Vietnam government to give out tax incentives to oil refinery

The government of Vietnam has approved tax incentives for the Vung Ro oil refinery. Construction of this refinery, which will be built in Phu Yen province in central Vietnam, is set to begin this summer after more than two years of delay caused by land clearance difficulties.
Vung Ro Oil Refinery, which is the country’s first wholly foreign-invested oil refinery project, will produce liquefied petroleum gas (LPG), jet fuel, gasoline, diesel, polypropylene, benzene and sulphur.
The project is being implemented by the U.K.’s Technostar Management Ltd. and Russia’s Telloil. Estimated cost of the project is about 76.7 trillion dong (US$3.7 billion).
When operational in 2016, the refinery will enjoy a 7% import duty for petroleum, 5% for liquefied petroleum gas (LPG) and 3% for petrochemical products. The facility will also enjoy a zero percent export tax for its products, including gasoline, polypropylene, benzene, toluene, xylene and diesel. (February 28, 2013)