Hanoi: The Binh Son Refining and Petrochemical JSC (BSR), a member of the Vietnam National Industry-Energy Group (Petrovietnam), is set to increase its export activities to Laos following the signing of a memorandum of understanding (MoU) with Somvanchaleun Petroleum Jelly of Laos. The MoU was signed in the presence of Lao Minister of Industry and Commerce Malaithong Kommasith.
According to Lao News Agency, the MoU was signed during a working session between BSR representatives and the Lao minister. BSR’s Chairman of the Board of Directors, Bui Ngoc Duong, highlighted the potential for growth in the Lao market and expressed the company’s interest in leveraging its strengths in producing refined petroleum products. Duong suggested that the Lao Ministry of Industry and Commerce could develop special mechanisms to facilitate BSR’s efforts to increase exports to Laos.
BSR is focusing on transitioning towards greener production methods. Duong noted the possibility of Laos supplying cassava chips to BSR’s Dung Qu
at ethanol plant for the production of E100 bioethanol, which is used in blending RON95 E10 gasoline. This initiative is part of BSR’s approach to environmentally friendly fuel production. Additionally, BSR and its Lao partners could explore partnerships in forestry for carbon credit exchanges and the exploitation of mineral resources to enhance new energy and petrochemical product development.
Duong assured that with the capacity of the Dung Quat Oil Refinery, BSR is well-positioned to meet the demand for high-quality petroleum products in Laos, thereby strengthening Vietnam-Laos energy cooperation amid the region’s increasing integration.
Minister Kommasith praised BSR’s production capabilities and reputation, noting that the MoU represents a crucial initial step toward establishing a stable and sustainable petroleum market that benefits both parties. The Lao Ministry of Industry and Commerce is considering supporting BSR in expanding its export range to include diesel, RON95 and RON92 gasoline, Jet A-1,
among other products. The ministry will also review special import procedures to ensure efficient customs clearance.
Lao authorities have acknowledged the country’s annual fuel demand of approximately 1.8-2 million tonnes, requiring a reliable supply at competitive prices. The Lao official indicated that the authorities would assess BSR’s proposals concerning green materials, minerals, and logistics costs associated with fuel. Concurrently, BSR plans to send a delegation to Laos to explore market and transport opportunities, aiming for deeper cooperation with Somvanchaleun Petroleum Jelly and other oil, gas, and mineral companies in Laos.
Currently, Laos imports all its fuel needs, with around 90% sourced from Thailand and 10% from Vietnam and other countries. The expanded cooperation between BSR and Lao partners is expected to enhance economic ties and support Laos’ energy and socio-economic security. The objective is to increase Vietnam’s share of Laos’ fuel supply to at least 30%, thereby fostering bilat
eral cooperation and sustainable development for both nations.
As part of its broader business development strategy, BSR is pursuing trade partnerships and signing long-term export contracts with partners across Southeast Asia. The company is particularly focused on supplying products to Laos, as well as Cambodia, Myanmar, Indonesia, and emerging markets in East Asia.
