The project is anticipated to be completed on time and should contribute to the development of Vietnam's sustainable and circular economy. Global demand for petrochemical products is expected to continue to rise in tandem with the robust expansion of the downstream processing industry, particularly in the Asia-Pacific region.

Dinh Duc Thang, general director of Stavian Quang Yen Petrochemical, said, "Raw material supply capacity in the domestic market is still limited, but there is room for growth."

The growth rate of plastic materials in Vietnam is projected to average 6.6 per cent per year between now and 2025.

According to Thang, the demand for plastic raw materials on the Vietnamese market was approximately 8 million metric tonnes (MT) in 2022, with polypropylene (PP) and polyethylene accounting for 55 per cent of the industry's total import volume.

The preparation of FEED is a crucial step in the implementation of the plant project and will lay the groundwork for the later execution of detailed design, equipment procurement and installation, as well as the actual construction of the factory.

Emanuele Pozzati, vice president of sales of Chemicals & Petrochemicals at Tecnimont, said, "We are dedicated to introducing experience, technological advances, and cutting-edge amenities to international standards, and to building an outstanding petrochemical plant."

Covering an area of 30 hectares, Stavian Quang Yen Petrochemical Plant will be constructed in Bac Tien Phong Industrial Park, Tien Phong, Quang Ninh, near the town of Quang Yen. It is anticipated that the project will begin operation in the third quarter of 2027, with an estimated total investment of up to $1.5 billion and an annual production capacity of 600,000MT of PP products.

The initiative is being funded by Stavian Quang Yen, a company primarily engaged in the manufacture and distribution of petrochemicals. The corporation was founded by Stavian Chemical and Yen Hung Liquid Port JSC, its two primary proprietors.