Vietnam National Chemical Group (Vinachem) has been greenlighted to restart a Laos-based US$522-million potash mining project that has lain dormant for eight years.

Laotian Minister of Planning and Investment Phet Phomphiphak presented the approval to Vinachem in the presence of Vietnamese Prime Minister Pham Minh Chinh at the Vietnam-Laos Investment Cooperation Conference held in Vientiane on Thursday.

Vinachem board chairman Phung Quang Hiep highlighted the project as a crucial political and economic mission of the state-run chemical group.

The company pledged to make serious effort and closely collaborate with relevant agencies to ensure the project’s success.

Located in Khammuane Province, the project is scheduled to begin commercial operations in July 2027.

Once operational, it is expected to generate significant economic benefits, create jobs for local communities, and bolster bilateral cooperation.

Spanning a licensed area of 10 square kilometers, the project represents one of Vietnam’s largest investments in Laos.

Initiated in 2015, the project was suspended in 2017 pending approvals from authorities.

After an eight-year hiatus, the Vietnamese Politburo approved its continuation, clearing the way for Vinachem to proceed.

The project is a vital component of the bilateral cooperation agreement between Vietnam and Laos, aiming to produce potash fertilizer for Vietnam and reduce reliance on imports, which currently meet 100 percent of domestic demand.

In its first phase, the project is expected to produce over 250,000 metric tons of potash annually, addressing a significant portion of Vietnam’s yearly demand of 900,000-1,000,000 metric tons.

In addition to the potash project, Vinachem has strengthened its trade presence in Laos, exporting products such as fertilizers, automotive tires, motorcycle tires, and batteries, with annual revenues nearing $5 million.

The group has also contributed to the agricultural sector with advanced farming programs, enhancing sustainability and showcasing the value of Vietnamese brands.

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