VIETNAM: USD 5.4 billion petrochemical complex starts construction

Thailand-based conglomerate SCG on 24 Feb 2018 broke ground at its USD 5.4 billion flagship project of Long Son Petrochemicals (LSP) after 10 years of preparation.

The project, at Long Son Commune, Ba Ria – Vung Tau Province, 100 km away from HCM City, is the first integrated petrochemical complex in Vietnam with total olefins capacity of 1.6 million tons per year. It is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene and other products. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, will also be built. The project is expected to begin commercial operation in early 2023.

Speaking at the groundbreaking ceremony, Prime Minister Nguyen Xuan Phuc praised the efforts of related authorities to overcome difficulties for the operation of the project. “The project is a symbol of international collaboration between Viet Nam and Thailand. It must protect natural and social environments, preserve local culture and recover forests. Related authorities must ensure living standards for those who had to move for the project by providing career training and job recruitment”, he said.

“SCG believes that the project will encourage the long-term investment in related industries throughout the value chain as well as improving competitive standard of products that will lessen the need of importing petrochemical products,” President and CEO of SCG Roongrote Rangsiyopash said.

The Long Son Petrochemical project has an area of about 464 hectares and an additional 194 hectares of waterfront area for a deep sea port. The project will create 20,000 jobs during construction. It is expected to contribute to the national state budget around USD 60 million annually as well as attract more than 1,000 high-tech workers.

“After beginning operation, the project will have a great impact on the development of the petrochemical industry and downstream businesses, such as automobiles, electronics, electrical equipment, packaging and other services of the province,” Nguyen Van Trinh, chairman of the Ba Ria – Vung Tau People’s Committee, said.

Source: bizhub.vn, Hanoi; 24 Feb 2018
(Syed Rashid Ali, Karachi, Pakistan)