the power prices in the member countries would not get the subsidy from the governments any more.

DNSG

MORE NEWS

Sli singing - the soul of Nung ethnic minority people

Sli is a unique folk singing style of the Nung ethnic minority people in Vietnam’s northern region, which is performed as a call and response between young men and women.

Vietnam spends US$9 billion importing oil, petrol products in 2022

South Korea was the largest petroleum supplier of Vietnam, with 3.22 million tons, up 96% year on year.

Vietnam named among top food destinations by Gordon Ramsay

Vietnam's rich cuisine has made it a favorite culinary destination not only for Michelin-starred chef Gordon Ramsay but also for food lovers worldwide.

Hang Sao- a unique cave pagoda in Yen Bai

Hang Sao is one of the beautiful and sacred pagodas in Yen Bai, believed to be discovered in the reign of the sixth Hung King.

Vietnam has great opportunity to be a global production base

Vietnam is becoming a destination for global manufacturers, an opportunity that needs to be taken full advantage of.

Lai Chau ginseng: a hidden national treasure

Ethnic people in Lai Chau province have long used locally-grown ginseng to improve their health.

Late artist Nguyen Tu Nghiem’s works on display in rare exhibition

This rare opportunity for art lovers to see the artist’s works is being held to honour his career, which spanned over 70 years in the 20th and 21st centuries.

Authorities to boost implementation of OV-related tasks: official

Efforts will be accelerated in 2023 to implement tasks relevant to overseas Vietnamese (OV) affairs, said Deputy Foreign Minister and Chairman of the State Committee for OV Affairs Pham Quang Hieu.

Censorship council under pressure when approving films related to private life

Director of the Cinema Department Vi Kien Thanh said the censorship council bears increasing responsibility, especially when censoring films related to private lives.

Young VN talent awarded 2023 Clay Research Fellowships

Pham Tuan Huy, 27, has become only the second Vietnamese talent to receive an award from the Clay Mathematics Institute (CMI) which gives out various prizes and sponsorships to promising mathematicians from around the world.

AFC praises Park Hang-seo’s “lasting legacy” in Vietnamese football

The Asian Football Confederation (AFC) has published an article titled “Park Hang-seo: A lasting legacy”, to honour the Korean coach after his magical five year journey with the Vietnamese men’s football team.

Discovering pig slaughtering festival in Vietnam

A traditional pig slaughtering festival got underway in Nem Thuong village of Bac Ninh city, northern Vietnam, on January 27 as part of activities to celebrate the new-year period.

Prague Airport wants to open direct air routes to Vietnam

Prague Airport in the Czech Republic is planning to launch new direct air routes to North America and Asia, including Chicago (US) and Vietnam.

Mural village woos more visitors to Quang Binh

The coastal village of Canh Duong in Quang Trach district, central Quang Binh province, is known for its breathtaking natural scenery. But now, the 400-year-old village attracts visitors with its beautiful and unique murals.

Intertwined opportunities, challenges for Vietnam’s economy in 2023

With certain headwinds predicted for the global economy in 2023, Vietnam too, faces considerable challenges. But opportunities are also significant if concerted and appropriate solutions are taken, an expert has said.
back_to_top