The US$21.5-billion Victory project, to be located in Binh Dinh's Nhon Hoi Economic Zone.— Photo motthegioi

HA NOI (Biz Hub) — Prime Minister Nguyen Tan Dung has decided to include the Victory-Nhon Hoi petrochemical and oil refinery project in plans for the country' petrol sector.

The US$22 billion project is listed among the projects receiving priority from the Government, reported the news site vnexpress.

The US$21.5-billion Victory project, to be located in Binh Dinh's Nhon Hoi Economic Zone, is to be funded by the Petroleum Authority of Thailand (PTT) and its strategic partner, the Saudi Arabian oil company Saudi Aramco.

The Government has given a nod in investment priorities to the project, which were suggested by the province's leaders and the Ministry of Finance.

In a meeting, held last week between local authorities and leaders of ministries on sectors to discuss issues related to the project, Chairman of Provincial People's Committee Ho Quoc Dung said he would work with PTT's representatives to complete the investment licence, which is scheduled to be issued in February this year.

Accordingly, the Nhon Hoi project will enjoy favourable assistance in difficult regions, high-tech industrial zones and economic zones. For instance, the enterprise income tax for the Nhon Hoi project will rise to 10 per cent in 15 years. The project will also enjoy a tax-free status for the first four years, while taxes for the next nine years will be reduced by half.

Further, the project's investor proposes to extend the enterprise's income tax of 10 per cent to 30 years, which will be considered at the time of funding. Also, the project will be exempted from land leasing taxes and the tax on imported crude oil, as well as on imports of machinery and equipment which are not manufactured domestically.

When the refinery comes into operation in 2017, its products will also be sold in Viet Nam. Yet, the Government has set no specific tax on the importation of the Nhon Hoi factory's products.

The project's first phase is estimated to be valued at $21.5 billion to produce some 400,000 barrels per day. — VNS