Vietnam seeks Turkish aid in building refineries

State-owned Vietnam Oil & Gas Corporation, known as Petrovietnam, is seeking companies to construct new refineries – a process that may help Turkish builders who have suffered considerable losses due to the turmoil in Libya.

Vietnam is the fourth-largest oil producer in Southeast Asia, a top executive of Petrovietnam told the Hürriyet Daily News in Istanbul on Friday.

“With its vast oil and gas resources, Vietnam aims to increase the number of refineries,” said Dam Thi Huyen, the deputy general director of Petrovietnam. She was speaking on the sidelines of the Turkey-Vietnam Trade and Investment Forum, organized by the Confederation of Businessmen and Industrialists of Turkey, or TUSKON. “We invite Turkish construction firms to Vietnam.”

Petrovietnam’s crude oil output nears 15 million metric tons per day, but Vietnam aims to increase this capacity through more investments in oil fields. Currently the country has two oil refineries – Dung Quatin in the eastern province of Quang Ngai and Nghi Son, to the south of Hanoi.

“The Vietnamese are looking for foreign investment to build new refineries,” said Rızanur Meral, the TUSKON chairman, speaking after the business meeting that was chaired by Nguyen Thi Doan, Vietnam’s vice president.

Too big a task?

However, Meral pointed toward the difficulty of such huge investments, reminding that a refinery investment in Vietnam might cost $6 billion. “Such [a big amount] does not seem possible at first glance,” he said, adding that Turkey’s southern province of Ceyhan might be the priority for Turkish firms, since Turkey’s own refinery needs are considerably high.

Still, attracting such offers is important for Turkey, Meral said. Vietnamese firms are also interested in importing Turkish construction materials. Leading Vietnamese construction firms, including Dai Dong Tam, Vietland and Thai Hoang, all participated in bilateral meetings with Turkish companies on Friday.

“We are ready to support Turkish firms which consider to invest in our country,” said Vietnam’s vice president, reminding that her country attracted $20 billion in foreign direct investment last year alone. Vietnam is a gateway to key markets such as Malaysia, Cambodia, Brunei and Myanmar, she added.

Vietnam’s imports to Turkey have reached $636 million by the end of last year while Turkey’s exports to the Southeast Asian nation stood at $108 million.

Tags: refinery