Doc Soi - Dung Quat 500KV Substation starts operation

Doc Soi - Dung Quat 500KV Substation starts operation

A 500KV Substation installed at Doc Soi in Binh Son district, Quang Ngai which is a point of the North - South 500KV electricity line has been recently put into operation by Vietnam's Electricity Transmission Corporation. 

The substation is part of the Pleiku - Doc Soi - Danang 500kV transmission line project which was approved by the government to be invested with a total capital of VND 533 billion (~ US$ 30 million), financed by the World Bank's credit.

In addition to providing electricity to Dung Quat EZ, Chu Lai Open EZ and other localities in central provinces, this substation also helps resolve the overloading situation for the two 500KV Substations in Da Nang and Pleiku. 

In order to explore the full capacity of the substation, the Central Power Projects Management Board also installs simultaneously the 220KV transmission lines including Doc Soi – Danang, Doc Soi - Quang Ngai, Doc Soi – Dung Quat ones, and three 220kV substations
located at Dung Quat, Quang Ngai and Tam Ky.

According the design, the capacity of this sub-station is 500/220kV - 2 x 225MVA. Such capacity is high enough to sufficiently provide power for about 10 refineries as big as Dung Quat oil refinery.
TVdanh

Solutions proposed to increase 2010 FDI inflow

Solutions proposed to increase 2010 FDI inflow
08:14:14.0, 12-23-2009

FDI flow to Viet Nam in first 10 months of 2009, including both new
investment and capital increase, is estimated to reach nearly US$ 19 billion
and is forecasted at US$ 20-22 for the whole year, which is a sharp drop in
comparison with last year's figure. Concerning the global economic crisis,
the FDI flow to Viet Nam in 2009 is still considered a little bit positive;
however, effective and feasible solutions should be envisaged and exercised
to gain a brighter FDI scenario in 2010.

In a recent report on Vietnam's FDI drafted by the Ministry of Planning and
Investment, five categories of solutions are proposed to further improve the
investment environment and make it more attractive to foreign investors.
Among them, policy standardization and infrastructure improvement are
regarded as key elements.

According to the plan, the regulations on enterprises, investment, land
management, construction and business will be reviewed and systemized to
establish a coherent and synchronized system. Besides, the criteria and
conditions for some conditional investment fields will be formulated
comprehensively and clearly, and will be openly publicized so that all the
related parties, especially foreign investors can have full access to such
information. New regulations will be promulgated to govern new-arising
business practices related to foreign investors, while out-of-date, unclear,
conflicting regulations will be revised or removed. Simplified and
transparent investment procedures and "one-stop-shop" mechanism in
procedures processing are believed to help cut down investors' waiting time,
cost, confusions and loss of chance.

The overall infrastructure and utility supplies are always matters of
concern of foreign investors, because these factors directly affect the
smooth operations of their business and their operational costs. The areas
to be extensively focused on include: electricity supply, water supply,
waste water treatment, highways and railways connecting major economic hubs
and seaports, infrastructure and logistics at seaports ... In order to
archive this goal, more incentives on infrastructure development and less
restrictions on some conditional sectors such as port logistics will be
applied to encourage the involvement of private and foreign sectors in these
fields, besides the State's investment.

Also in the report, the issues of building a competent and skilled
workforce, streamlining and harmonizing the economic master plans of
different regions and provinces, improving the professionalism of investment
promotion strategies, activities, speeding up land clearance progress ...
are also important solutions. It's clear that much more work is required to
materialize the targeted US$ 22-25 billion of FDI attraction in 2010, and
it's clearer that no single solution is sufficient, but an overall strategy
to make the general investment climate more attractive and more
business-friendly is necessary.

By TV Danh

Letter of December 2009

Letter from Dung Quat Economic Zone Authority

December 2009

In Dung Quat Economic Zone now, there have been 111 projects licensed with total registered capital of approximately US$ 7.7 billion, 13 of which are 13 FDI projects, with total registered capital of US$ 3.4 billion; another 28 projects capitalized at US$ 2.7 billion have been approved to be invested. 51 projects are now in operation, with a combined implemented capital reaching US$ 4.1 billion, while 21 other projects are under construction. Since 2006, 50% of state revenues of Quang Ngai province come from Dung Quat EZ. Our Economic Zone’s contribution to the state budget is estimated to be  around VND 3 trillion in 2009 and nearly 10 trillion in 2010.

