Dung Quat refinery to serve as the core of the national refining and energy hub

Overview of the workshop on solutions for developing a national refining and energy hub at Dung Quat Economic Zone

A Strong Foundation from Dung Quat Refinery

In the opening remarks, Dr. Le Xuan Huyen, Deputy Director in charge of the executive board of Petrovietnam, emphasized that amid increasing volatility in global energy markets and intensifying competition, the development of a national refining and energy hub in Dung Quat is both urgent and strategic.

The workshop, therefore, holds significant scientific value in gathering inputs from policymakers, experts, scientists, and enterprises, contributing to the refinement of theoretical frameworks, practical foundations, and policy recommendations for the Hub’s development.

Dr. Le Xuan Huyen, Deputy Director in charge of the executive board of Petrovietnam, emphasized that developing a national refining and energy hub at Dung Quat Economic Zone is an urgent and strategic priority

At the workshop, Mr. Dang Hai Anh, Deputy Director General of the Oil, Gas and Coal Department, Ministry of Industry and Trade, highlighted that Resolution No. 26-NQ/TW of the Politburo clearly states the objective of “expanding and developing a national refining, petrochemical, and energy hub in Dung Quat Economic Zone.” In addition, Decision No. 215/QĐ-TTg of the Prime Minister outlines the direction to “complete the upgrade and expansion of Dung Quat Refinery and form a national refining and energy hub in Dung Quat Economic Zone.”

He stressed that the development of the Hub must be considered within the broader context of national energy security. As Vietnam’s economy continues to grow rapidly, demand for electricity, energy, and petroleum products is rising sharply, while domestic crude oil and natural gas production is declining, necessitating increased energy imports.

In this context, the Ministry views Dung Quat not merely as a standalone industrial site, but as an integrated development space - linking refining and petrochemicals with gas, LNG, power, and renewable energy. “In developing the national refining and energy hub, Dung Quat Refinery will be the core,” Mr. Dang Hai Anh emphasized.

Mr. Dang Hai Anh, Deputy Director General of the Oil, Gas and Coal Department (Ministry of Industry and Trade), emphasized that Dung Quat Refinery will serve as the core in the development of a national refining, petrochemical, and energy hub at Dung Quat Economic Zone

Sharing the same perspective, Dr. Nguyen Van Tu, Deputy General Director of the Vietnam Petroleum Institute (VPI), proposed using Dung Quat Refinery as the nucleus for deeper integration and expansion of the refining–petrochemical value chain, connecting with energy sectors and supporting industries.

According to VPI’s proposal, the Hub is envisioned to consist of five components, with the first being a refining and petrochemical center combined with storage facilities, anchored by the Dung Quat Refinery (including its upgrade and expansion), gas-based petrochemicals, Ca Voi Xanh gas field and crude oil, and strategic storage projects.

Within this configuration, Dung Quat Refinery forms the foundational layer of the integrated complex, which then connects to clusters of clean energy, green energy, green industry, and logistics-services. The refinery is thus positioned as the starting point of the integrated development model.

Need for Special Mechanisms for the National Energy Hub

From a local perspective, the Management Board of Dung Quat Economic Zone and Quang Ngai Industrial Parks emphasized that the Hub should be developed based on leveraging the existing foundation of Dung Quat Refinery and current industrial and energy projects.

The Hub is envisioned as a complete value chain spanning “refining-petrochemicals-chemicals-energy-logistics,” supported by a range of preferential policies on investment, finance, land allocation, and taxation. The Management Board also underscored the critical role of Petrovietnam and BSR in leading and connecting the Hub’s development.

Dung Quat Refinery is widely recognized as the core nucleus of the national refining and energy hub at Dung Quat Economic Zone

At the workshop, BSR representatives presented proposals emphasizing the need for a flexible and tailored policy framework suited to the Hub’s specific characteristics. According to BSR, projects within the Hub typically involve large capital investment, complex technologies, long development timelines, and extended payback periods, while being highly sensitive to market, technological, and policy fluctuations.

Therefore, BSR proposed prioritizing strategic investors and applying enhanced incentives, including higher corporate income tax incentives, full exemptions on land and water surface rental, and exemptions on import duties for feedstock. The company also recommended special investment procedures to shorten project preparation time.

Additionally, BSR proposed mechanisms for selling surplus electricity within the Hub, relaxing credit limits, implementing carbon credit mechanisms, establishing venture investment funds, and developing a dedicated master plan to ensure synchronized and effective implementation.

Dr. Nguyen Quoc Thap, Chairman of the Vietnam Petroleum Association, emphasized that the development of a national refining and energy hub at Dung Quat Economic Zone should aim to enhance national self-reliance, resilience, and energy regulation capability

Providing critical insights, Dr. Nguyen Quoc Thap, Chairman of the Vietnam Petroleum Association, emphasized that the development of the Hub should not only aim to expand production capacity but also enhance Vietnam’s self-reliance, resilience, and energy regulation capability amid increasingly complex global energy market dynamics.

He noted that the Hub must integrate refining, petrochemicals, gas, LNG, power, renewable energy, logistics, environmental considerations, and specialized investment mechanisms. Flexible policies are therefore essential for key projects, shared infrastructure, and emerging energy sectors.

Mr. Do Tam Hien, Vice Chairman of the Quang Ngai Provincial People’s Committee, affirmed that the province will closely coordinate with the Ministry of Industry and Trade and relevant agencies to decisively implement the national refining and energy hub project at Dung Quat Economic Zone

Speaking at the workshop, Mr. Do Tam Hien, Vice Chairman of the Quang Ngai Provincial People’s Committee, affirmed that the development of the Hub is supported by solid political, legal, and practical foundations. He highlighted that Dung Quat Economic Zone has long been a key growth driver for Quang Ngai Province, with BSR making significant contributions in industrial output, state budget revenue, and regional development spillover.

Quang Ngai Province will continue to closely coordinate with the Ministry of Industry and Trade and relevant stakeholders to gradually shape the Hub’s development model, mechanisms, and implementation roadmap in a practical, feasible, and effective manner in line with the Government’s direction.

BSR