This is one of the three biofuel factories that PetroVietnam is planning to build, with the total capacity of 300,000 kilolitres per year. That plant is being built in Binh Phuoc province, with the total investment of about 10 billion yen (USD 122 million), of which Itochu holds the largest share of 40%. As planned, the plant will be put into operation in 2012, with the capacity of 100,000 kilolitres of bioethanol.

The plant's products will be sold domestically by Petro Vietnam. In addition to 4 billion yen contributed to build the factory, Itochu will send experts to Vietnam to support Petro Vietnam in designing and operating the plant.

Japan's Nikkei newspaper reported that Vietnam has been using a mixture of bioethanol and gasoline at the rate of 5% in 2010 and aims to increase the use of this biofuel by 2012.

By DM