Long Son Petrochemical resumes operations, aiming to contribute 1.5 billion USD per year

When operating at full capacity, Long Son Petrochemical is expected to contribute 1.5 billion USD to Vietnam's economy each year, including 800 million USD in export revenue and about 150 million USD from taxes.

Chairman of Ho Chi Minh City People's Committee Nguyen Van Duoc and his delegation visited Long Son Petrochemical Refinery - Photo: A LOC

On September 20, Chairman of Ho Chi Minh City People's Committee Nguyen Van Duoc and his delegation visited and worked at Long Son Petrochemical Company Limited (Long Son commune, Ho Chi Minh City).

LSP expects to contribute 1.5 billion USD/year to Vietnam's economy

Reporting to the working delegation, Mr. Kulachet - General Director of Long Son Petrochemical Company Limited (LSP) - said that this is the project with the largest investment capital of SCG Group (Thailand) at present with a total investment of more than 5.5 billion USD.

LSP is considered one of the national key projects, the first integrated petrochemical complex in Vietnam. However, after a period of commercial operation, due to the unfavorable world economic situation, low demand, high input material prices, many petrochemical refining companies in the world had to temporarily suspend operations, including LSP.

“During this time, we are extremely grateful to have received continuous positive and valuable support from both the central and local governments. We always appreciate that,” said Mr. Kulachet Dharachandra.

Recently, the world situation has improved, LSP decided to resume operations despite difficulties, trying to supply petrochemical products to the domestic market.

One of the solutions for LSP to operate stably in production is to embark on the LSP renovation project (LSPE) with an investment value of 500 million USD.

The purpose of using ethane as a highly competitive feedstock is to minimize production costs, reduce greenhouse gas emissions and improve the long-term sustainability of operations.

Once officially operational, LSP is expected to contribute 1.5 billion USD to Vietnam's economy each year, including 800 million USD in export revenue and about 150 million USD from annual taxes.

Leaders of Long Son Petrochemical Company Limited report to the working delegation - Photo: A LOC

Impressed by the professionalism, modernity and green transformation of LSP

At the meeting, Chairman of the Ho Chi Minh City People's Committee Nguyen Van Duoc congratulated LSP on resuming operations after recent difficulties. "This is not only the joy of the group but also of Ho Chi Minh City," said Mr. Duoc.

After visiting the company, Mr. Duoc was impressed by the factory which was invested in a very methodical, modern and green way. At the same time, he highly appreciated the obligation to pay the budget (about 150 million USD per year), contributing to the development of the country in general and Ho Chi Minh City in particular as well as creating jobs for over 1,000 workers.

Regarding the proposal to invite more investors in the oil refining industry, the head of the Ho Chi Minh City government affirmed that it is not only Mr. Kulachet but also the great desire of the city.

Chairman of Ho Chi Minh City People's Committee Nguyen Van Duoc was impressed by the systematic and modern investment of Long Son petrochemical complex - Photo: A LOC

Mr. Nguyen Van Duoc commented that Long Son is an ideal investment location for the oil refining industry, currently there are many potential investors wanting to invest. In the coming time, the city leaders will call for and invite investors to maximize the advantages of this area, promote the development of industry and marine economy.

The Chairman of the Ho Chi Minh City People's Committee shared that, with the view that enterprises are the resource and driving force for development, the city is committed to providing the best possible support to investors in general and LSP in particular.

Besides, he suggested that Long Son Petrochemical Refinery continue to effectively deploy production and business activities, and at the same time hoped that LSP would expand production and exploit the project's land area to the maximum.

Long Son Petrochemical Complex resumes operations after 9 months of suspension due to unfavorable market conditions - Photo: A LOC

Long Son Petrochemical Complex resumes operations after 9-month suspension

In September 2024, Long Son Petrochemical Company Limited announced that the Long Son Petrochemical Complex (Long Son Commune, Ho Chi Minh City) will officially begin commercial operations. This is the first integrated petrochemical complex in Vietnam, with a total investment of more than 5 billion USD.

The complex is expected to develop, grow the economy in the long term and enhance the competitive advantage for the petrochemical and plastics industry in Vietnam. The products of the complex are basic raw materials for many other industries such as: packaging, agricultural production, electrical equipment, auto parts...

The Long Son Petrochemical Complex will create jobs for more than 1,000 Vietnamese workers and will transfer technology to Vietnamese workers. Once in commercial operation, the complex will pay about 150 million USD in taxes each year.

Two months later, the Long Son petrochemical complex suddenly suspended commercial operations due to reduced global demand, causing the company's petrochemical industry to also decrease profits and suffer heavy losses.

At the end of August, when the market improved, Long Son petrochemical complex resumed operations after a 9-month suspension.

A LOC - FAR AWAY

Source: https://tuoitre.vn/hoa-dau-long-son-hoat-dong-tro-lai-huong-toi-dong-gop-1-5-ti-usd-moi-nam-20250920152919501.htm