With an aim to rapidly develop the key economic region of Central Vietnam, the Prime Minister promulgated in 2005 the Decision No. 50/TTg to establish Dung Quat EZ and regulate its operational regime, and Decision No. 72/2005/QD-TTg to set up our Dung Quat Economic Zone Authority (DEZA) and regulate our functions, duties, powers and organizational structure. According to these institutional regimes, the vision for Dung Quat EZ is as follows:

·       Dung Quat to become a multi-portfolio, multi-disciplinary economic zone, with the driving pillars being oil refining,  petrochemical, chemical industries and large-scaled heavy industries including shipbuilding, steel, cement production, container production; and other sectors of consumer goods, cargos for export etc,

·       Dung Quat deep seaport, Chu Lai airport and industrial-service urbans of Van Tuong and Doc Soi are core supporting elements of Dung Quat development,

·       Dung Quat to gradually play the role as the driving force for the growth and become the industrial-service hub of the key economic region of Central Viet Nam, which stimulates the industrialization and modernization of Central region and the whole country,

·       Dung Quat to become a major hub for international and regional trade and transactions.

In Dung Quat EZ, a coherent system of infrastructure and social amenities have been built up to meet the requirements of existing investors and to attract more domestic and foreign investment. Many large-scale projects have been completed and are now in commercial operation, such as Dung Quat Oil Refinery, Doosan-Vina Heavy Industries Complex, Dung Quat Shipyard which is going to finish and launch a 100,000-DWT vessel.

Dung Quat EZ, which covers an area of 10,300 hectares, is strategically located for convenient international and regionally exchange and transactions. Under the official consent of the Prime Minister, the Quang Ngai Province in collaboration with Ministry of Construction are proceeding with a master plan to expand Dung Quat EZ from current area of 10,300 ha to 46,000 ha, in association with construction of a new seaport (Dung Quat Port II) to meet the requirement of an open economy. 

With reference to the institutional regulations mentioned above, investors in Dung Quat will enjoy the preferential policies at the highest level that the law of Vietnam defines, as follows: 

·       Corporate income tax (CIT) rate of 10% shall be applicable within 15 years from the date of production and business commencement

·       CIT shall be exempt for the first 04 taxable years and reduced by 50% of payable  tax for the 09  years thereafter

·       As for high-technology projects and large-scale ones which promises  economic – social significance in the region, CIT rate of 10% shall be applicable for  the entire project life-time, subject to the consideration and approval of the Prime Minister (practically, Doosan Vina and Guang Lian projects in Dung Quat have enjoyed this special incentive).

·       There are some other preferential policies such as:  land rental exemption/reduction, special import tariffs for commodities purchased to form fixed assets, reduction of personal income tax and a number of specific policies provided by Quang Ngai province to protect the rights and the business opportunities of the investors.

In addition, DEZA are conducting the reform on the investment procedures to simplify them so that the investors can benefit more from the "one-stop-shop" public services provided by DEZA and Quang Ngai province. A so-call “Investment Assistance Team” under DEZA has been set up to provide guidance, support and consultancy to investors.

With good performance and considerable achievements during the past time, DEZA were granted with the certificate of "Viet Nam Brand in 2008" and selected as "One of the best 500 Viet Nam brands in 2009" by the Association of Science and Technology of Viet Nam. DEZA also received the “Second-class Labor Medal” awarded by the State President; and relevant authorities are considering awarding the “First-class Labor Medal” to DEZA in recognition of our efforts and achievements in the construction and development of Dung Quat EZ.

In the ongoing global economic integration process, DEZA are committed ourselves to affording favorable conditions for the investment and business activities of investors in Dung Quat which are beleived to contribute to the construction and development of the Key Economic Region of Central Vietnam.

It would be our pride and honor to have your business presence in Dung Quat.

With our warm thanks and sincere regards,

Dung Quat Economic Zone Authority

Dung Quat PP Plant to come on stream in Q1.2010

US$4.8 million for refinery’s SPM maintenance

$4.8 million for refinery’s SPM maintenance 08:07:49.0, 11-12-2009 A contract for provision of physical routine inspection and maintenance of SPM topside & floating hoses and subsea pipeline of Dungquat Refinery has been inked at a value of $ 4.8 million. The Single Point Mooring (SPM) facility, which has a lifetime of around 20 years, is designed to load crude oil from vessels during the normal operation time or diesel oil during the factory start-up time. According to the terms of the contract, the consortium of contractors shall be responsible for the inspection & maintenance of the SPM facility for 1 year.

The SPM buoy has a diameter of 12 meters, height of 5 meters, of which the sub-sea part is 3.75 meters high, the above-sea part 1.25 m, with a loading capacity of 6,000 cubic meter of crude per hour. Crude oil is pumped from vessels via the SPM facility into the pipeline-end-manifold (PLEM) and the pipeline and runs into the crude tanks. After a period of operation, residuals occur inside the pipeline, then a pipeline pigging system will be applied and operated at a speed of 1.300 cubic meter per hour to make the pipeline clean. SPM system can accommodate up to 110,000-ton vessels. The pipeline connecting the SPM and the crude oil tanks farm is 4.2 km long, 3.2 km of which runs undersea and the rest goes underground. The said contract was entered into by and between Binh Son Oil Refining & Petrochemical Co., Ltd. (BSR) and the joint venture of POS, EIV and Malaysian OSS.

