Prime Minister urges mobilization of resources to build the national oil refining and energy center at Dung Quất

The Prime Minister said the national oil refining and energy center is a major project that will require mobilizing diverse resources, including state and private investment, support from central and local authorities, and both domestic and international sources of direct and indirect capital.

Government meeting on development mechanisms

On April 3, the Standing Government held a meeting on mechanisms and policies for developing the national oil refining and energy center in the Dung Quất Economic Zone in Quảng Ngãi.

Prime Minister Pham Minh Chính said the project requires mobilizing a wide range of resources and asked the Ministry of Industry and Trade to finalize the documentation on the mechanisms and policies for developing the energy center. He also directed the Quảng Ngãi Provincial People’s Committee to coordinate with relevant ministries to complete the documents, assess the impacts of each policy, and work with investors.

The Prime Minister further instructed the deputy prime minister responsible for the sector to directly oversee the completion of related documents, emphasizing execution over discussion and focusing resources to move quickly and effectively.

Investment plan and expected outputs

According to the Ministry of Industry and Trade’s proposal, the project’s total investment is estimated at about USD 16.1–20.5 billion, implemented in two phases.

• Phase one (2025–2030): USD 14.1–17.5 billion
• Additional investment through 2045: USD 2–3 billion

Upon completion, the center is expected to meet at least 30% of the country’s fuel demand, and ensure a stockpile equivalent to 30 days of production and consumption.

The project is also expected to create about 30,000 jobs, contribute about 30% to the province’s GRDP, and support ancillary sectors such as logistics and supporting industries.

Integrated value chain and clean-energy technologies

The national oil refining and energy center is planned to operate as a complete value-chain model, covering import and storage, refining and processing, and energy production and related products for both domestic demand and exports.

The center will also integrate new technologies including green hydrogen, green ammonia, and carbon capture, along with other clean-energy solutions to support energy-transition requirements.

Policy alignment and strategic rationale

The project aims to strengthen national energy security, energy self-sufficiency, and reduce reliance on imports. It is also expected to attract significant domestic and foreign investment, develop supporting industries, create jobs, and support regional economic growth in Central Vietnam.

Commentaries and reports at the meeting said that building large-scale energy-industrial centers with integration and international competitiveness is a critical requirement. The project also aligns with Vietnam’s orientation to establish new growth poles, with the national energy center connected to regional strengths and global development trends.

Earlier, the Politburo called for concrete steps to build the national oil refining and energy center at the Dung Quất Economic Zone as a core task to ensure energy security, coastal economic development, and industrialization.

Energy strategy context and site advantages

Vietnam’s national energy strategy identifies the goal of developing an integrated oil-gas-energy value chain, including gas, LNG, electricity, refining and petrochemistry, and renewable energy. Developing energy centers in a green, clean, integrated, and circular manner is described as a natural trend to help Vietnam achieve net-zero emissions by 2050.

The Dung Quất Economic Zone has a strategic location, deep-water port infrastructure, an existing industrial system, and the Dung Quất oil refinery, which are cited as favorable conditions for developing into a national oil refining and energy center.