Central province calls for investment from the US

Tuesday, Aug 22, 2023 15:39

A delegation from the central provincial people's committee of Quảng Ngãi joins an investment promotion event with US businesses in Houston, Texas, the US. The province called for investment from the US in energy, oil refining and the environmental sector. — Photo courtesy of Huỳnh Thị Phương Hoa

The central province has called for investment and co-operation from US businesses in energy, oil refining and industrial environment treatment technology, and to join the second phase of the Dung Quất Refinery upgrading and expansion project.

The co-operation and investment proposals were discussed at an investment promotion event by the central provincial working team in Houston, Texas last week with the participation of 32 businesses and groups including Baker Hughes, Energy Transfer, Energy Capital Việt Nam, ExxonMobil and Globalinx Group.

Vice chairman of the provincial people’s committee Võ Phiên urged energy groups from the US to speed up investment and co-operation in the Dung Quất Economic Zone – which has been designed as a key ‘green’, ‘smart’ and sustainable industrial complex by 2045 – and Bình Sơn Oil Refinery plant (BSR).

Oil tankers dock at the Dung Quất Refinery port in Quảng Ngãi Province. The province offered investment opportunities to US investors in the Dung Quất refinery plant. — Photo courtesy of Bình Sơn Refinery

He also suggested support for industrial environment treatment technology at the Dung Quất EZ and other industrial parks to meet the standards of COP26 (the 26th UN Climate Change Conference of the Parties).

Head of the Dung Quất EZ and Industrial Zones managing board Hà Hoàng Việt Phương said the province planned to develop the Dung Quất EZ as a multi-sector industry and sea-based economy centre on a total of 45,332ha.

Phương stressed the zone would focus priorities in renewable energy and a circular economy with the focus on core industries of oil refining, steel, shipyards, sea ports and high-tech industries.

He also introduced preferential policies for investment promotion and procedures for US businesses investing in the province.

Investors would also enjoy a 10 per cent tax rate for 15 years, a four-year tax exemption and a 50 per cent cut in income tax for the following nine years, he said.

He added that the tax exemption regulations would add a five-year free import tax on materials and semi-finished products for investors.

Two workers check equipment for export at the Korean heavy industries Doosan Vina factory in Dung Quất Economic Zone in Quảng Ngãi Province. — Photo courtesy of Doosan Vina

Khương Lê Thành, a member of the Bình Sơn BSR Executive board, said the second phase of the Dung Quất refinery project would be built on 108.2ha with an investment of US$1.8 billion, and it will help increase capacity of the refinery plant from 6.5 million tonnes of crude oil to 8.5 million tonnes per year.

Thành said BSR, which is now refining 85 per cent of domestic crude and 15 per cent of crude exports, could process crude oil and marine fuel oil (MFO) for export.

According to a report from the Dung Quất EZ, 346 projects have been in effect with an investment of nearly US$18 billion, including 58 foreign direct investment (FDI) projects worth $1.84 billion.

The Dung Quất EZ is an investment destination for the Việt Nam-Singapore Industrial Park (VSIP) and South Korea heavy industries Doosan Enerbility Việt Nam (Doosan Vina) with total investment of $739 million.

The provincial delegation paid a working visit to the technology centre of Backer Hughes and the oil refinery and petrochemical centre of ExxonMobil.

The province also invited the US groups and businesses to visit the Dung Quất EZ and industrial zones for further investment and co-operation in the coming time. — VNS

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