Long Son petrochemicals investment raised to US$6.156 billion

Ho Chi Minh City authorities have authorised an increase in investment in the Long Son Petrochemicals Complex from US$5.656 billion to US$6.156 billion to support feedstock and production upgrades.

The operator, Long Son Petrochemicals Co. Ltd. (LSP), is wholly owned by SCG Chemicals, part of Thailand’s SCG Group. LSP said production was halted in mid-May 2026 because of difficult global petrochemical market conditions, constraints on feedstock supplies and logistics problems. The suspension could last until March 2027.

LSP is continuing to trade and supply polyolefins to Vietnam’s domestic market during the shutdown. It is also carrying out work on feedstock infrastructure and changing production technology.

By June 2026, the main tanks for storing feedstock were 61.5% complete. Work to adapt the olefins plant for ethane use had reached 42.9%. Completion of both projects is expected in the fourth quarter of 2028.

After the upgrades, the complex will be able to produce up to 1.35 million tons of olefins annually. Its design also provides for annual output exceeding 1.4 million tons of polyethylene, polypropylene and other petrochemicals, aimed at replacing polyolefin imports into Vietnam.

The approval requires LSP to ensure sufficient capital is available to meet project schedules and take legal responsibility for the accuracy of its submitted documents. The company must also coordinate detailed planning with Long Son commune authorities to comply with Ho Chi Minh City’s zoning master plan and applicable regulations.