A gas station of Japanese firm Idemitsu. (Source: dnp.co.jp)

Hanoi (VNA) – Japanese oil firm Idemitsu Kosan Co.,Ltd (Idemitsu) and its partner Kuwait Petroleum International Ltd. (KPI) applied to register a joint venture company in Vietnam to sell petroleum products.

The new company, Idemitsu Q8 Petroleum Limited Liability, will be the first wholly foreign-owned company in the oil product distribution and retail sectors in Vietnam.

The two companies recently obtained the investment registration certificate from the Government.

"Through the establishment of a petroleum product distribution company, Idemitsu and KPI will achieve a stable supply of products for the growing Vietnamese market, where demand for petroleum products is expected to follow a steady upward trend, thereby contributing to the social and economic development of Vietnam," Idemitsu said in a statement on April 18.

Idemitsu and KPI intend to promote retail and wholesale operations, mainly through the construction and management of service stations, across Vietnam, the statement said.

Idemitsu and KPI are two foreign investors in the Nghi Son Refinery and Petrochemical Limited Liability Company in Thanh Hoa Province. They own 35.1 percent each. The project is now under construction and will start commercial operations in 2017.

Idemitsu is one of the largest oil and petrochemical firms in Japan. With more than 8,000 employees, it owns oil platforms and refineries, and produces and sells petroleum, oils and petrochemical products. As of the third quarter of last year, its revenue was 25.88 billion USD.

Kuwait Petroleum International is the international subsidiary of Kuwait Petroleum Corporation. It sells more than 450,000 barrels a day through 4,790 service stations in Europe, and its international divisions Q8Aviation, Q8Oils and International Diesel Service.-VNA