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On the morning of 12 October, in Nongbok district, Khammouane province, Laos, the Vietnam National Chemical Group (Vinachem), in cooperation with the Vietnam Energy and Mining Investment Joint Stock Company, held a ceremony to restart the Potash Mining and Processing Project, with the aim of bringing a plant with a capacity of 500,000 tonnes of potassium chloride per year into operation by 2028. The project is expected to help secure raw material supplies for Vietnam’s fertiliser industry, while also contributing to local economic development and the Lao state budget.

The ceremony took place at the plant site in Muangkhay village, Nongbok district, with the attendance of Deputy Minister of Industry and Trade of Laos Phuttavan Nanthavong; Chairman of the Khammouane Provincial Government Committee Somsaad Ounsida; Vietnamese Ambassador to Laos Nguyễn Minh Tâm; representatives from the business development agency and various authorities from both countries. Representing Vinachem were Chairman of the Members’ Council Phùng Quang Hiệp, Group leaders, and department heads.

Securing Raw Materials for Fertiliser Production

According to the revised feasibility study (FS), the project has a total investment of approximately USD 500 million, designed for a capacity of 500,000 tonnes of potassium chloride (KCl) per year, and is expected to create over 600 jobs.

The project restart comes as Vietnam imports nearly one million tonnes of potash annually, around 350,000 tonnes of which is sourced from Laos. Vinachem’s own units import about 190,000 tonnes each year. Once operational, the plant is expected to enable the Group to secure part of its potash supply for fertiliser production.

The basis for this restart was the approval, on 31 July 2026, by the competent authorities in Vietnam for Vinachem to partner with the Vietnam Energy and Mining Investment Joint Stock Company to continue the project’s implementation.

Vinachem and its partner plan to develop the project as an industrial complex, combining mining with deep processing in order to establish a value chain for potash salt. This approach will enhance resource value and strengthen the link between mining and industrial production activities.

In line with the state economic development strategy set by Resolution No. 79-NQ/TW dated 6 January 2026 of the Politburo, restarting the project underscores Vinachem’s role in securing raw materials for the fertiliser sector. Mobilising resources for project implementation goes hand in hand with improving investment efficiency and bolstering domestic production autonomy.
At the same time, investment cooperation in Laos is consistent with Resolution No. 59-NQ/TW dated 24 January 2025 of the Politburo on international integration in the new context, aligning economic cooperation with the practical interests of both countries.

Aiming to Begin Production by 2028

According to the plan, Vinachem and its partner will focus on obtaining approval for the FS and environmental impact assessment in October 2026. Compensation, site clearance, and construction of auxiliary works are scheduled for 2026, with the goal of completing construction and starting operations in 2028. To achieve this, Vinachem has requested that the Lao side continue to support investment procedures, site clearance, and policy arrangements for the project.

Speaking at the ceremony, Vinachem Chairman of the Members’ Council Phùng Quang Hiệp emphasised that the restart ceremony is an important milestone, but only the beginning. “What is more important is to turn the attention, direction, and support of the leaders of both countries, ministries, and Khammouane province into tangible progress and results for the project,” he stated.

Vinachem indicated it would concentrate resources and closely coordinate with ministries, departments, and localities of both countries for project implementation. The Group’s priority is to ensure progress is matched by investment efficiency, safety, and environmental protection.

Linking Investment Effectiveness with Local Benefit

Commenting on the significance of the event, Vietnamese Ambassador to Laos Nguyễn Minh Tâm noted that the restart reflects a determination to turn potential and cooperation opportunities into real development outcomes. According to the Ambassador, the project’s effectiveness should be measured not only by investment or output, but also by stable employment, technical workforce training, environmental protection, and improved livelihoods. He affirmed that the Vietnamese Embassy in Laos will continue to act as a bridge, supporting the project’s lawful and effective implementation.

Deputy Minister of Industry and Trade of Laos Phuttavan Nanthavong assessed the project as economically and socially significant, reflecting the close cooperation between the two countries. He noted that Laos has already taken support measures, including extending the mining licence, approving plans for importing machinery and equipment, and facilitating FS adjustments.

For the next phase, the Deputy Minister urged the investors to focus on processing, value-added product development, and links with domestic industry and agriculture; to prioritise training for Lao workers and technology transfer. Project documentation should include requirements for safe mining, environmental monitoring, water and tailings management, and land rehabilitation.

Chairman of the Khammouane Provincial Government Committee, Somsaad Ounsida, affirmed the project’s importance for local industrial development; requested relevant agencies to continue facilitating project implementation, and urged investors to adhere to schedules, protect the environment, and bring products to market as soon as possible.

To conclude the ceremony, delegates performed the project restart ritual, marking the transition to a new implementation phase. Vinachem has identified the timely, efficient, safe, and environmentally responsible commissioning of this key project as a top priority in the period ahead. In doing so, the Group aims to secure domestic fertiliser raw materials, and to further nurture the special friendship, solidarity, and comprehensive cooperation between Vietnam and Laos through tangible joint achievements.

Some images from the ceremony: