On November 4, 2025, during the working trip of the Ministry of Industry and Trade of the Lao People's Democratic Republic to Vietnam, the working delegation led by Lao Minister of Industry and Trade Malaithong Kommasith had a working session with Binh Son Refining and Petrochemical Joint Stock Company (BSR) and witnessed the signing of a Memorandum of Understanding on cooperation between BSR and Somvanchaleun Petroleum Jelly Company - a petroleum trading enterprise of Laos.
Attending the meeting, on the side of the Lao Ministry of Industry and Trade, there were representatives of the Department of Industry, the Department of Standards and Measurement, and the Department of Internal Trade. On the side of BSR, there were Mr. Bui Ngoc Duong - Chairman of the Board of Directors, Mr. Nguyen Viet Thang - General Director, along with leaders of the Board of Directors, the Board of General Directors, the Factory's Board of Directors and functional departments.
International cooperation and business expansion are the focus of Petrovietnam's sustainable development strategy. For BSR, expanding transactions to foreign markets helps diversify revenue sources, reduce dependence on the domestic market, improve competitiveness and flexibility in the context of fluctuating oil prices and world energy demand.
In its production and business development strategy, BSR proactively expands trade cooperation, signs contracts and long-term export memorandums of understanding with partners in Southeast Asia, especially promoting product supply to Laos, Cambodia, Myanmar, Indonesia and some East Asian markets.
The signing of the Memorandum of Understanding with Somvanchaleun is an activity to concretize cooperation between the two sides. On July 8, 2025, somvanchaleun's working group visited Dung Quat Refinery, hoping to cooperate in transporting and consuming products in the Lao market.
In July 2025, the two sides agreed to directly export DO oil to Laos. On July 21, 2025, BSR and Somvanchaleun signed a road export testing contract. On July 28, 2025, 315m3 of DO oil was completed clearing customs at Na Meo Border Gate (Thanh Hoa) - marking BSR's first DO export deal to Laos. In early September 2025, BSR continued to export 225m3 of DO oil, bringing the total export output to 559m3.
Speaking at the meeting, Mr. Bui Ngoc Duong - Chairman of the Board of Directors of BSR introduced the overall development process and future orientation of the Company. He said that BSR recognizes great room for development in the Lao market and hopes that the Ministry of Industry and Trade will create a special mechanism to promote the export of DO oil, RON95 gasoline, RON92, Jet A-1 fuel and plastic granules to Laos.
Regarding future orientation, Mr. Bui Ngoc Duong said that BSR is shifting towards green production. Laos can become a source of cassava for the Ethanol Dung Quat Factory to produce E100 bioalcohol to serve the blending of E10 RON95 gasoline, in line with the roadmap for developing environmentally friendly fuel. The two sides can also cooperate in the forestry sector to exchange carbon certificates, exploit minerals for new energy and petrochemical of added value.
With the capacity of Dung Quat Refinery, BSR can completely meet the demand for high-quality petroleum products for the Lao market, contributing to strengthening Vietnam - Laos energy cooperation, Mr. Bui Ngoc Duong affirmed.
Speaking at the meeting, Lao Minister of Industry and Trade Malaithong Kommasith highly appreciated BSR's production capacity and reputation, emphasizing that the signing of a Memorandum of Understanding between the two enterprises is an important first step in developing the petroleum market stably and sustainably, bringing practical benefits to both sides. He affirmed that the Lao Ministry of Industry and Trade will consider supporting BSR in boosting the export of petroleum products (DO, RON95, RON92, Jet A-1 and other products) to Laos, and at the same time considering specific policies in import procedures, creating favorable and effective customs clearance conditions.
Laos' gasoline demand is currently about 1.8 - 2 million tons/year, imported 100% ( 90% from Thailand, 10% from Vietnam and other sources). In the coming time, the two sides hope to increase the proportion of supply from Vietnam to at least 30%, thereby enhancing the effectiveness of bilateral cooperation, ensuring energy security and socio-economic security for Laos.
The Minister assigned units under the Lao Ministry of Industry and Trade to coordinate with BSR in the supply of green materials, minerals, logistics, and transportation, and at the same time requested BSR to send a working group to Laos to survey the market, warehouses, and transportation to promote cooperation in the coming time.
The signing event between BSR and Somvanchaleun Petroleum Jelly marks an important step forward in BSR's strategy of integrating and expanding international business, affirming the prestige of Vietnamese enterprises in the field of petrochemical refining, while contributing to strengthening the comprehensive cooperation between Vietnam and Laos to become increasingly deeper and more effective.
