Vietnam has started building its second oil refinery in a bid to feed the nation's booming economy.

Vietnam Oil and Gas Corporation, the oil monopoly in the communist nation, set up a joint-venture with its counterparts from Japan and Kuwait to build Nghi Son refinery in the north of the country.

Vietnamese Prime Minister Nguyen Tan Dung hailed the project at the ground-breaking ceremony, saying it was the country's most important and biggest power scheme, attracting capital investment of 6.2 billion dollars.

The Nghi Son refinery will be operational by 2013 and will turn Kuwaiti oil into petrol, liquefied petroleum gas, diesel, kerosene and jet fuel.

Produced by Radio Australia and Australia Network