The prime minister of Vietnam has granted his approval in principle to plans to construct the country's first oil and gas university, it has been confirmed.

Under the proposals, the Ministry of Education will work to set up the institution in the Hoa Binh province, in the mountainous north of Vietnam.

However, the project will be fully funded by PetroVietnam, with the state-owned oil and gas company to also work alongside education officials in developing a curriculum designed to help develop the next generation of professionals for the sector.

It is expected that a number of different courses will be offered to students, all aimed at addressing the current professional shortfalls being seen in the national oil and gas sectors, while the Ministry is also considering providing annual scholarships to allow talented students from other Vietnamese colleges and universities to attend the Hoa Binh institution.

Prior to work commencing, the Ministry of Education is to carry out a feasibility study into the project, the prime minister has ruled, with this likely to be submitted in the next year.

At the same time, PetroVietnam, along with the Thai industrial group Siam Cement, has been licensed to build a new $3.77 billion petrochemical complex just east of Ho Chi Minh City, with operations expected to begin in 2013.