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Supplementing the Nhon Hoi Refining and Petrochemical Complex to the Oil and Gas industry Development Planning

Supplementing the Nhon Hoi Refining and Petrochemical Complex to the Oil and Gas industry Development Planning - 

The Prime Minister Nguyen Tan Dung has agreed to supplement the Nhon Hoi Refining and Petrochemical Complex, Binh Dinh province (Victory project) to Oil and Gas industry Development Planning.

Model of Nhon Hoi Refining and Petrochemical Complex

Project implementation

Nhon Hoi Refining and Petrochemical Complex Project has a processing capacity of 20 mil ton crude oil per year and expects to be completed in 2021-2025 period.

Prime Minister assigned Binh Dinh Provincial People’s Committee (PPC) to be responsible for adjusting the land location planning, solving issues related to land use of the project in accordance with Land Law and other concerning legal regulations and considering to grant investment certificate in accordance with regulations for project investors to implement the next steps. It is noted that the project must satisfy the requirements for advantage and modern technology and equipment, environmental standards, quality of products according to regulations of Vietnamese current laws, ensuring safety; clarifying the rights and responsibilities of investors, state and Binh Dinh province in the project; closely reviewing the legality of all provisions, especially the provisions on commitment of responsibility of Vietnam side ...before licensing.

The Ministries: Planning and Investment (MPI), Justice, Industry and Trade (MoIT), Finance and State Bank of Vietnam have to be responsible to support and help the Binh Dinh PPC in reviewing legal documents; assessing ability of investors, technology applied to the project.

Mechanisms and policies applicable to the project

For the investors to implement the next steps, the Prime Minister also agreed principally a number of mechanisms and policies applied to the project as: to bring it in the list of specially stimulative investing projects; to apply a 10% income-tax rate within 15 years; to exempt in the first four years and reduce in 09 following years 50% payable tax; to exempt the import tax for rude oil, and machinery, equipment and materials necessary for project development, which can not be produced by the domestic industries

After completion, the project would be able to organize trading and distributing its products in Vietnam according to market mechanisms and Vietnamese current regulations on business of gasoline, oil, refinery and petrochemical products. Vietnamese government does not commit to the import tax for refinery and petrochemical products of the project.

The project land rent is carried out according to the current regulations of the Land Law of Vietnam.

The issues regarding the export tax of project products and extending 10% income-tax privilege up to 30 years would be considered during the fund arrangement stage based on the result of the overall design (FEED) of the project

Vietnamese Government guarantees: the legal stability on investment, the right of participation of investors and lenders and the foreign currency balance for the project in accordance with the current regulations of the laws of Vietnam.

Vietnamese Government also helps investment for constructing infrastructure outside the project framework as prescribed and supports the prior right to extend the capacity of the project.

Prime Minister asks Binh Dinh PPC to guide investors on establishing environmental impact assessment (EIA) and overall design (FEED) of the project as prescribed; take the initiative to handle the problems arising during project implementation and report to the Prime Minister matters beyond it’s competence.

VietnamEnergy.vn

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