It sounds hard to believe, but it is true. By establishing VN Oil Joint Stock Company in Vietnam, overseas Vietnamese entrepreneur Nguyễn Hữu Văn wants to turn hazardous waste oils into... gold.
The story began when Nguyễn Hữu Văn, a Vietnamese American, after many years abroad, remained troubled that he had done little for his homeland. He felt a special connection and debt to the oil and gas industry, yet had contributed little and was already “approaching old age.” He therefore decided to leave the United States and return to Vietnam to fulfill that obligation.
Originally from Hanoi but raised in Saigon, Nguyễn Hữu Văn went to West Germany in 1969 to study petroleum engineering. After graduating, he moved to America to build his career.
After 2 decades abroad, he returned to Vietnam for the first time in 1990. Seeing hardship everywhere and knowing the country had substantial oil and gas resources, he decided to return and contribute to his homeland, drawing on his 20 years of experience in the global oil and gas industry.
Initially, he simply organized seminars to introduce and teach technology and skills to Vietnamese oil and gas engineers. He then became a bridge enabling them to study in the United States. At the time, he represented major oil and gas businesses in Vietnam, such as Smith International, ABB, Invensys, Ingersoll Ranch, and WorleyParson… At times, he also worked as a management and supervision consultant for projects such as Vũng Áng 1 and Mông Dương 2 thermal power plants…
But eventually he realized Vietnam was wasting a goldmine called ‘used lubricating oil.’ Each year, Vietnam imports around 400,000 tons of base oil worth about 500 million USD. Mixed with additives, base oil becomes lubricant that keeps motorbikes, cars, aircraft, ships, generators and other machinery running smoothly.
However, after use, this oil is discharged directly into the environment untreated, causing serious harm. As an industry insider, he knows waste lubricating oil can be treated, have impurities removed, and undergo high-tech hydrotreating to become base oil again, at a price 5-7% below imported base oil. Factory investment is also not too high, around 110 million USD. The market is wide open among lubricant distributors in Vietnam, such as Nikko, Vilube, Vidamo, and International Lubricants Company…
Putting his idea into action, in 2010 Mr. Văn began planning VN Oil, a waste lubricant treatment plant producing API II-standard base oil using technology from CEP (USA). If successful, it would be the first plant in Southeast Asia and the sole one in Vietnam to apply this technology. With it, Vietnam could address an environmental problem while saving a considerable amount of foreign currency spent on base oil imports.
Following preparation efforts, VN Oil was included by the government in 2014 among priority high technologies and designated for preferential loans from the Vietnam Development Bank (VDB). “I also applied for Vietnamese citizenship to facilitate the factory’s future business activities,” Văn said.
After more than 6 years of preparation, Văn’s long-nurtured “child” was finally about to be “born.” Construction began at Hiệp Phước Industrial Park in Ho Chi Minh City, with operations expected by the end of 2019. The factory would then process 62,000 tonnes of waste oil per year and supply around 43,000 tonnes of AP II base oil to the market. At that point, waste oil would turn into gold.
“But that factory meets only 10% of market demand. Vietnam needs at least 4 factories like it,” Mr. Văn said with a smile, as though hinting at grand plans still taking shape.
The only thing is that VN Oil's exclusive contract with CEP will end in 2020, leaving only about 3 years under the agreed schedule. CEP will then be free to sign cooperation agreements with other companies in Vietnam. This does not worry Mr. Văn, however, because what matters to him is protecting Vietnam's environment.
His only concern is that opening up credit for the project has still not gone smoothly, despite government directives and more than a year of project appraisal by VDB.
But beyond all his worries, what matters to Văn is finding a way to contribute to his homeland and country. Without Vietnam, there would be no Nguyễn Hữu Văn as he is today.
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