Provincial leaders present the investment certificate for the Bio-based (1,4 Butanediol) BDO manufacturing plant at the Phú Mỹ II Industrial Park

Major projects shaping the future of the industry

In October, Vietnam’s first integrated petrochemical complex, located in Long Sơn commune, Vũng Tàu City, began its commercial operation. Backed by an impressive investment of more than USD 5 billion from Thailand's SCG Group, this facility is poised to produce a wide range of petrochemical products, including essential plastic resins such as polyethylene (PE) and polypropylene (PP). These materials will not only serve the domestic market but also bolster export capabilities, reducing Vietnam's reliance on imported polyolefins and enhancing the competitiveness of downstream industries.

The Long Son Petrochemical Complex is already making a significant impact on the region’s industrial production value. Kulachet Dharachandra, General Director of Long Son Petrochemicals Co., Ltd., noted that the complex is expected to contribute around USD 1.5 billion annually to the province's industrial output. “With world-class technology and a focus on safety and environmental sustainability, we believe the Long Son complex will be a key driver of economic growth and competitiveness for Vietnam’s petrochemical and plastics sectors,” he said.

Alongside this project, South Korea's Hyosung Group has already launched a polypropylene (PP) production plant and an underground LPG storage facility in Bà Rịa-Vũng Tàu. With a combined investment of USD 1.3 billion, these operations contribute VND 15 trillion to the province’s industrial output each year and pay over VND 2 trillion in taxes.

Continued investment reinforces the province’s strategic role

During a recent visit to South Korea, Chairman of the Bà Rịa-Vũng Tàu Provincial People's Committee Nguyễn Văn Thọ signed a memorandum of understanding with the Chairman of Hyosung Group. This agreement sets the stage for their future collaboration, with plans for a Bio-BDO (Bio-based 1,4 Butanediol) bioproduct manufacturing plant and a carbon fibre production facility in Phú Mỹ, collectively valued at over USD 1.2 billion.

These initiatives, alongside the ongoing projects at Long Son and Hyosung’s existing operations, highlight Bà Rịa-Vũng Tàu’s growing importance in Hyosung Group’s global strategy. The company views the province as a key location to support its long-term vision for the next century in Vietnam.

A hub for cutting-edge, sustainable chemical production

The Phú Mỹ 3 Specialised Industrial Park is fast becoming a focal point for chemical industry projects in the region. SCG and Hyosung are among the many major investors capitalizing on Bà Rịa-Vũng Tàu’s strategic location, modern infrastructure, and attractive investment policies. These projects are characterized by substantial capital investments, the latest technological innovations, and a strong commitment to environmental sustainability.

The Phu My 3 Specialised Industrial Park is a hub for many chemical industry projects in the province

According to the Ministry of Industry and Trade’s Department of Chemicals, Bà Rịa-Vũng Tàu is one of the few regions in Vietnam with large-scale petrochemical industrial complexes such as Long Son and Hyosung. Additionally, the Phú Mỹ 3 Industrial Park hosts a growing number of companies in the chemical sector.

The province’s industrial parks and logistics centres are strategically located near deep-water ports, far from residential areas, and are equipped with advanced transportation links. This planning ensures environmental safety and protection of water sources, while also promoting the principles of the circular economy. Within these industrial parks, waste and by-products from one plant are often used as raw materials by another, creating a more efficient, sustainable ecosystem for chemical production.

Bà Rịa-Vũng Tàu is building a robust industrial network that leverages the region’s rich supply of raw materials, including oil and gas, and its well-developed deep-water port infrastructure. Combined with its strong consumer market and expansive, well-planned investment areas, the province continues to attract leading global investors to its chemical sector.

Promoting sustainable development and industry diversification

To maximize the potential of its chemical industry, the provincial authorities are not only focusing on upstream petrochemical projects but are also encouraging investment in downstream sectors, particularly those related to post-petrochemical chemicals. This strategy aims to create a fully integrated chemical industry cluster that drives both economic growth and environmental sustainability.

Bà Rịa-Vũng Tàu is committed to developing its chemical industry in an environmentally responsible manner, prioritizing high-value-added technologies and minimizing labor-intensive processes. Investment in chemical projects must adhere to strict legal requirements and local policies to ensure compliance with environmental standards.

“The chemical facilities in Bà Rịa-Vũng Tàu, particularly those in specialized industrial zones, are required to implement wastewater treatment systems as per regulations. This commitment has led to the creation of large-scale, modern, and safe chemical industry complexes focused on green chemistry and a circular economy,” explained the Department of Industry and Trade.

Bà Rịa-Vũng Tàu’s vision of becoming a leading centre for the chemical industry is well on its way to realization. With strong foreign investment, a growing number of cutting-edge projects, and a commitment to sustainable growth, the province is poised to play a pivotal role in Vietnam’s industrial future. As global investors continue to flock to the region, the potential for innovation, job creation, and long-term economic growth remains immense./.