Vietnam’s liquefied petroleum gas (LPG) production reached 74,900 tons in March, up from 63,200 tons in February. Total output for the first quarter stood at 209,100 tons, reflecting a 49.0 percent increase compared to March 2024 and a 7.0 percent rise year-on-year, according to data from the General Statistics Office.

Vietnam’s liquefied petroleum gas (LPG) production is an essential segment of the country’s energy sector, with LPG being widely used in domestic, industrial, and commercial applications. The country produces LPG primarily from natural gas fields and oil refineries, with both domestic consumption and export markets being key drivers of production.

The majority of LPG in Vietnam is produced by state-owned PetroVietnam and its subsidiaries, which operate several refineries, including the Dung Quat and Nghi Son refineries. These refineries process crude oil and natural gas to extract LPG, which is then distributed for various uses, including cooking, heating, and as a fuel for vehicles. The demand for LPG has grown steadily as urbanization increases, and more households and businesses turn to LPG for its convenience and relatively lower environmental impact compared to traditional fuels like coal or wood.

In addition to domestic use, Vietnam exports LPG to neighboring countries in Southeast Asia, including China, Thailand, and others, leveraging its strategic location and competitive production costs. Vietnam’s LPG export market has expanded in recent years, and with the global demand for cleaner and more efficient energy sources rising, the country is well-positioned to further grow its LPG production and export capacity.

Despite steady production, the LPG sector faces challenges, such as fluctuating global LPG prices, domestic infrastructure limitations, and competition from other energy sources. However, continued investment in refinery capacity and logistics infrastructure, along with government support for the energy sector, is helping address these challenges.

Vietnam’s LPG production plays a vital role in the country’s energy supply, serving both domestic needs and export markets. With continued investment in infrastructure and rising demand for cleaner fuels, the LPG sector is expected to grow, contributing further to Vietnam’s energy diversification strategy and economic development.