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Promoting the connection of petrochemical product supply chains in the Southern Key Economic Zones

It is necessary to create an interregional supply chain of petrochemical products, in which Ba Ria - Vung Tau plays an important role as an upstream supply chain of basic raw materials...

This is the desire and also the task set out at the conference on connecting the supply chain of petrochemical products between manufacturing enterprises and middle and downstream enterprises organized by the Department of Industry and Trade of Ba Ria - Vung Tau province. In this way, improving productivity through the use of supply chains will enhance the competitiveness of the Southern Key Economic Zones.

Overview of the Conference Connecting the supply chain of petrochemical products between manufacturing enterprises and middle and downstream enterprises

It is known that the industry accounts for more than 60% in the economic structure of Ba Ria - Vung Tau province. In particular, the chemical industry and chemical products are the industry with the highest proportion of the province. Mr. Le Van Danh, Deputy Director of Ba Ria-Vung Tau Department of Industry and Trade (BRVT) said that by the end of 2022, only investment projects have operated in industrial zones, this industry has 21 FDI projects and joint ventures with a total registered investment capital of U$646.5 million; There are 09 domestic capital projects with a total registered capital of VND 13,273 billion. In particular, Ba Ria-Vung Tau province has attracted two major projects related to chemical production, the Southern Petrochemical Complex (total investment of 5.4 billion USD) and the Hyosung plant (1.3 billion USD). These two projects will spillover to the development of petrochemical industries, plastics industries and downstream industries.


Mr. Le Cong Danh, Deputy Director of Ba Ria-Vung Tau Department of Industry and Trade spoke at the Networking Conference

BRVT is a province with strong advantages in the chemical industry of the whole country. Raw materials are available from oil and gas exploitation, deep-sea ports, established and developing production networks, highly qualified human resources, many potential investors with strong financial and technological potentials are interested. BRVT is promoting downstream industries along the value chain, with the goal of supplying raw materials regionally, nationally and for export. Sustainable development of the chemical industry as an important material industry of the province, region and the whole country in order to make the most effective use of the province's development advantages.

Mr. Toshio Kazama, Japan Desk's advisor in BTVR province and Deputy General Director of Thanh Binh Phu My Joint Stock Company, said that in recent years, the improvement of BRVT's transport infrastructure has supported the strengthening of supply chains in the Southern Key Economic Zones. From Cai Mep Thi Vai deep seaport (CMTV), Thanh Binh Phu My Company can import raw materials from abroad via container port, liquid cargo port, general port/bulk cargo or LNG/LPG. At that time, factories in industrial parks near the port can produce and process basic materials, downstream petrochemical products such as PP, PE or steel products or even produce electricity from LNG power plants. Since then, raw materials and basic chemicals from these companies will be supplied to light industries and supporting industries in the provinces of Ho Chi Minh City. HCM, Binh Duong, Dong Nai, Long An ... for the manufacture and assembly of the final finished product. After that, these finished products are brought back to CMTV port for export abroad.


Mr. Toshio Kazama, advisor of Japan Desk in BTVR province, Deputy General Director of Thanh Binh Phu My Joint Stock Company

Sharing about the key role of the plastics and petrochemical industry, Mr. Thanwa Udom- Piriyasak - Commercial Director of Long Son Petrochemical Company Limited (LSP) said that he believes that Ba Ria – Vung Tau province is the perfect place to develop into the petrochemical center of Vietnam with many advantages.

LSP plans to operate the entire complex in the near future and we look forward to continuing to receive support and guidance from Ba Ria – Vung Tau province. "We appreciate the province's directions and innovations in accelerating infrastructure development and we look forward to enhancing connectivity between industrial parks and seaports to improve logistics efficiency and ensure continuity of electricity and water supplies."  LSP commercial director shared.

Mr. Le Van Danh, Deputy Director of the Department of Industry and Trade shared, the province's perspective on investment, the formation of chemical industrial parks (intensive), large-scale modern and safe chemical industrial complexes in the direction of green chemistry and circular economy. In the coming time, in order to develop and strengthen the connection of the supply chain of petrochemical products in the locality and provinces in the South, Ba Ria - Vung Tau wishes to promote the industrial development of the petrochemical chain in the direction of developing both breadth and depth to create more value chains within the industry cluster and with industries,  other industrial and economic sectors.  Strengthen capacity and invest in new projects on the production of petrochemical products, after petrochemicals, especially virgin plastic resins, fibers and fibers to meet the needs of rubber and plastic chemical industries, textile industries in the area, the Southern Economic Zones and the whole country, as well as export.

Mr. Nguyen Van Dong - Director of Ba Ria-Vung Tau Department of Industry and Trade, said that Vietnam's southern key economic zones has many important sectors in the petrochemical supply chain, including auto parts manufacturing, electronic equipment, chemical production, etc. The localization rate in the Southern Key Economic Zones is still low, and a supply chain from upstream to downstream has not been formed. Petrochemical raw materials produced in Ba Ria - Vung Tau province are capable of supplying light industry concentration areas in the Southern Key Economic Zones.


Mr. Nguyen Van Dong, Director of Ba Ria-Vung Tau Department of Industry and Trade expressed his desire to connect the business community to participate in the implementation of programs and schemes connecting the value chain of petrochemical products

Mr. Dong wishes to connect the business community to participate in the implementation of programs and schemes connecting value chains. Ba Ria-Vung Tau province is ready to listen to difficulties and obstacles of enterprises to promptly remove and create the best environment for businesses to operate and develop. In the coming time, Ba Ria Vung Tau province will offer solutions to develop connected transport infrastructure, logistics infrastructure, digital transformation infrastructure of the state and businesses to build and develop petrochemical supply chains, promote trade advancement activities, promote and develop markets of products in the petrochemical chain to domestic and international markets.