The deal encompasses two major projects in Ho Chi Minh City. The first, a 5 billion USD oil refinery and storage complex, the largest of its kind in Southeast Asia, will have an annual processing capacity of 50 million tons. The second, a 1 billion USD green manufacturing plant, will focus on producing engine components using hydrogen technology in its initial phase. Additionally, the consortium plans a cross-border oil pipeline linking Vietnam’s Vung Ang port with Vientiane, Laos, with an estimated cost of 500 - 700 million USD.

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The signing ceremony in Ho Chi Minh City on May 19 

Koki Kobayashi, an advisor to Mazda Oil, expressed enthusiasm for Vietnam’s potential as an investment destination, particularly in the energy sector. He noted that many Japanese firms share this optimism but urged Vietnam to further streamline administrative processes and improve its investment climate to sustain momentum.

Nguyen Hong Hue, Chairman of KOGI Group, said the agreement builds on talks sparked by Prime Minister Pham Minh Chinh’s visit to Middle Eastern countries in October 2024. He described the projects as a testament to Vietnam’s rising prominence in global and regional energy security and a reflection of international confidence in the country’s development trajectory.

Hue also credited recent policy moves, including the Politburo’s Resolution 57 on breakthroughs in sci-tech, innovation, and national digital transformation, and Resolution 68 on private sector growth, for galvanizing Vietnamese business community. These, he said, provide a fresh tailwind for Vietnamese firms to partner with global corporations and fully unlock the nation’s economic potential.

Source: VNA