he planned Vung Ro oil refinery project in central Phu Yen province would increase investment capital from US$1.7 billion to $3.18 billion and its capacity would be doubled to 8 million tonnes a year.— VNS File Photo

PHU YEN (Biz Hub)— The planned Vung Ro oil refinery project in central Phu Yen province would increase investment capital from US$1.7 billion to $3.18 billion and its capacity would be doubled to 8 million tonnes a year.

The investment licence was being adjusted accordingly, the provincial People's Committee said. The oil refinery would be built in Hoa Tam Industrial Zone, in Nam Phu Yen Economic Zone, instead of in an area of more than 175ha in Hoa Tam and Hoa Xuan Nam communes.

According to the project consultants, the old location was not appropriate for expansion and the plant might have a bad impact on the surrounding scenery.

The original project licensed in 2007 had a capacity of 4 million tonnes a year and investment of $1.7 billion.

The proposed adjustments were agreed in Document 52/TB-VPCP issued in February this year.

Minister of Planning and Investment Bui Quang Vinh said incentives should be provided, such as exemptions of land use fees and crude oil import tax, according to the Vietnam Economic Times newspaper.

Previously, chairman of the provincial People's Committee Pham Dinh Cu said construction of the project must start no later than July. Project investors were to have the plant operational in four years.

Vung Ro oil refinery was expected to attract other projects to Hoa Tam Industrial Zone.

The project was expected to contribute around $111 million a year to the State budget and provide jobs for 1,300 labourers. — VNS