By The Mekong Eye
Quy Nhơn, Binh Dinh province, Vietnam, September 17, 2015
Baht Beyond Borders #10 – Thai investment booming next door
Quy Nhon Refinery, Vietnam
The beautiful coastal city of Quy Nhon along Vietnam’s central coast will soon house the Greater Mekong Subregion’s largest oil refinery. Advanced by the Thailand’s PTT Plc in partnership with Saudi Arabia’s ARAMCO, the 400,000 barrel-per-day facility will be fed by Saudi Arabian crude. It’s fuel and petrochemical products will be sold both domesticly and to export markets within the GMS and beyond. There has been little civil society input on the project, though an environmental impact statement is now in preparation.
The project will cost US$22 billion, begin construction in 2016 and take six years to complete. PTT and Saudi Aramco will each have a 40 per cent stake, while the remaining interest will be held by other Vietnamese partners. Vietnam is providing generous tax credits: abolishing import duties for the crude oil; allowing income tax to scale upward to just 10 per cent for the first 11 years, whereas the normal corporate tax rate is 22 per cent, and agreed to negotiate favorable export tariffs as well.
The refinery is part of Quy Nhon ten-year-old Nhon Hoi Economic Zone. The location is strategic, as Quy Nhon is the eastern terminus of what the Asian Development Bank describes as the Greater Mekong Subregion’s Southern Economic Corridor, running west through Cambodia, Thailand and ending at the Dawei Special Economic Zone in Myanmar.