Vietnam's Vinachem Resumes $492 Million Potash Project in Laos with 2028 Production Target

Key summary

On October 12, 2026, National Chemical Group of Vietnam (Vinachem) held a ceremony to restart its potash mine and processing plant project in Nong Bok district, Khammouane province, Laos, after a nearly 10-year suspension. The facility aims to begin production in 2028 with an annual capacity of 500,000 tons of potassium chloride for fertilizer manufacturing. Originally halted in 2020 due to payment disputes with contractors while construction was 57% complete, the project now covers approximately 1,000 hectares in Ban Muang Kay, Nong Bok district, holding about 32 million tons of potash reserves. The Lao government has extended the mining concession until 2030, requiring investors to prioritize domestic processing, skills transfer for Lao labor, and environmental protection. Local authorities expect the plant to create over 600 jobs, increase local mineral value, support Vietnam's fertilizer industry, and generate revenue for Laos. Environmental concerns persist following two sinkholes in December 2025 near a Chinese mine; preliminary assessments in January 2026 suggested the potash mine may not be the cause, though official reports remain unpublished. Developers are currently preparing environmental impact assessments and seeking approvals.