Prime minister directs development of the national refining, petrochemical and energy center at Dung Quất

In the context of Vietnam entering a new development phase with requirements for high, sustainable growth linked to the energy transition, building large-scale energy industrial centers with integration and international competitiveness is an urgent task.

On April 3, Prime Minister Pham Minh Chinh chaired a meeting of the Standing Government and the Party Committee at the Government Office to discuss several important matters, including proposals on mechanisms and policies to promote the development of the National Center for Refining, Petrochemical and Energy at the Dung Quất Economic Zone in Quảng Ngãi.

Policy direction and strategic rationale

According to reports, the discussions emphasized that in Vietnam’s new development stage, constructing large-scale energy industrial centers with high integration and international competitiveness is essential. The Party and State’s guiding resolutions have set the direction for forming new growth poles, including national energy centers aligned with regional advantages and global development trends.

The meeting referenced Politburo resolutions and conclusions, including:

• Resolution No. 26-NQ/TW on socio-economic development and national defense and security in the Bắc Trung Bộ and central coastal provinces;
• Conclusion No. 76-KL/TW on implementing Resolution 41 regarding the orientation of the oil and gas sector;
• Resolution No. 70-NQ/TW on ensuring national energy security.

These documents set out requirements for building the National Center for Refining, Petrochemical and Energy at the Dung Quất Economic Zone, described as a key task to ensure energy security, drive development along the coast, and promote industrialization.

Integrated energy value chain and energy transition alignment

The national energy development strategy and sector plans define the role of developing an integrated oil-gas-energy value chain, including gas, LNG, electricity, refining, and renewable energy, to strengthen economic self-reliance and meet rising energy demand.

In the international context, energy transition trends, efforts to reduce greenhouse gas emissions, and competition to attract investment are creating new requirements for energy-industrial development models. Vietnam has committed to net-zero emissions by 2050, making the development of energy centers with a green, clean, integrated, and circular orientation an inevitable trend.

Why Dung Quất Economic Zone

The Dung Quất Economic Zone has a strategic location, deep-water port infrastructure, and an existing industrial system. It also hosts the Dung Quất Refinery, the first refinery in Vietnam, which provides conditions for the area to develop into the national center for refining, petrochemical and energy.

The development of the Center is expected to drive Quảng Ngãi province, the central coast region, and the national economy.

Project scope and technology integration

The project aims to form an integrated energy industrial center covering refining, natural gas, LNG, electricity, and renewable energy, linked to a circular economy and a low-carbon economy.

The development direction is to build a complete value chain from import, storage, and processing of oil and gas to energy production and related industrial products, serving domestic demand and exports. The Center is also intended to integrate new technologies such as green hydrogen, green ammonia, carbon capture and storage, and other clean energy solutions to meet energy transition requirements.

Economic, strategic, and environmental impact

The establishment of the Center is described as both an economic project and a strategic step toward ensuring energy security. It aims to increase domestic production capacity, attract foreign investment, build an end-to-end energy value chain, develop supporting industries, and create jobs, while contributing to sustainable development and reducing greenhouse gas emissions.

Mechanisms and policy implementation process

Based on international models, the People’s Committee of Quảng Ngãi province proposed a system of mechanisms and policies in two groups: policies within the Government’s authority and policies within Parliament’s authority.

After hearing the reports, the meeting concluded that the Prime Minister will continue to guide the process. The Ministry of Industry and Trade (MOIT) will lead in finalizing the dossier, while other relevant ministries and agencies will participate within their respective remits. For policies already in place, ministries and agencies are expected to implement them; matters within Government authority will be executed by the Government, and items under Parliament authority will be submitted for approval.

The meeting agreed to continue studying and finalizing special mechanisms and policies. The Prime Minister requested clarification of existing content and authority. For items under Parliament’s authority, pilot implementation is proposed, with MOIT leading in finalizing the draft National Assembly resolution.

The Quảng Ngãi People’s Committee will coordinate with MOIT and other related agencies to complete dossiers, assess specific impacts for each policy, and work with investors.

Resource mobilization and timeline

The Prime Minister emphasized that this is a major center requiring diversified resources from the State and private sectors, including central and local, domestic and foreign sources, covering both direct and indirect investment.

A Deputy Prime Minister in charge of the field will direct the completion of related dossiers. The Prime Minister stressed the spirit of “do not back down,” with a clear timetable and focused mobilization of resources to move quickly and effectively.