Prime Minister Nguyen Tan Dung has decided to include the Victory-Nhon Hoi petrochemical and oil refinery project in the petrol sector’s plan.

The 22 billion USD project is listed among those receiving priority from the Government, reported the news site vnexpress.

The project, to be located in central Binh Dinh province's Nhon Hoi Economic Zone, is to be funded by the Petroleum Authority of Thailand (PTT) and its strategic partner, the Saudi Arabian oil company Saudi Aramco.

The Government has given a nod in investment priorities to the project, which were suggested by the province's leaders and the Ministry of Finance.

In a meeting held last week between local authorities and leaders of ministries and sectors to discuss issues related to the project, Chairman of the provincial People's Committee Ho Quoc Dung said he will work with PTT's representatives to complete the investment licence, which is scheduled to be issued in February this year.

Accordingly, the Nhon Hoi project will enjoy favourable assistance in difficult regions, high-tech industrial zones and economic zones. The project will also enjoy a tax-free status for the first four years, while taxes for the next nine years will be reduced by half. It will also be exempted from land leasing taxes and the tax on imported crude oil, as well as on imports of machinery and equipment which are not manufactured domestically.

When the refinery comes into operation in 2017, its products will also be sold in Vietnam. Yet, the Government has set no specific tax on the importation of the Nhon Hoi factory's products.

The project's first phase is estimated to be valued at 21.5 billion USD to produce some 400,000 barrels per day.-VNA