Vung Ro oil refinery project.—File Photo

PHU YEN (Biz Hub)— Central Phu Yen Province will allow the planned Vung Ro oil refinery project to increase its investment capital from US$1.7 billion to $3.18 billion.

This will double the oil refinery's annual output to eight million tonnes. Construction is due to start this quarter and be completed in four years.

Since the project was licensed in 2007, the investor – British Virgin Islands's Technostar Management Ltd –decided to increase investment based on market demand.

The oil refinery would be built in Hoa Tam Industrial Zone, in Nam Phu Yen Economic Zone.—Photo pcphuyen

The oil refinery would be built in Hoa Tam Industrial Zone, in Nam Phu Yen Economic Zone, instead of on more than 185ha in Hoa Tam and Hoa Xuan Nam communes.

The project is expected to help the central province attract other projects to the Hoa Tam Industrial Zone, especially in petro-chemistry and post oil refinery supporting industries.

Besides supplying a significant volume of petrol products to the domestic market and reducing the country's dependence on petrol imports, the project is also expected to contribute roughly $111 million yearly to the State budget and generate roughly 1,300 jobs.

Minister of Planning and Investment Bui Quang Vinh said the investor should be given incentives such as exemptions from land use fees and crude oil import taxes. — VNS