Domestic oil production gets massive lift
Posted by Bao Viet Nam on September 30, 2008
Domestic oil production gets massive lift
by Na Khue
Last week Viet Nam saw the commencement of the construction of the country’s largest petrochemical project on 400 ha in the southern coastal Ba Ria-Vung Tau Province.
With a total investment of almost US$4 billion to be contributed by two domestic partners, PetroVietnam and Vinachem, and two Thai partners, Vina SCG Chemicals and Thai Plastics and Chemicals companies, this mega Long Son Petrochemical Complex project is expected to begin operational in the first phase in late 2012 and be fully operational in 2014.
It then will be the only domestic manufacturer of PE resin and VCM material for PVC production. The project will produce high-quality plastic resins to substitute imported products considerable valued at up to US$2 billion annually.
The complex will also have support facilities including a port, warehouse and power plant. It is of great importance as it will further create sustainable development of petrochemical industries within the country, while contributing to the rapid growth of the Vietnamese economy.
Meanwhile around 97 per cent of the Dung Quat Oil Refinery project has been completed. The project, being built on 338ha of land and another 473ha of sea in the Dung Quat Economic Zone in the central province of Quang Ngai, is expected to begin operation in February.
This US$2.5 billion oil refinery is planned to reach its designed capacity (6.5 million tonnes produced per year) by the end of the second quarter and its operations would help ensure energy stability for Viet Nam. When running at full capacity it will be able to meet 50 per cent of domestic demand for fuel.
According to PetroVietnam figures, the country exports from 16 million to 17 million tonnes of crude oil and imports 12 million tonnes of fuel for domestic consumption per annum.
Shares to be offered
A representative of the Ha Noi Securities Trading Center said her centre will organise transactions for shares of publicly-owned but unlisted companies before the year’s end.
The act would help improve liquidity and transparency and reduce risks for investors and facilitate fund raising for the companies themselves, she said.
Viet Nam has 1,500 public companies but so far only around 300 of them are listed at either the Ha Noi centre or HCM City Stock Exchange.
Public companies are those that have carried out an initial public offering, or IPO, and have charter capital of at least VND10 billion (US$0.6 million). They are owned by 100 shareholders or more, excluding professional investors.
For share trading at the centre, public companies must register with the centre and deposit the shares at the Securities Depository Center prior to trading at the Ha Noi centre. Contracted support by a securities company, which is a trading member of the Ha Noi centre, is another requirement.
Under a draft regulation, the price fluctuation will be 10 per cent. The rate, however, may be changed by the State Securities Commission, depending on the market situation. Trading time will be between 10am and 11:30am and 1:30pm to 3pm.
Public companies registered for trading at the centre must offer information including an annual report in summary and an audited annual financial report as well as information that may have an impact on investor interest or on the securities price.
FDI increases this year
Much of the increase in foreign direct investment (FDI) this year is partly due to major new projects. Included among those is the joint-venture between Malaysia’s Lion group and the Viet Nam Shipbuilding Industry Group (Vinashin) to build a major hi-tech steel complex, valued at US$9.8 billion. The Ninh Thuan provincial authorities awarded the investment certificate in September.
The foreign partner will contribute up to 74 per cent of the capital, or US$7.3 billion, for developing the project on 1,650 ha of land in Ninh Phuoc District. It is scheduled to be completed by 2025 for manufacturing cold-rolled steel, hot-rolled steel, plate steel and galvanised steel, with an expectedannual output of 14.42 million tonnes.
This project has contributed significantly to the US$57 billion Viet Nam attracted in foreign investment in the year’s first nine months, although the country is still facing economic difficulties.
September alone saw 113 new FDI projects with a total registered capital of $9.9 billion, and 225 projects increased their investment by $886 million.
Though the number of new projects in the first nine months was around 80 per cent of that of the same period in 2007, their combined registered capital was five times as much, which shows a larger average project scale, according to the Ministry of Planning and Investment. —
