HCM City secures US$6 bln deal for green energy, oil refinery projects

HCM City secures US$6 bln deal for green energy, oil refinery projects

A landmark US$6 billion investment agreement was signed in HCM City Monday, uniting Vietnam’s KOGI Groun and energy infrastructure in southern Việt Nam.

The signing ceremony in HCM City on Monday. — VNA/VNS Photo Hương Giang

A landmark US$6 billion investment agreement was signed in HCM City Monday, uniting Vietnam’s KOGI Group, Japan’s Mazda Oil Corporation, and several Middle Eastern conglomerates in an effort to bolster green industrial production and energy infrastructure in southern Việt Nam.

The deal encompasses two major projects in HCM City. The first, a $5 billion oil refinery and storage complex, the largest of its kind in Southeast Asia, will have an annual processing capacity of 50 million tonnes.

The second, a $1 billion green manufacturing plant, will focus on producing engine components using hydrogen technology in its initial phase. Additionally, the consortium plans a cross-border oil pipeline linking Việt Nam’s Vũng Áng port with Vientiane, Laos, with an estimated cost of $500-700 million.

Koki Kobayashi, an advisor to Mazda Oil, expressed enthusiasm for Việt Nam’s potential as an investment destination, particularly in the energy sector. He noted that many Japanese firms share this optimism but urged Việt Nam to further streamline administrative processes and improve its investment climate to sustain momentum.

Nguyễn Hồng Huệ, Chairman of KOGI Group, said the agreement builds on talks sparked by Prime Minister Phạm Minh Chính’s visit to Middle Eastern countries in October 2024. He described the projects as a testament to Việt Nam’s rising prominence in global and regional energy security and a reflection of international confidence in the country’s development trajectory.

Huệ also credited recent policy moves, including the Politburo’s Resolution 57 on breakthroughs in sci-tech, innovation, and national digital transformation, and Resolution 68 on private sector growth, for galvanising Vietnamese business community. These, he said, provide a fresh tailwind for Vietnamese firms to partner with global corporations and fully unlock the nation’s economic potential. 

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