The move targets to ease the pressure on the country's petroleum supply.
The plant will increase its processing capacity from 148,000 barrels to 171,000 per day and upgrade technology, five auxiliary workshops, and two peripheral workshops.
The expansion project is expected to complete in the first quarter of 2028.
The Government will infuse equity of US$503 million (VND12.5 trillion), while the rest will come from loans.
The refinery plant located in the Dung Quat Economic Zone in central Quang Ngai province is run by the Binh Son Refining and Petrochemical JSC and meets 35 percent of Viet Nam's petroleum needs.
Viet Nam is home to Dung Quat Oil Refinery, Nghi Son Refinery and Petrochemical LLC, and condensate processing plants with a combined capacity of 14 million tons of oil per year. The volume meets about 70 percent of current domestic demand, and the rest is imported through major oil trading companies.
The country may build another oil refinery complex worth up to US$19 billion in the southern province of Ba Ria – Vung Tau, operated by Petro Viet Nam, with a capacity of 10 million tons per year./.