Phu Yen and Binh Dinh province authorities and a State Bank of Viet Nam official meet with executives from Singapore’s Gia Phu International Pte Ltd, Japan’s Kato Corporation and the local ABC International Trade Investment Consultant Ltd on June 20-21 to discuss investment in the provinces. – VNA/VNS Photo
Foreign companies are interested in investing in giant projects like oil refineries and deep-water ports in the central provinces of Phu Yen and Binh Dinh.
On June 20 and 21 the people’s committees of the two provinces and the State Bank of Viet Nam’s Phu Yen branch held a meeting with executives from Singapore’s Gia Phu International Pte Ltd, Japan’s Kato Corporation and the local ABC International Trade Investment Consultant Ltd.
Huynh Tan Viet, Secretary of the province Party Committee and Chairman of the Phu Yen People’s Council, said Gia Phu and ABC did a study of the Vung Ro refinery and petrochemical complex for the last three months.
Technostar Management of the UK and Telloil of Russia began the project in November 2007, but pulled out recently due to financial difficulties, according to the Phu Yen Economic Zone Authority.
Gia Phu is hoping to replace them.
A Gia Phu spokesperson said the company is extremely interested in and has carefully studied the Vung Ro refinery.
Vung Ro’s annual refining capacity is eight million tonnes of crude oil.
Gia Phu plans to plough US$5 billion into the project, including $3.5 billion in the refinery and petrochemical complex, $1 billion in the oil pipeline and $500 million to build the Bai Goc deep-water port.
Around 404ha of land will be earmarked for the refinery and 134ha for Bai Goc Port besides 500-1,300ha of sea.
“Phu Yen Province warmly welcomes investors to the Vung Ro refinery and petrochemical complex as well as other projects in the province,” Viet said.
“However, companies should show the financial wherewithal for investing in Viet Nam and completing the work on schedule.
As proof of its financial capability, Gia Phu transferred $500 million to HDbank in Phu Yen.
William Luong, deputy chairman of Gia Phu, said: “Our company has already mobilised 50 per cent of the total investment of the project, and we are ready to transfer the funds to Viet Nam.
“Besides, we have tied up with HDbank, MBbank and VPbank to raise the rest. If all legal formalities for the investment go smoothly, the project is expected to start this year-end or early next year.”
Construction on the Bai Goc deep-water port is expected to take 19 months. Thus, if work begins later this year, it will be finished in 2020.
Gia Phu, whose chairman is Lee Wa Ngoh, has experience with many oil refinery projects around the world.
The Singapore-based company has invested in a 500,000cu.m petroleum terminal in the Cuu Long (Mekong) Delta province of Tien Giang besides other projects in HCM City, Hue and Nghe An and Hoa Binh provinces.
Gia Phu, Kato and ABC are also interested in developing supporting industries for the Vung Ro facility and residential areas for experts including expats working there.
A Gia Phu spokesperson said: “Gia Phu International company has studied and would like to develop a 600ha urban residential area in Phuong Mai Peninsula in Binh Dinh Province. The urban project aims to build housing for experts and develop tourism on the peninsula.”
The Singapore company is also interested in building the Nhon Hoi deep-water port at an estimated $700 million.
Ho Quoc Dung, Chairman of the Binh Dinh People's Committee, said: “We will create a favorable environment for investors in the province.”
Nhon Hoi Port is expected to be a key port for Binh Dinh, easing pressure on Quy Nhon Port when it is built. A new road will be built linking Nhon Hoi with National Road 19, which in turn links up with roads leading to the Central Highlands.
Tourism and industry have developed rapidly in Binh Dinh, which receives 400,000 foreign visitors a year.