Executive Vice President of Idemitsu Kosan (Japan) Susumu Nibuya affirmed that the company will ensure the efficient operation of the Nghi Son Refinery and Petrochemical Complex.

Following the National Assembly's approval on November 10 of the resolution on the 2024 central budget allocation, which includes over VND 9,650 billion to offset price differentials for product offtake from Nghi Son Refinery and Petrochemical (NSRP), Prime Minister Pham Minh Chinh paid a working visit to the Nghi Son Refinery and Petrochemical Plant (Thanh Hoa) on November 11 during his working program in Thanh Hoa province.

During the meeting, Prime Minister Pham Minh Chinh emphasized that besides objective factors, the primary subjective cause of NSRP's difficulties lies in corporate governance and management with foreign key personnel having numerous shortcomings, resulting in unstable operations and unoptimized costs.

Therefore, the Prime Minister requested corporate governance restructuring, requiring increased Vietnamese participation in NSRP's leadership apparatus, while affirming that Vietnam continues to respect mutual cooperation agreements.

Subsequently, on November 22 in Hanoi, Idemitsu Kosan Co., Ltd. (IKC) officially announced and launched Idemitsu Vietnam Co., Ltd. after more than 30 years of operating in Vietnam.

Executive Vice President of Idemitsu Kosan (Japan) Susumu Nibuya (Photo: Thu Huong)

Explaining why Idemitsu Kosan decided to establish a local subsidiary only after decades of presence, Mr. Susumu Nibuya shared that the company is currently operating across seven distinct sectors that had functioned independently without cohesive synergy. In the upcoming period, the group plans to closely integrate these business segments to foster cohesion and unlock greater commercial opportunities.

Answering questions regarding the restructuring plan for Nghi Son Refinery and Petrochemical Plant, Mr. Susumu Nibuya affirmed: This past October, we completed the overall plant shutdown for scheduled turnaround maintenance. Since commercial operation commenced in 2018, this was the first full-scale turnaround maintenance conducted. Previously, technical hiccups occurred, hindering seamless operational efficiency.

Mr. Susumu Nibuya stated that the comprehensive turnaround maintenance significantly boosted plant operational performance and throughput. This brings positive momentum, with projections showing output doubling in 2024.

“Currently, market lending interest rates are rising, representing an operational challenge. However, with the US moving toward interest rate reductions, we anticipate global interest rates will gradually moderate” - Mr. Susumu Nibuya expressed confidence, affirming: “Our primary priority is ensuring stable plant operations to transition from losses to profitability. Thus, we are closely coordinating with Vietnamese regulatory authorities, the Japanese Embassy, and fellow shareholders to implement robust measures ensuring stable operations”.

According to Idemitsu Kosan's Vice President, Vietnam remains a strategic focal market. Therefore, Idemitsu Kosan will partner more deeply with Vietnamese enterprises while pursuing emerging investment avenues.

Idemitsu Kosan (IKC) of Japan holds 35.1% capital in Nghi Son Refinery and Petrochemical

Furthermore, as the Nghi Son Refinery and Petrochemical project plays an indispensable role in Vietnam's national energy security, timely liaison and coordination with the Vietnamese Government, Petrovietnam (PVN), and the Embassy of Japan are paramount. This prompted the incorporation of Idemitsu Vietnam Co., Ltd. - the 8th entity of Idemitsu Kosan Group in Vietnam.

Outlining future expansion directions in Vietnam following the inauguration of the wood pellet manufacturing plant in Binh Dinh in late July 2023, Mr. Susumu Nibuya noted that recognizing Vietnam's substantial potential in forestry and timber exploitation, the group envisions expanding into new frontiers including afforestation and sustainable agriculture.

Earlier, speaking at the launching ceremony of Idemitsu Vietnam Co., Ltd., Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam YAMADA Takio expressed hope that the new entity will serve as a springboard for Idemitsu Kosan to expand operations in Vietnam, fostering Japan-Vietnam friendship on the 50th anniversary of diplomatic ties under the theme “Hand in Hand Towards the Future of the World”.