The Vietnam government announced on Mar 16 that it is planning to build a new refinery. Two refineries are operating in the country at present and the construction is for a third refinery. The government's aim is to raise the country's self-sufficiency and ensure adequate supply of petroleum products for local consumption.

The new refinery would be built in the southern city of Vung Tau, and the capacity is expected to be about 170,000 barrels-per-day (b/d). State-owned PetroVietnam would announce a concrete construction plan by the end of this year. The existing refineries include the 130,000b/d Dung Quat refinery in central Vietnam and the 200,000b/d Nghi Son refinery in the north of the country. Some sources said that Nghi Son refinery has an operating rate of less than 60% due to financial issues.

The Vietnamese government estimated that oil production of 400,000b/d is required to ensure sufficient supply in the domestic market. When the new refinery starts operations, imports of petroleum product can be significantly reduced. Imports of petroleum products place a heavy burden on Vietnam's national finances as oil prices are soaring on a global scale.