Vietnam has decided to put an end to a $538m oil refinery project after investors failed to initiate construction even after eight years of securing a licence.
The Mekong Delta-based Can Tho refinery received its licence in 2008.
The refinery was expected to process around two million tonnes of crude oil annually.
Quoting the reports of Can Tho municipal authority, Reuters reported that the licence was granted to the joint venture between Semtech Limited BVI and a Vietnamese firm, Vien Dong Investment and Trading Co, however, Semtech later withdrew from this project.Semtech was replaced by Razeedland Plaza, a subsidiary of Brunei's SGB Refinery Petrochemical Corporation, however, this new venture also failed to execute the project.
Can Tho refinery is the second project to be cancelled in Vietnam this year.
The central region authorities previously cancelled an agreement with Thai oil company PTT for the construction of a $20bn refinery and petrochemicals plant due to delays.
Though Vietnam holds the third largest crude oil reserves in Asia after China and India, it has only one functioning refinery.
Its only refinery, the 130,500 barrel per day (bpd) Dung Quat plant operates at 107% of its capacity.
State oil and gas company PetroVietnam is currently developing the second oil refinery, known as the $7.5bn-worth Nghi Son facility.
This 200,000bpd facility is expected to commence production from July next year, however, this facility is also facing constructional delay.