VINACHEM

In the framework of the Vietnam - Laos Investment Promotion Conference, held on December 3, 2025, with the presence of the Prime Ministers of both countries and leaders of ministries and sectors. Mr. Phùng Quang Hiệp – Member of the Government Party Committee, Secretary of the Party Committee, and Chairman of the Member Council of the Vietnam National Chemical Group (Vinachem) – was invited to deliver a presentation at the plenary session. His speech attracted the attention of delegates from both countries as it comprehensively addressed the cooperation orientation, development potential, and progress of key projects Vinachem is implementing in Laos, particularly the Potassium Rock Salt Mining and Processing Project in Khammouane province.

The Conference – A Strategic Forum to Promote Vietnam-Laos Economic Cooperation

In his presentation, Mr. Phùng Quang Hiệp emphasized that the Vietnam - Laos Investment Promotion Conference is a crucial forum for the leaders of the two Governments, ministries, sectors, and the business community to discuss cooperation strategies, resolve difficulties, and open up new investment directions. Given that the two countries are celebrating major milestones – the 50th Anniversary of Laos' National Day, the 80th Anniversary of Vietnam's National Day, and the respective National Party Congresses – the conference provides a favorable platform to promote comprehensive cooperation, especially in the chemical and mining industries.

Vinachem – Large Production Capacity and Wide Cooperation Opportunities in Laos

Affirming Vinachem's position in developing foundational industries, he stated that the Group supplies over 10 million tonnes of fertilizer, 7 million tyres and tubes, and one million tonnes of chemicals and detergents annually, while also being Vietnam's largest domestic battery and accumulator producer with revenue exceeding $2.5 billion and an export market spanning more than 70 countries. Laos is assessed as a market with high potential and substantial demand for fertilizers, tyres, tubes, batteries, accumulators, etc. – areas where Vinachem has strengths. In recent years, trade turnover between Vinachem and Lao enterprises has reached approximately $70 million/year, with a positive and sustainable growth trend expected in the coming period.

The Potassium Rock Salt Mine Project in Khammouane – The Highlight of the Vinachem Chairman’s Presentation

In his presentation, the Vinachem Chairman dedicated a significant portion of time to updating the progress of the Potassium Salt Mining and Processing Project in Khammouane – a key project for the Group and one with strategic importance for the supply security of Vietnam's fertilizer industry. He expressed profound gratitude to the leaders of the two Governments and the ministries and sectors for creating favorable conditions for Vinachem to gradually overcome difficulties and accelerate the project's progress. Recently, the Group has sent numerous working delegations to Laos to work directly with the Government, the Ministry of Industry and Commerce, Khammouane province, the Laos-Vietnam Cooperation Committee, the Department of Geology and Mines, the Department of Environment, and other functional agencies to enhance coordination and address on-site issues.

To date, the project has adhered to important deployment milestones. All materials and equipment from Vietnam and Thailand have been transported to the site; the revised Feasibility Study (FS) Report was completed 1.5 months ahead of schedule, concluding that it is technically feasible and socio-economically effective; the complete FS dossier has been submitted for appraisal; and the units for verification and environmental impact assessment reporting have been agreed upon. The Group has also worked with credit institutions to arrange capital, organized a scientific workshop to gather expert opinions, and proactively prepared tender documents for FEED design, the EPC contract, and material facilities to be ready to enter the construction phase. Vinachem is simultaneously studying the model of an industrial farm or a high-tech zone to meet Laos' preferential policies, opening up opportunities to form new value chains and align with the host country's industrial development orientation.

Strategic Significance and Vinachem's Determination in Project Implementation

According to Mr. Phùng Quang Hiệp, Vietnam must import nearly 1 million tonnes of potassium annually, of which about 350,000 tonnes come from Laos; Vinachem imports about 190,000 tonnes. Therefore, the successful implementation of the potassium project is particularly vital for supply independence, ensuring sustainable development, and serving as a double-digit growth driver for the Group in the 2026–2030 period. This project also contributes to deepening the special friendship and cooperation between Vietnam and Laos.

The Vinachem Chairman affirmed that completing the potassium rock salt mine project on schedule is one of the Group's key political tasks – both a responsibility and a matter of honor. He fully embraced the guiding spirit of Prime Minister Pham Minh Chinh: "Don't say no, don't say it's difficult, don't say you have it but don't do it; just plan and do, don't plan to retreat," considering this the overarching motto for action throughout the project's implementation.

Recommendations to Promote Investment Cooperation and Optimize the Efficiency of the Potassium Project

At the conference, Vinachem recommended that the Governments of the two countries continue to provide support, shorten the time for appraisal and approval of the FS report; create conditions allowing for the construction of some infrastructure items before the FS is approved; consider applying specific preferential mechanisms on corporate income tax, resource tax, and export tax; and support the coordination between Vinachem and Vietnamese investors to develop the area of over 90 square kilometer to form an industrial complex model in accordance with Laos' Law on Investment Promotion.

Concluding his presentation, Mr. Phùng Quang Hiệp emphasized that Vinachem will continue to demonstrate the highest determination, closely coordinate with functional agencies of both countries, to deploy the project on schedule and make practical contributions to socio-economic development, further consolidating the traditional friendship and special solidarity between Vietnam and Laos.