HCM City Secures $6B Deal for Green Energy and Oil Refinery Projects
HCM City has successfully secured a landmark $6 billion investment deal that will significantly boost green energy and energy infrastructure in southern Vietnam. The agreement, signed this Monday, brings together Vietnam’s KOGI Group, Japan’s Mazda Oil Corporation, and several Middle Eastern conglomerates to develop key energy projects aimed at enhancing Vietnam’s industrial production capacity and energy sustainability.
The deal comprises two major projects: a $5 billion oil refinery and storage complex, which will be the largest of its kind in Southeast Asia, and a $1 billion green manufacturing plant. The oil refinery will boast an impressive annual processing capacity of 50 million tonnes, while the manufacturing plant will initially focus on producing engine components using hydrogen technology. The consortium also plans to build a cross-border oil pipeline connecting Vietnam’s Vũng Áng port with Vientiane, Laos, with an estimated cost between $500 million and $700 million.
Koki Kobayashi, an advisor to Mazda Oil, expressed his optimism about Vietnam’s potential as a key investment destination, especially in the energy sector. He emphasized the importance of streamlining administrative processes to foster continued growth and attract more international investment.
Nguyễn Hồng Huệ, Chairman of KOGI Group, highlighted the significance of the agreement, noting that it reflects Vietnam’s growing role in global energy security. The deal follows diplomatic discussions initiated during Prime Minister Phạm Minh Chính’s visit to Middle Eastern countries in October 2024. Huệ credited recent policy advancements, such as the Politburo’s Resolution 57 on innovation and digital transformation and Resolution 68 on private sector growth, for fostering a more attractive business environment. These initiatives are seen as key drivers enabling Vietnamese businesses to partner with global corporations and realize the country’s economic potential.