Dung Quat Bio-Ethanol Plant has had to shut down after just four years due to major losses.

Construction on USD90.5 million plant started in September 2009 and finished in early 2012.

Dung Quat Bio-Ethanol Plant

Nguyen Thi A, a resident living near the plant said, the plant had halted its operation over the past few months and many of its engineers and workers had left the 330-tonne a day capacity plant to find other jobs.

Pham Van Vuong, the plant director, said that, "We’ve basically shut down the plant from last year because of big losses. In the context of a sharp fall in petroleum prices in the world market, prices of E5 bio-gasoline can't compete. E5 production costs are higher, so, our product prices must be higher."

At present, only eight localities in Vietnam use E5 bio-gasoline with a total consumption of 2,000 cubic metres per month, equal to 24% of the plant's daily capacity. "We’ve been trying to seek ways to export ethanol, but also failed to compete pricewise," Vuong added.

The director said that the management board had encouraged 128 engineers and workers to stop working since March 2016. Meanwhile, 50 workers has been arranged to stay to maintain the plant machines and equipment.