Model of the Long Son Petrochemicals complex in the southern province of Ba Ria Vung Tau.— Photo baobariavungtau.com.vn

HA NOI (Biz Hub) — The Vietnam Oil and Gas Group (PVN) bought a 11 per cent stake in the National Chemicals Group (Vinachem) in the Long Son Petrochemicals Complex project on November 17.

According to both parties, the capital transfer, which was included in the government's restructuring plan national organisations, was approved by Prime Minister Nguyen Tan Dung in August.

The transfer of stake aims to use the investment to speed up the US$4.5-million Ba Ria- Vung Tau-based Long Son Petrochemicals project.

Before the transfer, PVN contributed 18 per cent of the project capital and Vinachem contributed 11 per cent. Thailand and Qatar's investment accounted for the rest 71 per cent. Now PVN contributes 29 per cent of the project capital.

The 400ha petrochemical complex, considered the biggest of its kind in Viet Nam, will be located in the Long Son Industrial Zone near the Long Son oil refinery. The project is in the preparation stage that includes building of infrastructure and selection of contractors.

It is designed to produce 2.7 million tonnes of polyethylene and polypropylene, the raw materials required for the production of polyvinyl chloride (PVC) and other kinds of chemical products, to serve the increasing demand from the domestic petrochemical industry.

According to PVN, the local industries require up to $2 billion worth of high-quality plastic resins annually.

The project is expected to complete in the second quarter of 2019. — VNS