Long Son Petrochemicals Company Limited (LSP), the biggest petrochemical complex in Vietnam, will begin commercial operations in the third quarter of 2024 as it starts producing plastic pellets for the global market.

Located in Long Son Commune, Vung Tau City, Ba Ria-Vung Tau Province, southern Vietnam, LSP is a wholly owned subsidiary of Thailand’s Siam Cement Group (SCG) Chemicals, which has invested over US$5 billion in the project. 

It is also the first integrated petrochemical project in Vietnam.

After remedying a technical problem which began early this year during the complex’s trial operation, LSP will resume its test run in June before launching commercial operations in the third quarter of this year, according to SCG Chemicals.

Thammasak Sethaudom, president and CEO of SCG Chemicals, announced on Wednesday that the company was taking all necessary steps to ensure LSP could officially operate on schedule and at its maximum capacity in order to supply plastic pellets to the global market. 

Upon initiating operations, LSP will be able to produce 1.4 million metric tons of polyethylene (PE) and polypropylene (PP) pellets annually.

Both PE and PP pellets are used as input material for a range of plastic products used in everyday life, according to Kulachet Dharachandra, general director of LSP.

The complex is expected to bring in $1.5 billion in annual revenue and pay more than $150 million in value added tax (VAT) to the state budget, Dharachandra said.

It also plans to employ approximately 1,000 skilled workers, 80 percent of whom will be Vietnamese, he added.  

The largest petrochemical complex in Vietnam, LSP has a total investment of over $5 billion, making it among the biggest foreign direct investment (FDI) projects in the country, according to the Vietnam Television (VTV).   

The complex, which was completed in late 2023 after over five years of construction, covers about 464 hectares of land for its plants and 194 hectares of waterfront for a deep-water sea port.

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