Work started Tuesday on a US$3.2 billion petrochemical refinery complex in the central province of Phu Yen, the Vietnam News Agency reported.
The project occupies 538 hectares in Vung Ro, including 404 hectares for a refinery and 134 hectares for a port.
It is designed to bring out 8 million tons of products, including polypropylene, benzene, toluene, petrol RON 92 and RON 95, a year.
The Vung Ro refinery complex is expected to be put into operation in 2017 and is hoped to lure attract investment in petrochemicals and supporting industry and to offer more jobs for local residents.
This is Phu Yen’s largest FDI project, and the third of its kind in Vietnam after the petrochemical refinery complexes of Dung Quat and Nghi Son in central provinces of Quang Ngai and Thanh Hoa respectively.
Construction of the Nghi Son complex began last October and is expected to cost $9 billion. The refinery will have a refining capacity of 200,000 barrels per day, or 10 million tons per year, once it comes online in 2017.
Dung Quat, Vietnam's first refinery, opened in 2009.
Vietnam has forecast that the demand for petroleum products would reach 27 million tons per year by 2025.
As part of efforts to meet the country's growing energy needs, Dung Quat aims to increase its output to 10 million tons per year by 2015 from its current output of 6.5 million tons.