A joint venture between a Vietnamese joint stock company and the U.S.-based Semtech Ltd is completing an investment report on building an oil refinery in Vietnam's southern Can Tho city.

The venture plans to construct the refinery with annual processing capacity of two million tons in the city's O Mon Industrial Park, according to local newspaper Vietnam Industry.

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.