Put into operation in June 2008, the SPM has received so far 16 vessel visits, loading a volume of 1,260 tons of crude serving the trial operation of Dung Quat refinery. According to the government’s report to the National Assembly early this month, the trial operation has reached 99% of the overall schedule; the owner and the contractor are running against time to complete this giant factory and conduct final hand-over in December 2009 or January 2010 at the latest. Title Blog Entry My first translation on new duty

Doosan Vina and “made in Vietnam” desalination evaporator 

08:47:13.0, 11-16-2009

Doosan Heavy Industries Vietnam Co., Ltd. (Doosan Vina) organized a ceremony on 13 th Nov 09 at Dung Quat Economic Zone to celebrate the completion of the first-ever “Made-in-Vietnam” desalination evaporator to be exported to the United Arab Emirates.

After 8 months of manufacture, fabrication and pressure testing, the equipment is now completed with a weight of 40 tons, dimensions of H 10.6m x W 29.2m and L 100,4 m, capable of producing 75,900 cubic meters of portable water from seawater daily. Such volume of portable water is estimated to meet the demand of around 250,000 people (equal to the population of a small city). It’s said that this technologically advanced evaporator “turns salty ocean water into portable water for our thirsty planet”. The giant equipment will be transported to and installed in Suweihat city – 60 kilometers to the west of UAE’s capital city Abu Dhabi.

Presenting at the Ceremony, Deputy Prime Minister HOANG TRUNG HAI appreciated this event which is said to help the heavy industry of Vietnam reach a higher level. He also encouraged Doosan Vina to continuously focus on and maintain a good growth of this desalination industry and train and educate the local workers to improve their knowledge and skills. Representative of Doosan Vina’s mother company which is pursuing a global vision called this $40 million product the “Made in Vietnam” one, made by Doosan Vina’s workers with all their great cleverness, hard-working and dedication.

On the occasion of the event, the Company also made a donation of VND 300 million to the local government to help the local people overcome the consequences of the devastating Ketsana typhoon.

The Korean-invested Doosan Vina is now considered a successful FDI project in Dung Quat Economic Zone. Overcoming the relative difficulties in a newly-developed economic hub, Doosan Vina has made admirable progress in terms of factory construction and completion, products manufacture and export, image building throughout Vietnam and overseas etc. The celebration and export of this evaporator helps feed the pride of Doosan Vina people and is expected to be a stimulus to a dynamic Dung Quat under the circumstance of the current global economic downturn.

Compiled by TVDANH

Dung Quat PP Plant to come on stream in Q1.2010

16:19:01.0, 12-07-2009

According to source from Dung Quat Refinery Management, the supporting utilities supplying power, water and gas for Dung Quat Polypropylene (PP) Plant have been put into trial operation. It’s expected that the technology units of this PP Plant will come on stream in the first quarter of 2010, using the propylene supplied by  Dung Quat Oil Refinery (propylene recovery unit) to process the first batch of “made-in-Vietnam” PP. In June 2009, PetroVietnam General Services Corp (PetroSetco) announced that it was contracted to trade and distribute all the PP products manufactured by this Plant. The company is also considering the investment of a packaging factory in Dung Quat which will use PP materials as the input to manufacture types of packaging products to be supplied to various clients, including fertilizers and animal food producers. PP plant owned by PetroVietnam is worth of US$232 million, its annual capacity is designed to be 150,000 tonnes of PP output. PP is a kind of translucent and heat-resistant polymer used in a wide variety of applications, including packaging, textiles, automotive components etc. The plastic industry is one of Vietnam’s major export pillars, with plastic products export value in 2008 was more than US$ 750 million; but this industry depends totally on imported materials. In 2008, Vietnam imported more than 480,000 tonnes of PP, therefore, the annual output of Dung Quat PP Plant is likely to reduce the dependence on PP import, and open more opportunities for the domestic plastic industry. Compiled by TVDanh

Doosan Vina and “made in Vietnam” desalination evaporator  (16/11/2009)

$4.8 million for refinery’s SMP maintenance  (12/11/2009)

Industrial ‘city’ proposed for Dung Quat Economic Zone  (06/10/2009)

PM Nguyen Tan Dung surveyed Dung Quat Oil Refinery  (24/09/2009)

PTSC to be EPC contractor of Dung Quat Bio-Ethanol plant  (28/08/2009)

Polypropylene to be exported early Sep.  (28/08/2009)

Petro Vietnam has new member  (28/08/2009)

Dung Quat Refinery capital increased up to over $ 3 bln  (20/08/2009)

DQEZ to be enlarged to 45,332 ha  (19/08/2009)