BSR, an economic engine in Quang Ngai

09:35 | 05/06/2017 Industry

(VEN) - Since it began production and trading operations in June 2010, the Binh Son Refining and Petrochemical Company Limited (BSR) in Quang Ngai Province has contributed nearly US$7 billion to the state budget. Its Dung Quat Refinery - the first project of its kind in Vietnam - not only significantly promotes Quang Ngai’s economic development but also helps attract investors to the province. Vietnam Economic News’ Hong Ha spoke with BSR general director, Tran Ngoc Nguyen, to learn about the project.  

bsr an economic engine in quang ngai

BSR attaches much importance to social contributions

What is your assessment of the Dung Quat Refinery’s role in promoting Quang Ngai’s economic development?

The Dung Quat Refinery has borne breakthroughs in Quang Ngai’s socioeconomic development. Per capita gross domestic product (GDP) and budget revenue in the province increased from US$319 and VND546.2 billion in 2005, when the project’s EPC (engineering - procurement - construction) package was kicked off, to US$608 and almost VND1.56 trillion in 2008, respectively.

Since BSR began production and trading operations in June 2010, the company has produced and sold more than 47 million tonnes of product of different kinds, meeting nearly 40 percent of domestic demand for petroleum, earning net revenues of VND785 trillion, and paying VND133 trillion (roughly US$7 billion) to the state budget. The Dung Quat Refinery has provided jobs for many local people, who account for 70 percent of the company’s total workforce.

While BSR makes an 80-90 percent annual contribution to the provincial budget, Quang Ngai has become one of the biggest provinces in Vietnam in terms of budget revenue. The province’s per capita gross regional domestic product (GRDP) has reached VND52.6 million or US$2,447. Dung Quat has made Quang Ngai become the largest oil refining and petrochemical center in Vietnam.

Someone compares the Dung Quat Refinery to an attractive, fragrant flower that helps lure investors to Quang Ngai. What do you think about this?

That’s true. The Dung Quat Refinery has made Quang Ngai attractive to investors. The Dung Quat Economic Zone has attracted 132 investment projects totaling US$10.5 billion in registered capital, including 28 foreign direct investment (FDI) projects worth almost US$4 billion and 104 domestic projects investment projects worth nearly US$6.5 billion.

The Dung Quat Refinery has made the Dung Quat Economic Zone a special place. The government has chosen the Dung Quat Economic Zone as one of the five coastal economic zones to be prioritized in benefiting from state capital investment. The Dung Quat Economic Zone was designed to become a multi-sector park mainly accommodating oil refining, petrochemical and large-scale heavy industry sectors, and open industrial city with petrochemical refinery, trade and port service centers in the future.

bsr an economic engine in quang ngai
BSR general director Tran Ngoc Nguyen

Could you tell us about BSR’s social contributions?

During the Dung Quat Refinery’s construction, BSR provided assistance for 1,400 households while upgrading and building roads, clinics and civil infrastructure in areas for the resettled. The company also constructed service and trade areas and provided technical assistance for agro-forestry-fishery production, as well as training and jobs for the resettled.

About 340 households with 1,000 residents in Binh Tri Commune have been resettled to serve the 2017 Dung Quat Refinery expansion project. BSR will be building schools and clinics for the resettled. Many of the resettled have shifted to providing catering services and grocery sales. Meanwhile, the vast majority of workers employed by the project’s subcontractors are people from the commune and neighboring localities.

BSR has taken the lead among Quang Ngai-based businesses in terms of social contributions in province. The company has so far donated VND250 billion, including VND230 billion in the 2013-2016 period for medical equipment procurement, kindergarten and primary school construction and upgrading in disadvantaged areas of Quang Ngai, such as Ly Son, Nui Thanh and Bac Tra My. The company also donated VND250 million for five heart operations of poor children in Quang Ngai Province, VND200 million for the study promotion fund and VND100 million for the “Quang Ngai homeland - the talented development” fund, and almost VND300 million for the “Companion with children to school” program. More than 250 youth union members from the company registered to donate their blood to the blood bank of the Quang Ngai General Hospital.

In 2017, BSR will continue social contribution programs inside and outside the province with an estimated funding of about VND50 billion to assist those who need assistance in Binh Son District and remote, rural and struggling areas inside and outside Quang Ngai.

Hong Ha