A Singaporean company has planned to build an oil refinery complex with investment of 1.2 billion U.S. dollars in Vietnam's central Phu Yen province, local newspaper Labor reported Monday.

Under a memorandum of understanding signed between the SP. Chemicals Company and the provincial People's Committee on March 30, the future refinery with annual capacity of 1.5 million tons is expected to come into operation in 2012.

The construction of Vietnam's first oil refinery started in central Quang Ngai province in November 2005. Capitalized at some 2.5 billion U.S. dollars and expected to become operational in late 2008 or early 2009, the Dung Quat refinery with an annual refining capacity of 6.5 million tons of crude oil is of significance in ensuring energy for the country, said Vietnam's National Oil and Gas Group PetroVietnam the project's investor.

Vietnam is making preparation for the construction of its second oil refinery named Nghi Son in central Thanh Hoa province. The Vietnamese government has recently approved a plan on constructing the third oil refinery with annual processing capacity of at least 7 million tons in southern Ba Ria Vung Tau province.