On 3/4, the standing government convened a meeting to discuss mechanisms and policies for developing the national oil refinery, petrochemical, and energy center in Dung Quat Economic Zone, Quang Ngai.

During the meeting, Prime Minister Pham Minh Chinh emphasized that the national oil refinery, petrochemical, and energy center is a significant undertaking, necessitating the mobilization of diverse resources: from state and private sectors, central and local authorities, and both domestic and foreign direct and indirect investment.

The Prime Minister directed the Ministry of Industry and Trade to finalize the documentation regarding the mechanisms and policies for developing this energy center. The Quang Ngai Provincial People's Committee is tasked with coordinating with relevant ministries and agencies to complete the necessary paperwork, assess the specific impact of each policy, and engage with investors.

Additionally, he assigned the Deputy Prime Minister in charge of the sector to directly oversee the finalization of related documents, advocating a spirit of "focusing on action, not retreat, with a clear roadmap but concentrating resources for rapid and effective implementation".

Prime Minister Pham Minh Chinh speaking at the meeting on 3/4. *Photo: VGP*

According to the Ministry of Industry and Trade's proposal, the national oil refinery and energy center project has a total investment of USD 16.1-20.5 billion, divided into two phases. Phase one, from 2025-2030, will see an investment of USD 14.1-17.5 billion, with an additional USD 2-3 billion allocated by 2045.

Upon completion, the center is expected to meet at least 30% of the country's fuel demand, ensuring reserves equivalent to 30 days of national production and consumption. Furthermore, the project will create 30,000 jobs, contribute 30% to Quang Ngai province's gross regional domestic product (GRDP), and boost ancillary industries like logistics and supporting industries.

The national oil refinery and energy center is envisioned to develop a complete value chain model, encompassing oil and gas import, storage, and processing, through to the production of energy and related industrial products for both domestic consumption and export. Concurrently, the center will integrate new technologies, including green hydrogen, green ammonia, carbon capture, and other clean energy solutions, to meet the demands of the global energy transition.

The establishment of this center aims to enhance national energy security, achieve self-sufficiency in supply, and reduce reliance on imports. Additionally, the project is expected to create a strong impetus for attracting substantial domestic and foreign investment, foster the development of supporting industries, generate employment, and stimulate economic growth in the Central region.

Discussions and reports at the meeting underscored the urgent need for constructing large-scale, integrated energy industrial centers with international competitiveness. This project aligns with Vietnam's strategic direction to establish new growth poles and national energy hubs, leveraging regional advantages and global development trends.

Previously, the Politburo issued a specific directive for establishing the national oil refinery, petrochemical, and energy center in Dung Quat Economic Zone, deeming it a key task to ensure energy security, develop the marine economy, and promote national industrialization.

The National Energy Development Strategy outlines the objective of developing an integrated oil and gas - energy value chain, encompassing gas, liquefied natural gas (LNG), electricity, oil refining, petrochemicals, and renewable energy. The development of energy centers towards green, clean, integrated, and circular models is an inevitable trend, crucial for Vietnam to achieve net-zero emissions by 2050.

Moreover, Dung Quat Economic Zone possesses a strategic location, deep-water port infrastructure, an existing industrial system, and the operational Dung Quat Oil Refinery. These factors provide favorable conditions for its development into a national oil refinery, petrochemical, and energy center.

Phuong Dung