Formosa Heavy Industries Group has received “an in-principle approval” from the government to build a US$12.47 bln petrochemical and oil refinery project in Vung Ang Economic Zone, Vietnam. While implementing plans of steel complex and port projects worth US$7.9 bln during the first stage of construction, Formosa discovered the zones’ great potential for petrochemical development projects. Hence the Taiwanese major proposed to local authorities allow it to implement a project planned with a capacity of 300,000 bpd of oil and 16 mln tons of petrochemicals.
The management board at Vung Ang Economic Zone agreed to grant an investment licence to the investor on the condition that it invested in building the Son Duong deepwater port. This port will aid in boosting the province’s economic development as it could accommodate vessels between 200,000-400,000 dead weight tons and was located on the north-south traffic axis.