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VietNamNews

Oil refinery expansion backed

Update: July, 31/2012 - 10:14

 

The Dung Quat Oil Refinery (pictured)will enjoy corporate income exemption over 43 years. — VNA/VNS Photo Ha Thai
HA NOI — The Prime Minister ratified a decision on a preferential financial regime for the country's first oil refinery to ensure its business efficiency and future expansion.

According to a report published on the Government website www.chinhphu.vn last Friday, the Dung Quat Oil Refinery will be exempted from corporate income tax of 25 per cent for four years, and subsequently be subject to only 10 per cent for 30 years, and 12.5 per cent for a further 9 years.

Under Decision No 952/QD-TTg, the Viet Nam National Oil and Gas Group (PetroVietnam) will take responsibility for approving and supplementing charter capital for the Binh Son Refining and Petro-chemical Co Ltd, the operator of Dung Quat.

Nguyen Hoai Giang, director of the Binh Son Refining and Petro-chemical Co Ltd, told VnExpress.net that the incentives would help the refinery operate more effectively, attract new investors and raise the annual capacity to 10 millions tonnes of petroleum in the future.

In addition, higher capacity would help the refinery supply more products for the local market in a bid to ease pressures on the rising exchange rates between the US dollar and Vietnamese dong, he said.

Dung Quat now has an annual capacity of over 5 million tonnes and is running at full capacity.

In the first half of this year, Binh Son Co produced and sold 2.68 million tonnes of petrol products in the domestic market and reaped a total revenue of VND60 trillion (US$2.86 billion). It paid some VND7.4 trillion ($352 million) to the State budget.

It planned to churn out 6 millions tonnes of petroleum with an expected turnover of VND108 trillion ($5.1 billion) by the end of this year, hoping to add an estimated VND15 trillion ($714 million) to State coffers this year. — VNS

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