HCM City: A landmark 6 billion USD investment agreement was signed in Ho Chi Minh City on May 19, uniting Vietnam’s KOGI Group, Japan’s Mazda Oil Corporation, and several Middle Eastern conglomerates in an effort to bolster green industrial production and energy infrastructure in southern Vietnam. The deal encompasses two major projects in Ho Chi Minh City. The first, a 5 billion USD oil refinery and storage complex, the largest of its kind in Southeast Asia, will have an annual processing capacity of 50 million tonnes. The second, a 1 billion USD green manufacturing plant, will focus on producing engine components using hydrogen technology in its initial phase. Additionally, the consortium plans a cross-border oil pipeline linking Vietnam’s Vung Ang port with Vientiane, Laos, with an estimated cost of 500-700 million USD.

According to Vietnam News Agency, the collaboration between these multinational entities is expected to significantly enhance Vietnam’s energy sector capabilities. The oil refinery and storage complex will not only meet domestic consumption demands but also position Vietnam as a key player in the regional oil market. Meanwhile, the green manufacturing plant aims to promote sustainable industrial practices by leveraging hydrogen technology, reducing the carbon footprint associated with traditional manufacturing processes.

The cross-border pipeline is anticipated to further strengthen regional energy cooperation by facilitating efficient oil transportation between Vietnam and Laos. This strategic infrastructure development is projected to support economic growth and energy security in the region. The investment agreement represents a significant step towards achieving Vietnam’s long-term energy and industrial goals.