Vietnam’s natural gas extraction increased by 9.3 percent in December 2024 compared to November 2024, according to Vietnam’s Industrial Production Index.
However, year-on-year, the sector saw a significant decline of 12.5 percent in December compared to December 2023. For the entirety of 2024, natural gas production dropped by 15.4 percent compared to 2023, reflecting persistent challenges.
The month-on-month rise in December suggests a temporary recovery, possibly to meet seasonal or year-end demand. Nonetheless, the year-on-year and year-to-date contractions highlight challenges such as declining reserves, reduced exploration, and increased competition from alternative energy sources.
Natural gas is a crucial energy resource for Vietnam’s industrial operations and power generation. Despite its importance, the sector faces pressures to modernise and adapt to the nation’s long-term energy transition goals, which emphasise renewables.
The December increase provides short-term optimism but underlines the need for strategic reforms to address the sector’s underlying issues.
See also: Gas Power in Vietnam