Billion-Dollar Petrochemicals – A Strategic Driver of Ho Chi Minh City’s Mega-Urban Future

Restarting a Billion-Dollar Project: A Post-Merger Boost

The relaunch of the Long Sơn Petrochemical project (LSP), with a total investment of over USD 5.5 billion, including nearly USD 500 million in recent additional funding, has marked an important milestone for the new Ho Chi Minh City. This is Vietnam’s first integrated petrochemical project, designed with a capacity of 1.35 million tons of ethylene per year and about 2 million tons of other petrochemical products such as polyethylene and polypropylene, serving the plastics, packaging, electronics, automotive, and supporting industries.

Previously located in the former Ba Ria–Vung Tau, after the merger into Ho Chi Minh City, the project has become part of a critical industrial infrastructure network, directly connected to the Cai Mep - Thi Vai port system, the Bien Hoa - Vung Tau expressway, and the inter-regional logistics network. This enables the project to optimize transport costs and expand export markets to Asia-Pacific and further to the U.S. and Europe.

Ethane – A New Solution for Sustainable Competitiveness

A particular highlight is that LSP is pioneering the use of ethane as its primary feedstock, replacing naphtha – which is common in many regional petrochemical plants. Ethane offers advantages by reducing production costs and being more environmentally friendly, cutting CO₂ emissions, and aligning with the global green energy transition.

According to petrochemical experts, the choice of ethane not only enhances competitiveness in product pricing but also opens opportunities to integrate into international green value chains. This is a key advantage for LSP to become a modern petrochemical hub meeting the stringent standards of markets such as the EU, Japan, and the U.S.

At the same time, LSP is implementing waste recycling systems, energy recovery, and EU-standard emission and wastewater treatment, creating the image of a “green petrochemical” – rare in a sector often associated with environmental risks.

Creating 1,000 Jobs, Spreading Regional Economic Impact

According to the latest announcement, once fully operational, the LSP project will generate more than 1,000 direct jobs and tens of thousands of indirect jobs in logistics, services, trade, construction, and supporting industries.

Beyond job creation, LSP has significant ripple effects across the region. From the Cai Mep - Thi Vai port system, petrochemical products can be distributed to industrial zones in the former Binh Duong, Dong Nai, and today’s Ho Chi Minh City, forming a seamless supply chain. The added value of petrochemicals lies not only in raw materials but also in downstream industries such as technical plastics, new materials, and high-tech products.

Furthermore, the attraction of multinational corporations to satellite projects around LSP is expected to boost foreign direct investment (FDI), facilitate technology transfer, improve management capacity, and enhance competitiveness for Vietnamese enterprises.

Petrochemicals and Ho Chi Minh City’s Global Value Chain

In the broader picture, LSP is not just a standalone petrochemical plant but an integral link in Ho Chi Minh City’s international value chain strategy.

With an annual output of millions of tons of petrochemical feedstock, LSP significantly reduces the import of virgin plastics – which costs Vietnam billions of dollars each year. At the same time, thanks to direct connectivity with the deep-water Cai Mep - Thi Vai port cluster, LSP’s products can be exported directly to distant markets, cutting shipping time by 7–10 days compared to transshipment through other regional ports.

More importantly, LSP contributes to building a closed value chain: from raw material extraction and processing, petrochemical production, plastic and auxiliary chemical industries, to trade and financial services. This foundation enables the new Ho Chi Minh City to become not only a consumption hub but also a global-scale production and export center for petrochemicals.

In the journey to build a multi-polar, modern, and sustainable mega-city, the Long Sơn Petrochemical project holds strategic significance. It creates immense economic value while shaping a green, modern industrial value chain aligned with global development trends.

From the more than USD 5.5 billion investment boost, LSP demonstrates that the new Ho Chi Minh City is not only expanding in administrative scale after the merger but also upgrading its foundational industrial strength, consolidating its role as Vietnam’s and Southeast Asia’s economic leader.