Vietnamese Finance Minister Vu Van Ninh said Thursday the country's first oil refinery plant will meet 45% of domestic demand for petroleum products by the second quarter of next year.

The $2.5 billion Dung Quat refinery, which is being built in Quang Ngai province and is expected to test run before the end of this year, will have a processing capacity of 6.5 million tons of crude oil a year, or 130,000 barrels a day.

Vietnam is restructuring its resources, including the state-owned enterprises, natural resources of oil, gas and materials to improve the economy, Ninh said during a conference call with international investors.

"Our oil refinery plant will be able to supply 45% of domestic demand by the second quarter of next year," Ninh said.

Vietnam will also increase the production of steel, cement and fertilizer, he noted.

"By reducing imports this year and in future, I believe that Vietnam will be capable of lowering inflation and maintaining the quality for the growth," he said.

Vietnam's economy is still under tight government control; it will grow 7% as the government targets this year, Ninh said.

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