The Industrial Production Index (IPI) for natural gas extraction in Vietnam increased by 0.76 percent in November compared to October, indicating slight month-on-month growth, according to Vietnam’s General Statistics Office. Despite this modest improvement, the sector continues to face significant long-term challenges.
Year-on-year, the natural gas extraction index recorded a sharp decline of 23.35 percent in November 2024 compared to the same period in 2023. Over the first 11 months of 2024, the IPI for natural gas extraction fell by 17.77 percent compared to the corresponding period in the previous year, reflecting sustained pressures on the industry.
The steep annual contraction underscores challenges in Vietnam’s natural gas sector, including depleting reserves, fluctuating global energy prices, and growing competition from renewable energy alternatives. These factors have reduced output and strained profitability within the industry.
Natural gas extraction remains critical to Vietnam’s energy infrastructure, contributing to electricity generation and industrial activities. However, transitioning to sustainable energy solutions while ensuring stable supply chains will be key to overcoming these challenges.
See also: Vietnam’s Gas Power Industry: Overview