Idemitsu is involved in both upstream and downstream activities in Vietnam, including gas field development, oil refining, petrochemicals, service station operations, lubricant production and sales, renewable energy, and technology.

It operates across seven industries in the nation, but is quite fragmented. To consolidate its business activities, Idemitsu decided to establish a local company to become the focal point covering all of its current business fields in Vietnam.

Susumu Nibuya, vice president at Idemitsu Kosan Co., Ltd. said, "Vietnam is a key market in our company's business strategy. Therefore, we need to cooperate more closely with each business here and seek new investment opportunities."

Among them, the Nghi Son refinery and petrochemical complex plays an important role in Vietnam's energy security. Last October, Idemitsu closed the factory for routine maintenance. Since the factory began commercial operations in 2018, this is the first time the company has suspended work for comprehensive maintenance. As a result, the facility can now achieve higher operating efficiency.

"According to our calculations, the factory's productivity will double by 2024. However, one of our problems is the increasing interest rates. With the US cutting its rates, we hope others in the market will also fall gradually," said Nibuya.

"More importantly, we need to operate the site in a stable way to turn from loss to profit. Therefore, we have to coordinate with management agencies in Vietnam, the Japanese Embassy, and our shareholders to facilitate operations and ensure stability. This will be achieved thanks to the establishment of Idemitsu Vietnam, which is the eighth Idemitsu Kosan company in Vietnam."

Vietnam also has great potential for the development of afforestation and timber exploitation. In the future, the Japanese firm is looking to expand its activities into new fields such as forestry and agriculture.

In July, Idemitsu inaugurated a commercial black pellet production plant in the south-central province of Binh Dinh, demonstrating its efforts to contribute to carbon neutrality.

The establishment of Idemitsu Vietnam coincides with the 50^th anniversary of Vietnam-Japan diplomatic ties. To realise Idemitsu Kosan's mission of contributing to a stable energy supply and solving social problems, the new company will cooperate with all relevant parties, striving to develop Vietnam's economy and build local communities through each business.